| Updated at: 1900 PST, Friday, January 07, 2011|
KARACHI: Karachi Stock Exchange (KSE) ended at their highest point since June 2008 on Friday, led by energy and fertiliser stocks, after the government reversed an unpopular fuel price hike in a bid to woo back a wayward coalition partner, the Muttahida Qaumi Movement (MQM).
Prime Minister agreed to roll back a 9 percent increase in fuel prices on Thursday, leading its coalition partner MQM to rejoin the majority in parliament on Friday.
The Karachi Stock Exchange's benchmark 100-share index ended 0.53 percent, or 65.57 points, up at 12,389.04, its highest close since June 2008, on turnover of 151.75 million shares.
"Positive activity was witnessed as political uncertainty eased after the government reversed its decision," said Ahsan Mehanti, director at Arif Habib Investments Ltd.
Dealers said investors bought energy and fertiliser sector stocks on expectations of healthy profits for the quarter ended Dec. 31. Results are due to be announced in the coming weeks.
In the currency market, the rupee ended flat at 85.70/75 to the dollar, unchanged from the previous day's close, amid a lack of import payments. But dealers expect pressure on the local unit following an increase in international oil prices.
In the money market, overnight rates fell to between 11.25 percent and 11.50 percent, compared with Thursday's close of 13.90 percent, amid increased liquidity in the interbank market, dealers said.