Hopes for growth push Pakistani stocks up

Karachi: Pakistan's benchmark stock index rose for the first time in four days on expectation faster economic growth will increase corporate profits. Oil & Gas Development Co. led the gains.

The Karachi Stock Exchange 100 Index added 214.62 points, or 1.6 per cent, to 14,099.65 at close. Oil & Gas Development, the country's biggest explorer, advanced Rs1.50, or 1.3 per cent, to Rs120.75.

Companies are reporting improved earnings as economic growth, forecast by the government to rise to 7.2 per cent this fiscal year from seven per cent last year, stokes demand for goods and services. Stock gains have been limited by concern over violence.

"The results are expected to support the market, despite the prevailing cautious stance because of the law and order situation before the elections," said Atif Malek, research analyst at JS Global Capital Ltd. in Karachi. "The declines in the previous few sessions and the decent payouts in the last few announcements attracted fresh buying today."

Pakistan Refinery Ltd., the nation's third-largest oil processor, yesterday posted net income of Rs950.3 million ($15 million) in the fiscal second quarter.