The stock market further got a boost from rising optimism, especially from the prospects that the provision of the IMF deal was near.
Positive factors such as a decrease in interest rates and a drop in global oil prices played a role in driving the market’s upward trend.
The Pakistan Stock Exchange (PSX) experienced a remarkable jump of 999 points, surpassing the 80,000-point threshold.
During trading, the benchmark KSE 100 Index saw an increase of 805 points, reaching 79,822 points.
The market analysts are attributing this sharp rise to immense optimism on the IMF deal that is expected to steady the Pakistan economy. Further, the decline in international oil price is considered a blessing to the ailing economy of the country since it brings along lesser inflation rates and better conducive business environment.
Investors are optimistic that these positive factors will extend their performance in the subsequent weeks, with still higher anticipations in case the IMF agreement is finally met.
The restoration of the 80,000-point threshold is indicative of higher optimism in Pakistan’s fiscal outlook due to positive transformation in key economic parameters.
Dollar rate
On the other hand, despite positive developments, the Pakistani rupee continued to weaken against the US dollar in the currency market.
Dealers reported that the dollar’s price dropped by 25 paisa in the interbank market, decreasing to Rs 278.20 from its previous rate of Rs 278.44.
The dollar saw a small drop of 10 paisa in the open market, and was traded at Rs 280.85. This is the fourth day in a row that the dollar has decreased in value in the interbank market.
Malik Bostan, the chairman of the Exchange Companies Association of Pakistan E Cap noted that although the dollar is currently on a decline the full impact of the recent interest rate cut will be felt by Monday. He cautioned that if the government secures relief in interest payments the rupee could experience further depreciation in the days ahead.
