Pakistan stocks close at record high

Pakistan stocks jumped 0.41 percent on Wednesday, closing at a record high as investors hope for a further slash in interest rates, dealers said. The Karachi Stock Exchange’s benchmark KSE-100 index gained 63.92 points, or 0.41 percent, to reach 15,712.21, eclipsing the previous highest 15,676.2, recorded on April 20, 2008. Pakistan shares have suffered heavy losses in the last four years due to global recession and domestic economic fragility. “A cut in the interest rate is expected on Friday, which has boosted the market and thrilled investors,” analyst Mohammad Sohail of Topline Securities brokerage told AFP. Pakistan is also scheduled to hold general elections next year, which have raised hopes among investors about the prospect of more effective government, Sohail said. Pakistan’s central bank slashed its benchmark interest rate in August from 12 to 10.5 percent to encourage private sector investment. The cut came despite forecasts that inflation, running at 10 percent, would miss the government’s target of 9.5 percent for the current fiscal year, which runs until June 30, 2013