KARACHI: Pakistani stocks ended more than 2 percent higher on Thursday, led by Oil and Gas Development Co Ltd (OGDCL) and rising investor confidence over news of Pakistan's continued foreign aid and meetings with international lenders.
Pakistan does not face the immediate risk of a withdrawal of foreign aid despite international accusations that it gave shelter to Osama bin Laden, Moody's Investors Service told Reuters. This report was released after the market closed on Wednesday.
Also, representatives from Pakistan and the International Monetary Fund (IMF) are due to meet in Dubai between May 11-17 to discuss budget targets for the 2011/12 fiscal year and the release of the next tranche of an $11 billion bailout loan, a finance ministry official told Reuters on Thursday.
This came a day after the IMF said it had postponed next week's scheduled talks in Pakistan because of security concerns following the killing of Osama bin Laden by US Special Forces on Monday in the town of Abbottabad, 50 km (31 miles) northeast of Islamabad.
The Karachi Stock Exchange's benchmark 100-share index ended 2.01 percent, or 234.64 points, higher at 11,906.69 on turnover of 89 million shares.
"A buying spree was seen across the board, especially in the energy sector, as OGDCL closed at its upper circuit and contributed more than 100 points," said Samar Iqbal, a dealer at Topline Securities Ltd.
OGDCL rose 5 percent to end at 148.95 rupees.
In the currency market, the rupee ended firmer at 84.45/52 to the dollar, compared with Wednesday's close of 84.66/72 amid a fall in international oil prices.
Brent crude fell by more than $3 to below $118 a barrel on Thursday.
In the money market, overnight rates were almost flat at 11.50 percent, compared with the previous day's close of 11.10 percent, and dealers said there were scheduled inflows of 112 billion rupees($1,32 billion)on Friday.
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