Pakistani stocks end flat; rupee firms

KARACHI, Oct 23 (Reuters) - Pakistani stocks ended flat on Friday but ended 7 percent lower on the week, as cautious investors sold amid worsening national security, dealers said.

The Karachi Stock Exchange's benchmark 100-share index .KSE fell 0.03 percent, or 3.15 points, to 9,150.85 on turnover of 137 million shares.

The KSE-index has gained 56.02 percent this year after losing 58.3 percent last year.

"The law and order situation once again got the better of the market, and investors started selling their shares after the blast in Peshawar," said Asad Iqbal, managing director at Ismail Iqbal Securities Ltd.

A car bomb exploded outside a resturant in the northwestern city on Friday, wounding 15 people, two of them seriously, officials said. [ID:nSP487440]

Earlier a Taliban suicide bomber killed eight people outside a key Pakistani airforce facility.

Dealers said market fundamentals were strong and investors are expecting strong corporate earnings to be announced in coming days, but confidence had dampened due to the worsening security situation.

Dealers said investors were also worried that worsening security was forcing selling by foreign investors, who have been active buyers in the market in recent weeks.

In the currency market PKR=, the rupee ended the day at 83.24/27 to the dollar, compared with Thursday's close of 83.28/29.

The rupee has been supported by remittances from Pakistanis working overseas, but dealers expect pressure from importers will weaken the currency. (Reporting by Sahar Ahmed; Editing by David Fox) (For more Reuters coverage of Afghanistan and Pakistan, see: here)