KARACHI (Reuters) - The stocks closed more than 1 per cent lower on Tuesday as domestic institutions sold banking and energy shares to book profits after substantial gains last week, dealers said. The Karachi Stock Exchanges benchmark 100-share index closed or 114.30 points, or 1.28 per cent, lower at 8,821.56 on turnover of 140 million shares. The KSE-index has gained 50.4 percent this year after losing 58.3 percent in 2008. The market saw profit-taking by speculators as it gained 5.4 percent last week, said Asad Iqbal, managing director at Ismail Iqbal Securities. Dealers said profit-taking was seen in the banking and energy sectors as they led the rally last week when the KSE-index ended at its highest close this year on Friday at 9,002.67 points. Sentiment was still positive but the market may consolidate before passing the 9,000-point level, dealers said. Dealers said foreign investors had been looking at Pakistan because its macro-economic fundamentals were improving but there was selling from local institutions. According to official data, foreign investors bought shares worth $95.3 million in August and $64.3m in September. Last month, S&P raised Pakistans sovereign rating to B-minus from CCC+, citing improvements in its external liquidity and a reduction in its fiscal deficit. Among blue-chip companies, National Bank of Pakistan fell 2.73 percent to 75.06 rupees, Oil and Gas Development Co Ltd shed 0.35 percent to 112.24 rupees, and Pakistan Oilfields, ended 3.1 percent lower at 193.47 rupees. In the currency market, the rupee ended weaker at 82.85/95 to the dollar compared with Mondays close of 82.78/88. Dealers said the rupee was expected to face downward pressure because of import payments. The rupee has lost 4.53 percent this year after losing 22.12 percent in 2008.