Speculation about Musharraf's ouster jolts Pakistan stocks

KARACHI - Pakistan's rupee and stocks plummeted Wednesday as the ruling coalition debated whether to impeach President Pervez Musharraf.

By (AFP)

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Published: Wed 6 Aug 2008, 6:38 PM

Last updated: Sun 5 Apr 2015, 11:50 AM

The benchmark KSE-100 Index fell below 10,000 points, sliding 3.6 per cent to 9,678.

The rupee also fell to near record lows of 72.70/73.20 (buying/selling) against the US dollar in the open market.

In the official inter-bank market, the rupee dropped to 72.40/72.50 to the dollar against Tuesday's close of 72.25/72.35.

With Wednesday's losses, the main Karachi bourse hit a 26-month low and has lost about 40 per cent of its value since January as worried foreign investors frantically dump their portfolios.

The markets dipped as the ruling coalition held a follow-up meeting on the possible impeachment of Musharraf, who still holds the power to dissolve the government.

Throughout July, heavy selling by foreigners and local institutions was prompted by rising tension along the country's border with Afghanistan over growing infiltration of Taliban militants into the neighbouring country.

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