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Pakistan stock markets zoom to record high of 21,500

Press Trust of India  |  Karachi 

Pakistani surged by over 500 points today to a record high of 21,500 points on heavy buying by overseas investors, amid reports government plans to sell treasury bills worth USD 5 billion to pare debt.

The Stock Exchange's benchmark 100-share index closed 2.59 per cent, or 542.86 points, higher at 21,501.72.

"The market was buoyed by reports today that the new government plans to sell USD 5 billion in treasury bills to pay off a chain of debt that has led to power crisis and is affecting the economy," Sohail Ahmed, a market analyst, said.

The new government is planning to pay off the debt within the first 100 days in power as it believes the economy will only be lifted and foreign investments will grow if the power shortage crisis is dealt with immediately, said experts.

In Lahore, Pakistan's Prime Minister-designate pledged that the incoming PML-N government would make efforts to overcome power problem as soon as possible.

The rally came after two straight days of decline.

On the previous two trading days, the saw profit-booking after a wave of massive buying saw investors betting big that the crisis-ridden economy would revert back to high growth under Sharif, set to become premier for an unprecedented third term.

The Pakistani rupee also remained stable on Tuesday ending in the market on 98.43/98.49 against the US dollar.

Sharif, himself an industrialist and co-owner of diversified multi-million dollar conglomerate Ittefaq group, has said that revival of economy would be among his top priorities. He is seen by many in as someone who can fix the country's bleeding economy.

There are only 569 listed companies on the Stock Exchange, as against about 5,000 in the Indian stock market, where total investor wealth is close to Rs 70 lakh crore.

The number of companies listed on KSE has come down in the past few years, from more than 650 in 2009, as the country's economy has been struggling amid a turbulent political scene.

However, a clear mandate in the just-held historic polls is expected to revive the economic activities and therefore the stock markets as well.

First Published: Tue, May 28 2013. 20:37 IST
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