KSE 100-index ends flat, below 9200

KARACHI: Karachi’’s 100-index ended flat on Tuesday despite a downgrade in the outlook for the country’’s debt as the market remained propped up by a floor on the index imposed last month.Moody’’s Investor Services downgraded the outlook for Pakistani debt to negative and highlighted the foreign exchange market’’s doubts over when funds would arrive to bolster dangerously low currency reserves.The Karachi Stock Exchange (KSE) benchmark 100-share index ended a marginal 0.01 percent, or 0.71 points, lower at 9,199.51 on turnover of 4.2 million shares.”If there was no floor we would have seen massive selling by local and foreign investors,” said Shuja Rizvi, director of broking operations at Capital One Equities Ltd.”It seems now it will be very difficult to attract foreign investment.”The KSE board imposed a floor on the benchmark index on Aug. 28 to stop if falling below 9,144 points. The floor is due to be reviewed on Thursday but dealers do not expect it to be removed.Authorities also banned short selling in the ready and futures markets for a month from Wednesday, when trading in the October contract begins.Dealers said investors were worried about a weak economic outlook with the rupee hitting a record low of 78.55 on Monday, inflation at more than 25 percent and dwindling foreign reserves.Foreign currency reserves were down to $8.91 billion in the week that ended on Sept. 13. Analysts said $8.91 billion was not even enough to cover two full months of imports.

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U.S. drone crashes in Pakistan: reports (Reuters via Yahoo! News)

A pilotless U.S. drone aircraft crashed in northwest Pakistan’s South Waziristan region on Tuesday, Pakistani news channels reported, but there was no official confirmation.

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Bush, Zardari to Discuss U.S. Incursions in Pakistan (Fox News)

U.S. military incursions into Pakistan that have stoked anti-American sentiments top the agenda for President George W. Bush’s talks with the nation’s newly elected president.

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India accuses Pakistan of ’serious’ ceasefire violation (AFP via Yahoo! News)

The Indian army accused Pakistan of a “serious” ceasefire violation along the de facto border dividing Kashmir between the two nations after a gunbattle left two soldiers dead.

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Pakistan army says 50 suspected militants killed (AP via Yahoo! News)

An army spokesman says security forces backed by helicopter gunships and artillery have killed more than 50 suspected militants in volatile northwest Pakistan.

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Pakistan News

Explosives laden vehicles enter Islamabad: Report

ISLAMABAD: Three explosives laden vehicles have entered the federal capital that could be used in terrorist attacks, according to intelligence agencies.Following the warning, security has been beefed up and search operation has been started to locate the vehicles.

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Pakistan News

Bush, Zardari to discuss US incursions in Pakistan (AP via Yahoo! News)

U.S. military incursions into Pakistan that have stoked anti-Americanism top the agenda for President Bush’s talks with the newly elected president of the Muslim nation, which is reeling from a deadly truck bomb that devastated a Marriott hotel in Islamabad.

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BA suspends Pakistan flights indefinitely (CNN.com)

British Airways is suspending flights to and from Pakistan indefinitely following the deadly bomb attack on the Marriott Hotel, the airline says.

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60 die in attacks on Qaeda strongholds in Pakistan (International Herald Tribune)

Security forces backed by helicopter gunships and artillery killed more than 60 insurgents in northwest Pakistan.

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Pakistan allows Shoaib Akhtar to play domestic event (AFP via Yahoo! News)

Pakistan cricket authorities said Tuesday that controversial paceman Shoaib Akhtar can play in a domestic cricket tournament — just one week after barring him from the same event.

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