On Friday, the benchmark KSE-100 index reversed its losses due to the rupee’s robust recovery and anticipated inflows.
According to the website of the Pakistan Stock Exchange (PSX), the benchmark index rose 386.33 points, or 0.91 percent, to 42,629.66 points at 12:26 p.m.
On Thursday, political turmoil and an increase in the power tariff ended a five-day surge in the stock market.
However, the markets began reversing their losses shortly after the opening of trading today.
The rupee’s rise and Finance Minister Miftah Ismail’s announcement that the United Arab Emirates will invest $1 billion in the PSX, according to Ahsan Mehanti of Arif Habib Corporation, led to a “rapid recovery” of the stock market.
Raza Jafri, head of research at Intermarket Securities, stated that the sustained strengthening of the rupee and news of the International Monetary Fund’s (IMF) letter of intent are driving the stock market upward.
He was alluding to an article in The News in which finance ministry officials were quoted as saying they anticipated an agreement on the letter of intent “very soon.”
The local currency rose by Rs3.28 against the dollar on the interbank market earlier today, reaching Rs215.6.
Amir Shehzad, director of First National Equities Limited, echoed the same opinion. After the improvement in the rupee’s value, he predicted a bullish trend, and investors were prioritizing energy stocks.
Shehzad stated that the bullish momentum may continue into the following week, adding that if the IMF tranche was received before August 19, it could indicate that the monetary policy would remain unaltered, hence accelerating stock market investment.
