Pakistan’s (KSE100) benchmark stock index rose to a 13-month high on optimism that a meeting of world leaders including U.S. President Barack Obama intended to offer support to the nation will boost confidence in its economy.
Pakistan PTA Ltd., which produces pure terephthalic acid, the raw material used to make polyester fiber, jumped 15 percent to 6.2 rupees, its highest since Oct. 26, 2007, ahead of the Friends of Democratic Pakistan meeting in New York today.
Nestle Pakistan Ltd., (NESTLE) the No. 1 maker of dairy products, gained 5 percent to 1,160 rupees. Pakistan Petroleum Ltd., (PPL) the nation’s biggest gas producer, added 4.3 percent to 202.33 rupees. United Bank Ltd., the No. 3 lender by assets, advanced 3.5 percent to 60.1 rupees.
The benchmark Karachi Stock Exchange 100 Index gained 277.01, or 2.9 percent, to 9,713.83, the highest level since Aug. 25, 2008, and the best performance today among 91 major indexes tracked by Bloomberg. The gauge has risen 66 percent this year after falling 58 percent in 2008, the first annual drop in seven years.
“The Friends of Democratic Pakistan meeting is the main reason behind the buoyant mood,” said Umair Siddique, deputy head of research at Elixir Securities Pakistan Pvt. in Karachi. “Investors expect a positive outcome and that is driving sentiment.”
Obama, Pakistan President Asif Ali Zardari and British Prime Minister Gordon Brown will co-chair the meeting, a statement issued by the White House yesterday said.
The meeting will discuss international support for the people and government of Pakistan and will address how to deal with humanitarian challenges, achieve economic stability and improve security, the report said.
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