KSE-100 Index Up On Talk Of Musharraf Resignation

Friday, August 15, 2008 at 4:56 pm under Business News KSE-100 Index Up On Talk Of Musharraf Resignation

KARACHI :The Karachi stocks market rose 3.6 percent on Friday as investors bought battered bank stocks such as MCB Bank on hope that President Pervez Musharraf will quit, easing political tension that has rocked Pakistan’s financial markets.

The Karachi Stock Exchange (KSE) benchmark 100-share index closed at 10,258.71 points, on turnover of 74.3 million shares.

A coalition government official said on Friday that President Musharraf was ready to resign rather than face impeachment but was seeking immunity from prosecution for imposing emergency rule.

“Expectations are that the president will resign and this will reduce the political uncertainty,” said Mohammed Sohail, director of research at JS Global Capital Ltd.

Sohail said investors’ optimism over Musharraf’s resignation outweighed their concern over the dive in the rupee.

The rupee weakened to another record low against the dollar on Friday. Two traders said the rupee ended trade at levels of around 76.30/40 and 76.40/50 against the dollar.

MCB Bank, Pakistan’s largest bank by stock market value, jumped 4.9 percent. United Bank, the country’s third-largest bank, added 5 percent, and the National Bank of Pakistan, which has the largest bank network in the country, climbed 4.7 percent.

Other blue chips also rose.

Oil and Gas Development Co Ltd (OGDC), Pakistan’s biggest firm by stock market value, climbed 5 percent, and state-run Pakistan Petroleum Ltd was up 5 percent.

Pakistan financial markets have skidded this year on country’s political turmoil and wobbly economy.

The stock market has plummetted more than 50 percent from its record high of 15,739.25 points set on April 21. It has shed 27 percent this year, making it the third-worst performing market in Asia after Vietnam and China.