Despite predictions of instability due to election-related uncertainty, the Pakistani rupee (PKR) steadied off its six-year lows and Pakistani shares rose over 3 percent on Tuesday, February 19, Reuters reports.

While fears about the prospect of upheavals and more violence lingered after allies of President Pervez Musharraf lost big time, investors are glad that it is very unlikely for the opposition to question the validity of the election results and call for street protests. Investors had long feared street clashes and armed confrontations.

According to Sakib Sherani, one of ABN AMRO Pakistan's chief economists, the markets are seeing a rally now that the political uncertainty is over. He also explained the Pakistani markets are anticipating a lot of foreign investors who had long been waiting for the elections to come to a close. They are expected to leave the sidelines and jump in.

The Karachi Stock Exchange 100 index climbed 3.1 percent at 14,797.47 points, a bit over 100 points off its record high in October (Learn how does the stock market work). The rupee remains steady after diving to its lowest level in six years last week. For more information on Pakistan, read Beauty Amidst Violence in Pakistan.