Bulls took control of the benchmark KSE-100 index for the second consecutive trading day as it gained over 1,400 points during the early hours of the day as the market reacted to Saturday’s political drama.
The bourse made strides right from the opening bell, with KSE-100 gaining over 1,400 points and rising above 45,000 within the first 10 minutes.
At the time of filing this report, the benchmark index was up by 1,461 points and stood at 45,905 points at 12:00 PM.
JS Global’s Assistant Vice President, Muhammad Waqas Ghani, told ProPakistani,
The stock market reacted positively today over clarity on the political front after the success of no-confidence motion in the national assembly. The rupee has also shown recovery on the other hand where it is trading at a PKR/USD of 183.15 in the interbank. Recent measures of a 2.5% policy rate hike and adjustments including cash margin requirement for imports and an increase in ERF rate have also provided a respite to the otherwise volatile money market. Going forward, market trends will primarily depend on key macro indicators,
Today’s intraday surge has been notably fueled by a dramatic week of political drama that ended with Prime Minister Imran Khan being ousted from power after losing a no-confidence vote on Saturday.
The vote was held past midnight after opposition benches brought a motion against him, following days of political uncertainty.
Also, the market is reacting to the State Bank of Pakistan’s (SBP) interest rate hike from Thursday, which was raised by 250 basis points to 12.25 percent from 9.75 percent, the highest one-shot increase since the 300 bps in October-1996.
Last week, the PSX remained under pressure due to political turmoil following the filing of a no-confidence vote against Prime Minister Imran Khan, and the historic rupee slide. Additionally, the benchmark KSE-100 fell by 707.53 points week on week last week, closing at 44,444.58 points.
This is an intraday market update.
