Stocks recover 1,195 points amid support fund speculation

Updated May 22, 2019

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The rise was linked to reports that a market support fund is being considered for stabilisation of the Pakistan Stock Exchange by the government. — AFP/File
The rise was linked to reports that a market support fund is being considered for stabilisation of the Pakistan Stock Exchange by the government. — AFP/File

The benchmark KSE-100 index recovered 1,195.04 points or 3.57 per cent of its volume at the close of trading on Wednesday.

Trading opened at 33,618.29 points, with the market remaining mostly on an upward trajectory throughout the day.

The rise was linked to reports that a market support fund is being considered for stabilisation of the Pakistan Stock Exchange by the government. Additionally, state-owned institutions have been purchasing shares in the market, DawnNewsTV reported.

As investor confidence plummeted, Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh met stockbrokers in Karachi on May 17 in and listened to their complaints for an hour and a half.

The brokers had asked the finance adviser to set up a market support fund reminiscent to that of 2008 to help rein in the continuous decline being seen on the trading floor.

Although brokers told media contacts that Shaikh had agreed to the idea of creating $20 billion fund, a PSX press release stated "it was also recommended that keeping in view the attractive valuations at the PSX a market support fund may be considered".

The value of the rupee rose against the dollar today, gaining 35 paisas to touch Rs151.9 in the interbank market and 50 paisas to reach Rs153 in the open market, DawnNewsTV reported.