The Pakistan Stock Exchange (PSX) began the week on a bright note, with analysts attributing the surge to the rupee’s robust rebound fueled by a decrease in international oil prices and Ishaq Dar’s anticipated appointment as finance minister.
The KSE-100 index gained 531.33 points, or 1.31 percent, to reach 41,151.54 points at the closing bell.
At 3:30 p.m., the index reached an intraday high of 576.42 points or 1.42 percent.
According to Ahsan Mehanti of Arif Habib Corporation, the PSX had positive activity during early trading due to a higher rupee and the impending appointment of a new finance minister, which “would likely stabilize economic uncertainties.”
On Monday, the Pakistani rupee gained Rs2.63 against the dollar.
Today, Prime Minister Shehbaz Sharif will return to Pakistan, accompanied by Dar, who will assume the position of finance minister.
On Sunday, prominent leaders of the PML-N met with Miftah Ismail, who tendered his resignation. A statement issued following the meeting confirmed that Nawaz Sharif and Prime Minister Shehbaz had nominated Dar for the position of finance minister.
Director of First National Equities Limited Amir Shehzad concurred with Mehanti, stating that the critical cause for the index’s rise was the anticipation of Dar’s return and the optimism that the situation would be brought under control. Consequently, he claimed, investors gained confidence.
Shehzad noted that the cement industry has the most potential to increase the index’s value.
Raza Jafri, the head of research at Intermarket Securities, stated that the KSE-100 was recovering due to a combination of factors, including lower oil prices, the West’s apparent willingness to listen to Pakistan’s debt restructuring requests, and the perception that Senator Dar may be able to rein in the PKR.
He noted that the lack of hostile political development over the weekend improved attitudes.
Last week, Prime Minister Shehbaz appealed to the international community and wealthy nations for emergency debt relief in light of the terrible floods that have inflicted estimated losses of $30 billion.
During his visit to New York, he informed Bloomberg TV that Pakistan had discussed debt relief with UN Secretary-General Antonio Guterres and world leaders.
“We have asked European and other world leaders to help us obtain a moratorium from the Paris Club,” he said, referring to wealthy nation creditors.
Shehbaz stated, “unless we receive sufficient relief, the 220 million-person nation will be unable to stand on its own.”