Pakistani shares were down in dull trade on Tuesday after the removal of a floor on the main index the previous day, and dealers said the only offers they were getting for bluechips were at their lower circuit breakers.
The Karachi Stock Exchange (KSE) benchmark 100-share index was 0.71 percent, or 62.53 points, lower at 8,754.57 on turnover of 4.54 million shares by 11:21 a.m. (0621 GMT).
The KSE-index closed on a two-and-a-half year low on Monday, after the floor on the index, imposed on Aug. 28 after sharp falls, was removed.
"There has not been a single transaction in any of the major scrips yet they have big sell orders at their lower circuit breakers," said Sajid Bhanji, a dealer at brokers Arif Habib Ltd, indicating that there were no buyers for bluechips.
The KSE index has a daily 5 percent limit.
Dealers said trade had only been seen in third-tier stocks and the market was likely to end lower.
The floor saw trade virtually coming to a halt as it blocked investors from exiting the market and brokerages cut jobs, with JP Morgan suspending its equities operations in Pakistan in late November.
Off-market trading was at up to 40 to 50 percent lower than official prices.
MSCI said last week it was removing Pakistan from its emerging markets index
.
In the currency market, dealers said fear of portfolio outflows put pressure on the rupee and it was quoted one percent lower at 80.80/81.00 to the dollar, compared with Monday's close of 79.95/80.05.
In the currency market, dealers said fear of portfolio outflows put pressure on the rupee and it was quoted one percent lower at 80.80/81.00 to the dollar, compared with Monday's close of 79.95/80.05.
"We could see the dollar hitting 82 rupees in a day or two," said a currency dealer.
Dealers said there were a few import payments but sentiment had turned negative.
Analysts expect foreign selling of $500 million to $600 million of the total $2.2 billion invested in Pakistani shares
.
This is likely to hit the rupee, which has already weakened close to 23.5 percent this year.
Moody's Investors Service confirmed on Monday its rating of four Pakistani banks' outlook as negative.
This is likely to hit the rupee, which has already weakened close to 23.5 percent this year.
Moody's Investors Service confirmed on Monday its rating of four Pakistani banks' outlook as negative.
Currency dealers said the tension with India after militant attacks in Mumbai last month had also put pressure on the rupee.
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