Pakistani stocks end almost flat; rupee weakens

The Karachi Stock Exchange (KSE) benchmark 100-share index closed down 0.07 percent, or 8.12 points, at 11,874.89 points.

Volume fell to 60.17 million shares, compared with 67.06 million traded on Monday.

“The market closed lower… amid thin trade due to limited institutional and foreign interest,” said Ahsan Mehanti, director at Arif Habib Corp.

Fauji Fertilizer Bin Qasim shed 0.56 per cent at 46.10 rupees, and Bank Alfalah fell 1.54 per cent to 12.17 rupees.

Financial services firm Jahangir Sidiqui rose 5.28 per cent to close at 5.58 rupees, while textile company Azgard Nine gained 7.59 per cent to end at 3.40 rupees.

S&P 500 Index Is Poised for Best January in 15 Years Amid EU Fiscal Accord

U.S. stocks rose, sending the Standard & Poor’s 500 Index toward its best January in 15 years, as most countries in Europe agreed to tighter budget controls and Greece made progress on debt talks.

Bank of America Corp. and Morgan Stanley (MS) increased at least 1.3 percent, following gains in European lenders.

Eli Lilly & Co. rallied 1.2 percent as the drugmaker’s profit beat projections.

Archer Daniels Midland Co., the world’s largest grain processor, slumped 3.2 percent amid disappointing results.

The S&P 500 added 0.4 percent to 1,318.20 at 9:46 a.m. New York time.

Stocks, Euro Rise on Greek Debt Talks

Stocks (MXWD) climbed around the world, heading for the best January since 1994, the euro strengthened and commodities gained after most countries in Europe agreed to tighter budget controls and Greece made progress on debt talks.

The MSCI All-Country World Index (MXWD) rose 0.6 percent at 9:30 a.m. in New York, taking its monthly gain to 6.2 percent.

The Standard & Poor’s 500 Index added 0.4 percent and is up 4.8 percent in the month.

The euro appreciated 0.2 percent to $1.3169, set for its first monthly advance since October.

Saudi Arabia’s central bank eyes bigger role

Saudi Arabia’s central bank will play a bigger role in the supervision of the country’s financial sector as the kingdom weighs opening up its stock market to direct investments by foreigners.

The country’s Capital Market Authority (CMA) said on Sunday that it had signed a cooperation agreement with the central bank or Saudi Arabian Monetary Agency (SAMA) to coordinate supervision of the financial sector in order to improve its stability.

As per the agreement, the two entities will coordinate in the supervision of corporate governance, risk management measures, initial public offerings (IPOs), sukuk issuance and merger and acquisition regulations as well as the exchange of information.

Egyptian Stocks Rise After Peaceful Protests

Egyptian stocks advanced to the highest in more than four months after peaceful protests marking the first anniversary of the uprising that toppled Hosni Mubarak.

Orascom Telecom Holding SAE (ORTE), the Egyptian mobile-phone company that was split into two units, rallied 6.9 percent.

Commercial International Bank (COMI), the biggest publicly traded lender in Egypt, jumped to the highest in almost two months.

The EGX30 Index (EGX30) surged 2.3 percent to 4,535.18, the highest since Sept. 13, at the 2:30 p.m. close in Cairo, bringing its gain for the year to 25 percent.

Greece, Bankers Expect Debt-Swap Deal This Week

Greece and its private creditors said they expect to complete a debt-swap accord this week after bondholders signaled they would accept European government demands for lower interest rates.

The sides are “close” to completing a voluntary exchange within a framework outlined by Luxembourg Prime Minister Jean- Claude Juncker, the Institute of International Finance, negotiating on behalf of private creditors, said in an e-mailed statement in Athens yesterday.

Creditors are prepared to accept an average coupon of as low as 3.6 percent on new 30-year bonds, said a person familiar with the talks, who declined to be identified because a final deal hasn’t been struck yet.

Asian Currencies Climb for a Fourth Week on Fed’s Interest Rate Outlook

Asian currencies rose for a fourth week, spurred by demand for higher-yielding assets after the Federal Reserve pledged to keep interest rates near zero through late 2014.

The JPMorgan Asia Dollar Index (ADXY) climbed to a three-month high as money managers plowed more cash into regional bonds and stocks.

Malaysia’s ringgit hit a four-month high and India’s rupee touched the strongest level in 11 weeks.

Gains were limited by concern Europe will struggle to forge a debt-swap deal involving 206 billion euros ($270 billion) of Greece’s repayment obligations.

U.S. Economy Grows 2.8%, Less Than Forecast

Restrained spending by consumers held growth in the U.S. economy to a 2.8% annual pace in the fourth quarter, slower than economists forecast while still the fastest pace in more than a year.

Gross domestic product, the value of all goods and services produced, climbed at a 2.8 percent annual pace following a 1.8 percent gain in the prior quarter, Commerce Department figures showed today in Washington.

The median forecast of 79 economists surveyed a 3 percent increase.

Growth excluding a jump in inventories was 0.8 percent.

Fitch Cuts Italian, Spanish Ratings

The credit ratings of Italy, Spain and three other euro-area countries were cut by Fitch Ratings, which said the five nations lack financing flexibility in the face of the regional debt crisis.

Italy, the euro area’s third-largest economy, was cut two levels to A- from A+.

The rating on Spain was also lowered two notches, to A from AA-.

Ratings on Belgium, Slovenia and Cyprus were also reduced, while Ireland’s rating was maintained.

The downgrades, flagged a month ago by Fitch, come as Greece negotiates with creditors on how to avoid a default and other euro nations struggle to bolster the region’s defenses against contagion should those talks fail.

KSE regains 76 pts on hopes of good earnings

The Karachi stock market managed to recover 76 points on the last trading day of the week Friday as expectations of strong corporate earnings next week triggered buying activity.

The Karachi Stock Exchange (KSE) 100-share index gained 76.30 points or 0.64 percent to close at 11,960.22 points as compared to 11,883.92 points of the previous session.

The KSE 30-share index was up by 107.59 points to close at 11,216.56 points as compared with 11,108.97 points.

Analysts said market closed in the positive zone supported by Oil and Gas Development Company (OGDC).