Shares at the Pakistan Stock Exchange (PSX) began the week on a bullish note, with analysts attributing the rally to the rupee’s robust rebound supported by a drop in global oil prices as well as the impending appointment of Ishaq Dar as the country’s next finance minister.
By 10:46 a.m., the benchmark KSE-100 index had risen 411 points, or 1.01 percent, to 41,031 points.
The PSX experienced optimistic activity in early trade, according to Ahsan Mehanti of Arif Habib Corporation, as a result of a higher rupee and the impending nomination of a new finance minister, who would “likely stabilise economic instability.”
At 10 a.m., the Pakistani rupee was trading at Rs235.5 per dollar, up Rs4.15 from earlier today.
Shehbaz Sharif, who will take over as finance minister, and Dar are scheduled to return to Pakistan today.
Senior PML-N officials met Miftah Ismail on Sunday after he submitted his resignation. Dar’s appointment as finance minister was announced by Nawaz Sharif and PM Shehbaz, according to a statement issued following the meeting.
Amir Shehzad, a director at First National Equities Limited, concurred with Mehanti’s assessment, stating that the sentiment that built in anticipation of Dar’s return and the optimism that the situation would get under control was the main driver of the index’s advances. Investor confidence increased as a result, he claimed.
The industry with the greatest potential to raise the index’s point total, according to Shehzad, is cement.
Raza Jafri, Head of Research at Intermarket Securities, stated that the KSE-100 was recovering as a result of a number of factors, including lower oil prices, the West’s apparent willingness to consider Pakistan’s requests for debt restructuring, and the belief that Senator Dar might be able to control the PKR.
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”.