The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index witnessed a significant surge of 390 points on Monday. This rally was a direct result of the army chief’s assurances about ensuring transparency in foreign exchange rates.
Closing at 45,707.42 points, up from its previous close of 45,312.65 points, the PSX index displayed strong bullish activity following the army chief’s statements. The army chief, General Asim Munir, met the business community and assured them of bringing exchange companies under the purview of taxation, promoting transparency in dollar exchange, and interbank rates. This announcement was well-received by investors, leading to the surge in stock prices.
The market also reacted positively to the news of the potential visit of Saudi Crown Prince Mohammed bin Salman to Pakistan this week. The prince’s visit could result in significant investments in the Special Investment Facilitation Council, further boosting investor confidence.
Experts in the field have also shared their insights on the market’s upward trend. Ahsan Mehanti, an analyst at Arif Habib Corporation Ltd, attributed the rally to the army chief’s assurance of transparency in dollar rates and efforts to bring exchange companies into the tax net. Raza Jafri, Head of Equity at Intermarket Securities, mentioned that authorities’ actions to regain confidence in the economy have contributed to the KSE-100 index’s recovery. Although volumes remain on the lower side, there is cautious optimism in the market.
Ali Malik, CEO of First National Equity, reaffirmed the positive effect of the army chief’s meetings with businessmen in Karachi and Lahore. Gen Munir emphasized the need for increased investments in the agricultural and mining sectors and expressed a strong stance against smuggling. These developments have instilled positivity and confidence among investors.
Overall, this surge in the stock market can be seen as a course correction, and it is anticipated that the market will remain stable following these positive developments. The efforts to ensure transparency in forex rates and enhance economic decision-making have significantly boosted investor confidence, which bodes well for Pakistan’s economy.