The equity market "is likely to fall 60 to 70 points because rates in the kerb market have already plunged", said Osama Bin Shoaib, dealer at First Capital ABN Amro Equities.

Pakistan's Karachi Stock Exchange, however, elected to remain closed on Wednesday, while central bank said banks would be closed for business. "We have decided that the market will remain closed," Yasin Lakhani, chairman of the Karachi Stock Exchange said.

Earlier, Lakhani had said the market might remain shut because of a bank holiday which had been called for Wednesday. The Karachi Stock Exchange 100-share index ended on Tuesday up 7.15 points or 0.57 per cent at 1,256.94.

Shoaib said local investors would watch cautiously before making fresh investments, but the move had shut the door for foreign investmentin the near future. The news came after the trading hours at the Karachi Stock Exchange had ended. The index closed 7.15 points or 0.57 per cent higher at 1,256.94 points.

A foreign exchange kerb dealer said the rupee would be under pressure on Wednesday because "the dollar has just disappeared from the market" after the news. It was not clear if the kerb market would operate on Wednesday.

The rupee was trading at 54.45 against the US dollar in late trade against previous day's value of 54.39. The Pakistani currency's value in the interbank market was 51.86/51.89 rupees to a dollar against 51.81/51.85 on Monday.

An investment banker said the most important thing on Wednesday would be the reaction of the multilateral donors. "If there is a negative statement from the donors, it is bound to cause panic," he said.

The International Monetary Fund (IMF) has withheld a tranche from a $1.56 billion loan programme due since July, and sources said problems in implementing a reform programme had already delayedloans before Sharif's dismissal came.