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KARACHI Aug 18 Pakistan shares jumped 4.5
percent on Monday in the biggest one-day rise in nearly eight
weeks, led by blue-chip OGDC, as investors anticipated an end
to Pakistan's political turmoil after President Pervez
The Karachi Stock Exchange (KSE) benchmark 100-share index
.KSE finished up 4.49 percent at 10,719.62 points with 104.5
million shares traded.
Monday's rise was the biggest since June 24 when the index
leapt 8.6 percent after authorities took steps to stabilise the
"It eliminates all the uncertainty in the market and I
think the political uncertainty is coming to an end," said Asad
Iqbal, managing director at Ismail Iqbal Securities.
"The government will hopefully start concentrating on the
economy. From an economic point of view, they have no excuses
now and they have to perform."
Musharraf announced his resignation on Monday in the face
of an impending impeachment motion by the ruling coalition
The former army chief and firm U.S. ally had seen his
popularity slide over the past 18 months and had been isolated
since his allies lost a February election. [ID:nISL174014]
Blue chips led gains. Oil and Gas Development Co (OGDC.KA),
Pakistan's biggest company by stock market value, climbed 5
percent. MCB Bank (MCB.KA), the largest bank by stock market
value, added 5 percent as well.
Political turbulence in Pakistan has pummeled the country's
financial markets. The Pakistan rupee PKR=PK is near a record
low against the dollar, and the KSE index is hovering near
It has lost nearly a third of its value since hitting a
record high of 15,739.25 points on April 21, but speculation in
the past week that Musharraf may resign helped the index to
rise around 8 percent.
However, some analysts said the buoyancy in stocks may be
temporary because it remained to be seen whether the ruling
coalition government can put the economy back on track.
"The stock market and the currency markets have given very
positive responses but this is not the end of all issues. This
exuberance is going to be short-lived," saidImtiaz Gadar, head
of research at JPMorgan.
Pakistan's economy is wrestling widening trade and fiscal
deficits, and declining foreign exchange reserves that have
been depleted by high oil prices.
State-run Pakistan Petroleum Ltd (PPL.KA) and Pakistan
Telecommunication Co Ltd (PTCA.KA) were up 5 percent each as
(Reporting by Koh Gui Qing; Editing by Jerry Norton)