Pakistani shares rise; rupee firms

KARACHI, Nov 16 (Reuters) - Pakistani stocks rose on Monday in a broadbased rally, despite a suicide car bomb attack, on expectations of a cut in the key policy rate when the monetary policy is announced by the end of this month, dealers said.

The Karachi Stock Exchange's .KSE benchmark 100-share index ended 2.62 percent, or 237.14 points, higher at 9,304.31 on turnover of 169 million shares.

"Expectation of a policy rate cut in the upcoming monetary statement gave investors some confidence to take fresh positions," said Furqan Punjani, an analyst at Topline Securities Ltd.

The monetary policy for Decemeber and January is due to be unveiled by the end of this month.

Dealers said investor sentiment improved also on better macroeconomic fundamentals after a statement from the International Monetary Fund last week.

The IMF said on Thursday that there were glimmers of recovery amid existing risks. [ID:nWEN6456]

The IMF bailed out Pakistan in November last year to avert a balance-of-payments crisis.

The Fund, which was reviewing the country's progress in Dubai with Pakistani officials, said discussions would be completed shortly as Pakistan looks to keep funds flowing from its $11.3 billion deal. [ID:nLC67543]

Dealers said volume was still on the lower side but the negative affect of the militants' attacks was lessening as it was occuring almost on a daily basis.