Pakistan stocks up on foreign buying despite bombs

Pakistan stocks up on foreign buying despite bombs


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KARACHI, April 5 (Reuters) - Pakistani stocks ended higher on Monday to close at a 19-month high as investors shrugged off militant violence in the country's northwest, thanks to strong foreign interest, dealers said.

The Karachi Stock Exchange's benchmark 100-share index .KSE ended 0.30 percent, or 31.33 points, higher at 10,447.84.

It was the highest close for the KSE-100 since Aug. 20, 2008, when it ended at 10,525.99. The index touched an intraday high of 10,491.82 points.

Volume rose to 221.95 million shares from 205.11 million traded on Friday.

"There was some concern in the market after the attacks, especially the one in Peshawar, which pulled the index down in the negative zone for some time," said Sajjad Mankani, associate director at brokerage BMA Capital Management.

Militants attacked the U.S. consulate in the city of Peshawar but were held off by security forces hours after a suicide bomber killed 38 people elsewhere in the northwest, officials said. [ID:nSGE63409N]

The attacks underscore the danger posed by militants in nuclear-armed U.S. ally Pakistan after a year of military offensives which have dealt the Islamists significant setbacks.

The KSE-100 index fell as low as 10,403.83 after the attacks.

"However, the market quickly shrugged off the violence primarily because foreign investors are pretty active despite all the concerns, and are leading the sentiment," said Mankani. Continued...