Business | Markets
Telecom firm fuels stock market rise
Pakistan's stocks rose for a third day after investors judged the biggest phone service provider as inexpensive. Pakistan Telecommunications Co paced gains.
- Bloomberg
- Published: 22:59 January 29, 2009
Karachi: Pakistan's stocks rose for a third day after investors judged the biggest phone service provider as inexpensive. Pakistan Telecommunications Co paced gains.
The Karachi 100 Index climbed 0.8 per cent to 5,183.22 at the 3.30pm local-time close. Thirty-six of the gauge's 100 constituents advanced, while 42 fell and 22 were unchanged.
"Pakistan Telecom's share price is at a very attractive level and that's what triggered buying," said Abrar Hussain, a research analyst at First Capital Equities Ltd, in Karachi.
Pakistan Telecom is trading at 5.1 times estimated earnings, compared with a high of 18.5 in July 2007, according to data compiled by Bloomberg. The stock gained seven per cent to Rs14.75 (Dh0.69).
Banking shares also rose after the central bank said this week banks would no longer have to put aside cash for the full value of delinquent loans.
"Banks turned positive in the last two days after the central bank's supportive measure," said Mohammad Imran Khan, an analyst at First Capital Equities Ltd in Karachi.
MCB Bank, the biggest by market value, gained five per cent to Rs90. National Bank of Pakistan, gained five per cent to Rs53.88.
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