Stocks rally 400 points on assurance of transparency in forex rate – Business

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index gained more than 400 points on Monday on the back of assurances by the army chief regarding ensuring transparency in the foreign exchange rate.

According to the PSX website, the index reached 45,730.16 points at 11am, up 0.92 per cent or 417.51 points from the previous close of 45,312.65 points.

Arif Habib Corporation Ltd analyst Ahsan Mehanti attributed today’s recovery to the army chief’s assurance over transparency in dollar rates and for bringing exchange companies into the tax net “played a catalyst role in the bullish activity”.

A day earlier, Chief of Army Staff (COAS) General Asim Munir met the business community at the Lahore Corps headquarters and assured them of bringing money exchanges under the purview of taxation, fostering transparency in dollar exchange and interbank rates.

The army chief also revealed during the meeting that task forces focused on economic matters and different sectors had been formed to bolster economic decision-making.

Mehanti added that Saudi Crown Prince Mohammed bin Salman’s potential visit to Pakistan this week for potentially investing in the Special Investment Facilitation Council also played a role in the PSX gains.

Meanwhile, Intermarket Securities’ Head of Equity Raza Jafri said the KSE-100 index was slowly recouping some of its losses as authorities attempted to shore up confidence in the economy, especially the foreign direct index and the rupee.

“Volumes are on the thinner side though, and a cautious stance still persists. It is possible that this watchfulness persists until more clarity emerges,” he added.

Ali Malik, CEO of First National Equity, also attributed the rally to the army chief’s meetings with businessmen in Karachi and Lahore.

“The COAS assured that all the attention was on the economy currently and measures are being taken which will come forth in the upcoming days,” he told Dawn.com.

Malik added that Gen Munir stressed increasing investments in the agricultural and mining sectors and expressed “zero tolerance” against smuggling.

“All these things have brought positivity and confidence among investors … you can call today’s gains course correction and we hope the market will remain stable,” he said.

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