Karachi: Pakistan's benchmark stock index rose to a five-week high after the Securities and Exchange Commission said it will evaluate a plan tomorrow for investors to trade shares using money borrowed from brokers.
The Karachi Stock Exchange 100 Index climbed 2.2 per cent to 10,091.25, the highest since August 6. The commission's board will meet today to discuss a proposal to allow margin trading, spokesman Mohammad Rab Nawaz Awan said yesterday.
The exchange's board proposed introducing margin trading in a report to the commission in July, and met with the regulator on August 31. The practice was abolished when price curbs were imposed in 2008, following the index's biggest slump in a decade.
"It will bring life to the market," Dawood Jan Mohammad, a member broker at the exchange, said.
