The PSX gains 1,700 points to close at 46,144 points while the Rupee gains 0.96% against the US Dollar
A stockbroker talks on the phone during a trading session at the Pakistan Stock Exchange (PSX) in Karachi. The Pakistan Stock Exchange (PSX) KSE 100 Index climbed 3.83% or 1,700.38 points, closing at 46,144.96 points from 44,444.58 points on the last business day. This is the highest jump since April 2020. — AFP archive photo
Pakistan’s stock market and the rupee rallied strongly on Monday on hopes that new Prime Minister Shehbaz Sharif’s talks with the International Monetary Fund (IMF) will bring political stability to the country.
The Pakistan Stock Exchange (PSX) KSE 100 Index climbed 3.83% or 1,700.38 points, closing at 46,144.96 points from 44,444.58 points on the last business day. This is the highest jump since April 2020.
The rupee also rallied strongly against the US dollar in the interbank market, posting gains of 0.96% to 182.93 from 184.68 on Friday. The Rupee recorded gains of Rs1.75 against the US Dollar as market participants expect the political unrest to ease following the election of the new government in the country.
The Pakistani currency has maintained a downward trend over the past 11 months, losing 20.13%, or 30.66 rupees so far, from the record high of 152.27 rupees recorded in May 2021.
“With a further rise of 1.9% over the past two days, the Pakistani Rupee has depreciated by 16.11% or Rs 25.39 since the start of the current financial year on July 1, 2021,” according to data released by the State Bank of Pakistan (SBP), central bank.
Focus on negotiations with the IMF
SBP Governor Reza Baqir said the country’s engagement with the IMF remains strong and the loan from the fund will unlock funds from more sources.
“The IMF’s request to raise fuel and electricity prices is proving difficult in the current political environment,” Baqir said in an interview with Bloomberg, while citing political instability as the one of the main reasons for the rise in rates and the fall of the rupee.
Samiullah Tariq, head of research at Pakistan Kuwait Investment, said the new government should restart talks to immediately reinstate the IMF program to ensure an adequate level of foreign exchange reserves to give market confidence.
“The new government should remove fuel and electricity subsidies and withdraw the amnesty program,” Tariq said. Khaleej times Monday.
He also suggested to the new leadership of the coalition government to ensure an adequate level of fuel stocks to avoid a power shortage before the summer month.
Shares worth Rs 13.36 billion traded
The Pakistan Stock Exchange traded 557,672,451 shares on Monday against 227,885,722 shares the day before. It also traded shares worth 13.362 billion rupees on the stock exchange, against 6.785 billion rupees traded last Friday trading day.
As many as 386 companies traded shares on the stock market, 330 of them recorded gains and 45 suffered losses, while the share price of 11 companies remained unchanged.
WorldCall Telecom, with a volume of 140,797,500 shares, remained one of the top traded companies. Cnergyico PK, with a volume of 40,149,171, and Fauji Cement with a volume of 18,176,500 were also among the top trading companies.