Pakistani stocks gain 28 percent in 2010

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Pakistani stocks gain 28 percent in 2010​

*Pakistani stocks up 28 pct in 2010 vs 63 pct in 2009
* Average daily volume in 2010 lowest since 2001
* Foreigners bought shares worth a net $515 million in 2010​

By Sahar Ahmed

KARACHI, Dec 31 (Reuters) - Pakistan's main stock market closed out 2010 with a 28 percent annual gain, driven by foreign buying mainly in the energy sector, despite concerns about the country's macroeconomic indicators after summer floods.

But volume remained thin, partly because Pakistan was unable to complete its $11 billion loan programme with the International Monetary Fund.

It had to ask for a nine-month extension for the remaining two tranches amounting to over $3 billion.

"The market rallied 28 percent in 2010, supported by high foreign inflows despite the devastation caused by the floods," said Asad Iqbal, chief investment officer at Faysal Asset Management Ltd.

The August floods caused damages amounting to around $10 billion but foreigners were active buyers in the market and purchased shares worth a net $515 million. Market data for Dec. 31 will be released later in the day.

"With 40 percent of the KSE-index weighted towards the oil and gas sector and international oil prices rallying to over $91 a barrel, it wasn't entirely a surprise but the resiliency of corporate earnings was also a major contributor," Iqbal said

On the day the Karachi Stock Exchange's benchmark 100-share index .KSE ended 9 points or 0.07 percent lower at 12,022.46, after closing at a near 30-month high the previous day.

Pakistani stocks gain 28 percent in 2010 | Reuters