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Karachi: Pakistan's stocks rose, snapping the longest losing streak in at least 18 years, after the Karachi Stock Exchange's members bailed out investors to halt violent protests at the exchange.
Brokers bought Rs4.5 billion ($63 million) of shares at an emergency meeting last night, Shehzad Chamdia, a member of the board of Pakistan's largest bourse, said by telephone today. "This should ease the situation," Chamdia said. "There is no need for us to close the market."
The Karachi Stock Exchange 100 index rose 0.2 per cent, or 21.86, to 10,234.78, at the 1:30 p.m. local time close, after rising as much as 2.4 per cent earlier.
The equity benchmark is down 27 per cent this year. Pakistan Petroleum, the biggest gas producer, and Pakistan Telecommunications, the biggest phone service provider, both rose by five per cent , the daily limit.
Police and paramilitary forces ringed the exchange, a day after hundreds of investors stoned the building and shouted anti- government slogans.
The Securities and Exchange Commission of Pakistan, which imposed and then removed a 1 per cent daily limit on price declines this week, had attempted to halt a slide that wiped out $30 billion of market value in three months, threatening to undo a 14-fold rally since 2001.
"The bailout was a step in the right direction but there are still lots of problems, said Habib-Ur-Rahman, who manages 6.5 billion rupees in stocks and bonds as chief executive officer at Atlas Asset Management. "Fundamentals in the country are still not stable though earnings season may attract some buying."
Pakistan Petroleum rose Rs9.77 to Rs205.27. Pakistan Telecommunications climbed Rs1.69 to Rs35.49.
Oil & Gas Development, the biggest fuels explorer, added Rs2.80 rupees or 2.7 per cent to Rs108.30.
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