Pakistan shares rise, snapping worst losing streak in 18 years

Brokers bought Rs 4.5 billion ($63 million) of shares at an emergency meeting last night, Shehzad Chamdia, a member of the board of Pakistan's largest bourse, said 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 points, to 10,234.78, at the 1:30 pm local time, 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 Co, the biggest phone service provider, both rose by 5 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 Rs 6.5 billion in stocks and bonds as chief executive officer at Atlas Asset Management, in Karachi. "Fundamentals in the country are still not stable though earnings season may attract some buying.''

Pakistan Petroleum rose Rs 9.77 to Rs 205.27. Pakistan Telecommunications climbed Rs 1.69 to Rs 35.49. Oil & Gas Development Co, the biggest fuels explorer, added Rs 2.80 or 2.7 per cent to Rs 108.30.

Regulators this week eased the curbs on trading after volumes fell to the lowest in a decade. The restrictions, including a ban on short selling, were lifted with effect from July 14 by the securities commission after the exchange announced a Rs 50 billion fund to buy stocks. The fund has now raised Rs 12 billion, board member Chamdia said.

Pakistan stocks had reached an all-time high two months after parties opposed to President Pervez Musharraf prevailed in a parliamentary vote and said they would try to form a coalition government.