Stocks gain over 346 points over hopes of political settlementBusiness
Shares at the Pakistan Stock Exchange (PSX) were in the green on Tuesday with the benchmark KSE-100 index up 346.72 points, or 0.83 per cent, around 1:08 pm.
Salman Naqvi, head of research at Aba Ali Habib Securities, noted that the market had been performing well today because “political unrest” had halted for the time being.
He also attributed the positive sentiment to a fall in crude oil and coal prices in the international market.
“With the end of the sit-in outside the Supreme Court, there is hope that the political parties can reach a consensus in the one-week time given by the courts,” Naqvi said.
He explained that the reduction in coal prices internationally had boosted the cement sector while petrol price in the country had also seen a downward revision last night as the government passed on the impact of falling international prices to the citizens.
Naqvi also referred to a recent statement by the IMF, in which the money lender had clarified that it had not asked Pakistan to raise $8 billion in fresh financing, saying it had raised hopes that the country may be able to avert default.
Ali Malik, CEO of First National Equity, said the market was gaining strength on the assumption that political turmoil in the country would be resolved.
He said even though the market was rising, activity levels were low as reflected by the trading volume, adding that the market could take a few days to determine its direction depending on the political situation.