The trading frenzy in energy stocks followed comments by a senior US official who said Washington wanted to promote investment in Pakistan “particularly in the energy sector.” —File Photo

KARACHI: Energy stocks such as Oil and Gas Development Co Ltd (OGDCL) on Wednesday pushed the Karachi index to a one-and-a-half month high, ending up more than 2 per cent.

The trading frenzy followed comments by a senior US official who said Washington wanted to promote investment in Pakistan.

“The American government is active in promoting US investment,” said US Consul General William Martin while visiting the Karachi Stock Exchange (KSE), “particularly in the energy sector.”

The Karachi Stock Exchange’s benchmark 100-share index ended 2.15 per cent, or 242.55 points, higher at 11,547.71, its highest close since Dec 1.

Volume rose to 83.73 million shares, compared with 53.11 million shares traded on Tuesday.

OGDCL, the most heavily weighted company on the KSE-index, ended higher at its trading limit of 5 per cent, at 151.65 rupees. The index halts trade on stocks if they rise or drop 5 per cent.

In the currency market, the rupee ended firmer at 90.21/28 to the dollar, compared to Tuesday’s close of 90.30/35, amid lack of import payments.

The rupee fell to a record low of 91.28 to the dollar in intra-day trade last week.

Analysts say concerns about the country’s economic health, especially a weakening current account, are adding to pressure on the rupee.

The current account recorded a provisional deficit of $2.154 billion in the first six months of the 2011/12 fiscal year, compared with a surplus of $8 million in the same period last year, according to data from the State Bank of Pakistan.

The deficit is likely to widen further in the coming months because of debt repayments and a lack of external aid.

In the money market, overnight rates rose to 11.90 per cent, compared with Tuesday’s close of between 9.25 per cent and 9.75 per cent, because of tight liquidity in the interbank market.