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Friday, June 14, 2024

Pakistan’s stock market surges 1500 points

The market opened at 44,444 and recorded its highest of 46,023 before the clock struck 12. The current market index at midday stands at 45,975.

As the end to the political crisis in the country seems imminent and as lawmakers start to gather in the assembly to elect the new prime minister, the stock market on Monday registered a relief.

Despite the country effectively having no ministers at present, the stock market on Monday, recording a 3.4 percent increase, gained 1531 points. The market opened at 44,444 and recorded its highest of 46,023 before the clock struck 12. The current market index at midday stands at 45,975.

PM Khan removed

An hour past midnight on Sunday, the opposition successfully passed the no-trust motion against Prime Minister Imran Khan with 174 in favor of the motion. The announcement was unofficially announced by Maryum Aurangzeb, only to be verified by the sitting speaker Ayaz Sadiq.

Read more: Pakistan Stock Market registers highest profit in 10 years

Following the announcement Imran Khan officially became the first-ever Prime Minister of the country to be ousted through a vote of no confidence. Prior to this, no-confidence resolutions were tabled against Shaukat Aziz and Benazir Bhutto in 2006 and 1989, respectively; however, both of them survived the motion.

Market trend

It is petinent to mention, the stock market on 5th March recovered 241 points after its nose dive on 04 April, a day after the Prime Minister announced that he had advised the President to dissolve the assemblies. On 5th, the bourse peaked at 44,289 points and recorded its lowest of the day of 43,784 points.

Read more: PTI government economic achievements

Analysts believe that the trend of recovery in the market is going to continue, especially after the new prime minister is elected by the assembly and as political stability returns to the country. The political situation also took its toll to devalue the rupee. During the month of March, the rupee had depreciated by 3.3 percent against the dollar. There was no respite for the falling currency except on March 24, when it closed flat compared to previous days. As the rupee kept plummeting, it surpassed the Rs 189 mark at the start of the month of April.

Amidst the return of political stability, the Pakistani currency has also appreciated. The interbank rate of the US dollar against PKR has also dropped to 182.76 today after surpassing all records on 07 April when it started selling at above Rs. 189 against a dollar during the intraday trading.

Netizens have taken to Twitter and attribute this recovery to Imran Khan’s removal from power. One social media handler tweeted that “Dollar Down to Rs. 182.9, Stock Market up 1400 points. This is what happens when the incompetent and corrupts are sent home democratically!”