KSE-index up 3.7 percent in morning trade

Shares in Karachi stock market rallied on Thursday as the country’s political crisis appeared to stabilise.

The Karachi Stock Exchange (KSE) benchmark 100-share index jumped 3.7 percent in morning trade after electoral authorities declared a six-week delay to general elections and the president said Britain would help with investigations into last week’s martyrdom of former prime minister Benazir Bhutto.

At 0530 GMT, the index was up 502.22 points at 13,855.60 on turnover of 51 million shares.

“Apart from the market bouncing back after an almost 10 percent fall, investors have become optimistic as President Musharraf has given a clear-cut time frame for elections and met most of the demands of the opposition parties,” said Sajid Bhanji a dealer at brokers Arif Habib Ltd.

A delay to elections, originally scheduled for Jan. 8, was widely expected but investors had feared that a lengthy or indefinite postponement could have led to new political unrest and a possible return to street violence.

The commission declared a new date of Feb. 18.

Opposition leader Benazir’s martyred, in a gun-and-bomb attack at a campaign rally on Dec. 27, unleashed a wave of violence on the streets and selling in the market. At Wednesday’s close, the KSE index had shed 9.6 percent since her martyred.

Authorities blamed al Qaeda for her murder, but controversy over their official version of events led to demands from Benazir’s party for an international inquiry.

Dealers said crude oil leaping to a lifetime high of $100 a barrel on Wednesday provided further support to Pakistani energy stocks, the heaviest-weighted sector in the KSE.

“I think if foreign investors look for the long term, there is value,” said Tariq Choudhry, head of sales at Invisor Securities.

Among the most active shares, Oil and Gas Development Co Ltd rose 4.60 rupees to 118, outsourcing firm TRG Pakistan 0.95 rupees to 14.35 and Bank of Punjab 2.90 rupees to 97