The Pakistan Stock Exchange’s benchmark KSE-100 index opened in the green on Friday, continuing its momentum from the previous day and soaring more than 800 points in the first hour of trading, just hours after the government raised the prices of petroleum products to comply with International Monetary Fund (IMF) stipulations.
According to the PSX website, the index reached 43,422.88 at 10am — more than 2 per cent, the day’s highest so far — after gaining 880.29 points from the previous day’s close of 42,541.71.
The rally in the stock market is being attributed to the government’s move to end a months-old fuel price freeze, introduced by the previous PTI government in February.
“The market is reacting to the government’s move to withdraw fuel subsidies. It shows the government’s resolve to address teething issues in the economy and will pave the way for the IMF programme and other funding sources,” Saad Hashemy, executive director at BMA Capital Management, told Reuters.