KARACHI: Pakistan's main stock exchange closed lower, with the benchmark 100-share index of the Karachi Stock Exchange falling 0.77 percent or 181.92 points to 23,315.15.

Profit taking in cement and banking stocks caused the index to fall by 0.77 percent.

Media reports that the International Monetary Fund may insist that the government of Pakistan increase interest rates also affected investor sentiments, dealers said.

D.G.Khan Cement Company Ltd fell 3.77 percent to 91.09 rupees and Bank of Punjab was down 3.85 percent at 13.24 rupees.

The rupee ended weaker at 101.78/101.86 against the dollar, compared to Friday's close of 101.30/101.35.

Overnight rates in the money market rose to 8.75 percent from Friday's close of 8 percent.