Stocks gain 614 points on rupee appreciation

Published August 12, 2022
<p>This screenshot shows trading activity at the Pakistan Stock Exchange on Friday. — Photo via PSX website</p>

This screenshot shows trading activity at the Pakistan Stock Exchange on Friday. — Photo via PSX website

The benchmark KSE-100 index reversed its losses on Friday on the back of the rupee’s strong recovery and expected inflows.

According to the Pakistan Stock Exchange (PSX) website, the benchmark index gained 614.24 points, or 1.45 per cent, to close at 42,857.57 points.

On Thursday, stocks snapped a five-day rally due to political noise and a hike in the power tariff.

However, the stocks started reversing losses shortly after trading opened today. They reached the intraday high of 42,874.22 around 4:30pm.

Ahsan Mehanti of Arif Habib Corporation said stocks showed “sharp recovery” on the rupee’s appreciation and Finance Minister Miftah Ismail’s statement that the United Arab Emirates would invest $1 billion in the PSX.

Head of Research at Intermarket Securities Raza Jafri said the rupee’s continued strengthening and news of the letter of intent being received from the International Monetary Fund (IMF) are leading the stock market higher.

He was referring to a report published in The News which quoted finance ministry officials as saying that they expected an agreement on the letter of intent “any time soon”.

Earlier today, the local currency jumped by Rs3.28 against the dollar in the interbank market to reach Rs215.6.

Director of First National Equities Limited Amir Shehzad also shared a similar view. He said a bullish trend could be seen after the improvement in the rupee’s value, and investors were prioritising energy stocks.

Shehzad said the bullish momentum could continue into next week, adding that if the IMF tranche was received before August 19, it could mean the monetary policy would remain unchanged, which would, in turn, accelerate investment in the stock market.

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Spy games
Updated 02 Oct, 2022

Spy games

The audios leaked so far appear to have been carefully curated: they apply pressure but do not do major damage.
‘Geopolitical football’
02 Oct, 2022

‘Geopolitical football’

THE US-China rivalry is by all measures one of the globe’s most dangerous competitions for power and influence. ...
Fuel price reduction
02 Oct, 2022

Fuel price reduction

ISHAQ Dar is back; so are his signature policies. The reduction of a little over 5pc in fuel prices announced by him...
Untruths and politics
Updated 01 Oct, 2022

Untruths and politics

It would arguably be in the national interest for the Supreme Court to take up the cipher and settle the matter.
Farmers’ protest
01 Oct, 2022

Farmers’ protest

SEVERAL hundred farmers have converged on Islamabad for the last three days to protest against the soaring costs of...
Dasht-i-Barchi bombing
01 Oct, 2022

Dasht-i-Barchi bombing

ON Friday morning, Kabul’s Dasht-i-Barchi neighbourhood was rocked by a terrorist attack targeting an educational...