Pakistani stocks end on 26-mth high; rupee firms
KARACHI | Fri Nov 5, 2010 8:37am EDT
Nov 5 (Reuters) - Pakistani stocks ended on a 26-month high on Friday in healthy volume led by foreign buying, on cheap valuations, and the energy sector was in the limelight following a two-year high of international oil prices.
The Karachi Stock Exchange's benchmark 100-share index .KSE ended 1.68 percent, or 179.81 points, higher at 10,882.00, its highest close since August 2008.
Volume also rose to a six-month high as 195.22 million shares were traded, compared with 125.9 million traded on Thursday.
"Foreign investors are now chasing the Pakistan market that has not performed in line with regional markets," said Mohammed Sohail, chief executive at Topline Securities Ltd.
Dealers said global oil prices hitting their highest intra-day level since October 2008 at $86.37 also helped the positive sentiment.
The energy sector has the heaviest weightage on the KSE-index and POL (PKOL.KA) rose 3.93 percent to end at 256 rupees, while Oil and Gas Development Co Ltd (OGDC.KA) gained 1.98 percent to 158.15 rupees.
Dealers said investors were awaiting the outcome of meetings with the International Monetary Fund, to discuss the possible release of the sixth tranche of an $11 billion emergency loan agreed in November, 2008. [ID:nSGE6A10EZ]
Policy level meetings resumed on Friday.
Pakistan is coming under more pressure in talks with the IMF to implement a reformed general sales tax as Islamabad attempts to secure the sixth tranche of an $11 billion emergency loan that has kept its economy afloat.
In the currency market, the rupee PKR= ended firmer at 85.27/32 to the dollar, compared with Thursday's close of 85.59/65 to the dollar because of fresh inflows of dollars in the market, despite a rise in international oil prices, dealers said.
"There was an increase in remittances from overseas Pakistanis which helped strengthen the rupee," said a currency dealer.
In the money market, overnight rates ended between 11 percent and 11.50 percent, compared with Thursday's close of between 11.50 percent and 12 percent.
The State Bank of Pakistan injected 9.7 billion rupees ($113.7 million) worth of government paper on Friday at 12.27 percent in seven day reverse repo contracts.
Pakistani stocks end on 26-mth high; rupee firms | Reuters