Stocks rise 531 points as rupee recovers, oil prices dip

Published September 26, 2022
<p>A snapshot of trading activity at the Pakistan Stock Exchange on Monday. — Photo via PSX website</p>

A snapshot of trading activity at the Pakistan Stock Exchange on Monday. — Photo via PSX website

<p>A snapshot of trading activity at the Pakistan Stock Exchange on Monday. — Photo via PSX website</p>

A snapshot of trading activity at the Pakistan Stock Exchange on Monday. — Photo via PSX website

Shares at the Pakistan Stock Exchange (PSX) opened the week on a positive note, with analysts citing the rupee’s strong recovery buoyed by a decline in international oil prices as well as Ishaq Dar’s upcoming appointment as the finance minister behind the rally.

The benchmark KSE-100 index gained 531.33 points, or 1.31 per cent, to close at 41,151.54 points.

The index saw an intraday high of 576.42 points, or 1.42pc, at 3:30pm.

Arif Habib Corporation’s Ahsan Mehanti said the PSX saw bullish activity during early trade on a stronger rupee and the upcoming appointment of a new finance minister which would “likely stabilise economic uncertainty”.

The Pakistani rupee appreciated by Rs2.63 against the dollar on Monday.

Prime Minister Shehbaz Sha­rif is set to return to Pakistan today, accompani­ed by Dar who will take charge as finance minister.

On Sunday, senior PML-N leaders met Miftah Ismail, who handed in his resignation. A statement released after the meeting confirmed that Nawaz Sharif and PM Shehbaz had nominated Dar as the finance minister.

First National Equities Limited Director Amir Shehzad agreed with Mehanti’s view, saying the primary reason for the index’s gains was the sentiment that developed in anticipation of Dar’s return and the hope that the situation would come under control. Consequently, investors became confident, he said.

Shehzad added that the cement sector has the highest potential to add points to the index.

Meanwhile, Head of Research at Intermarket Securities, Raza Jafri, said the KSE-100 was recovering on a combination of factors including lower oil prices, the apparent willingness of the West to listen to Pakistan’s debt restructuring requests, and the perception that Senator Dar may be able to bring the PKR under control.

No adverse development in politics over the weekend is also helping sentiments, he added.

PM Shehbaz had appealed to the world and rich nations for immediate debt relief last week in view of the devastating floods that have caused estimated losses of $30 billion.

He had told Bloomberg TV during his visit to New York that Pakistan had taken up the debt relief issue with UN Secretary General Antonio Guterres and world leaders.

“We have spoken to European leaders and other leaders to help us in Paris Club, to get us a moratorium,” he said, referring to rich nation creditors.

The country of 220 million would not be able to stand on its feet, Shehbaz added, “unless we get substantial relief”.

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

Retracted offer
04 Dec, 2022

Retracted offer

WITH so many U-turns under his belt, it was hardly surprising when on Saturday, PTI chairman Imran Khan decided to...
Embassy attack
Updated 04 Dec, 2022

Embassy attack

The Taliban should have enhanced the existing security arrangements.
Smog season
04 Dec, 2022

Smog season

FOR the past week, major cities of Pakistan have been among the top most polluted cities in the world. Lahore ranked...
Fleeting good news
Updated 03 Dec, 2022

Fleeting good news

Indeed, there is no other option to get out of the economic mess we have created in the last few years.
Battle for spoils
03 Dec, 2022

Battle for spoils

THE spectacle playing out inside a London courtroom shines a light on the struggle for control of the assets of the...
CM Bizenjo’s complaint
03 Dec, 2022

CM Bizenjo’s complaint

BALOCHISTAN Chief Minister Mir Abdul Qudoos Bizenjo’s claim that his province is facing a financial crunch due to ...