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Pakistan stocks rise 1.1pc to record high

ISLAMABAD — Pakistan’s benchmark stock index rose to a record, led by Pakistan Telecommunication Co., on optimism the return of former premier Benazir Bhutto to the country will end political uncertainty.

The Karachi Stock Exchange 100 Index added 163.27 points, or 1.1 per cent, to 14,755.22, beating on Wednesday’s highest, at the 2:15pm local time close. Pakistan Telecommunication, the No. 1 phone service provider, gained 3.8 per cent to 56 rupees.

“The sentiment is bullish on Bhutto’s arrival,” said Samiullah Tariq, a research analyst at Investcapital & Securities Ltd. in Karachi. “Political developments indicate she will share power with President Pervez Musharraf after the national elections, which is seen as a good sign for the economy by local and overseas investors.”

The government earlier this month introduced a law withdrawing corruption charges against Bhutto as part of a national reconciliation plan.

Bhutto and Musharraf have similar views regarding the economy and on Pakistan’s fight against terrorism, so it is expected that there will be a continuation of economic and foreign policies, Tariq said.

Growth outlook: Musharraf, who took power in a military coup in 1999, has overseen an average annual economic growth of 7.5 per cent in the past four years. The $146 billion economy is forecast to expand 7.2 per cent in the fiscal year that started July 1.

Pakistan Petroleum Ltd., the nation’s biggest gas producer, rose 1.1 per cent to 303.95 rupees. United Bank Ltd., the nation’s third-largest lender by assets, added 4.2 per cent to 205.70 rupees.