Pakistani stocks end lower; rupee firms

KARACHI, Nov 10 (Reuters) - Pakistani stocks ended nearly 2 percent lower on Tuesday in very low turnover, as security worries prompted by militant responses to an army offensive drove shares down for a third week, dealers said.

The Karachi Stock Exchange's .KSE benchmark 100-share index ended 1.95 percent, or 174.08 points, lower at 8,762.40 on turnover of 58.8 million shares.

"There was barely any interest as there is a lot of uncertainty regarding security and the political scenario," said Asad Iqbal, managing director at Ismail Iqbal Securities Ltd.

The KSE has shed 6.9 percent since Oct. 19, the first trading session after the military launched an offensive targeting militants in their South Waziristan stronghold, along the Afghan border.

Many investors have stayed sidelined since Taliban militants intensified attacks in cities and towns in response to the army campaign. The Pakistani Taliban on Tuesday vowed a protracted guerrilla war against the army. [ID:nSP6339]

Dealers said a New Yorker magazine report that Pakistan and the United States were negotiating a deal to allow specially trained U.S. units to boost security for the Pakistani nuclear arsenal had caused some uncertainty. [ID:nISL479601]

The KSE-100 index is up 49 percent this year after losing 58.33 percent last year.

In the currency market, the rupee ended firmer at 83.25/35 to the dollar compared with Saturday's close of 83.53/60.

The rupee has weakened 5 percent this year after losing 22.12 percent last year. Dealers expect pressure from importers will further weaken it. (Reporting by Sahar Ahmed; Editing by Bryson Hull) (For more Reuters coverage of Afghanistan and Pakistan, see: here)