| Welcome to Global Village Space

Friday, June 14, 2024

Stocks recover over 200 points amid political turmoil

Despite the prevailing political situation, the stock market exhibited a quick recovery. The market around midday stood at 44,143.3 points after recording a 0.5 percent change since it opened.

The stock market on Tuesday 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. Despite the prevailing political situation, the stock market exhibited a quick recovery. The market around midday stood at 44,143.3 points after recording a 0.5 percent change since it opened. The bourse peaked at 44,289 points and recorded its lowest of the day of 43,784 points.

The previous close on 04 April was at 43,902 points after experiencing a contraction of around 2 percent. On Monday, the market plunged over 800 points in a broad sell-off as the heightened political tensions sparked uncertainty and unpredictability.

Political Turmoil

The National Assembly of Pakistan convened a session on the 03 of April to oust the sitting Prime Minister, Imran Khan, through a vote of no confidence. The session was adjourned by the deputy speaker Qasim Suri, shortly after the former minister for law and justice, Fawad Hussain, raised concerns over a regime change foreign conspiracy.

Read more: Aqeel Karim Dhedhi reveals reality of PTI’s debt

Minutes after the session was suspended, the Prime Minister came on television and notified the public that he had advised the President to dissolve the assemblies. Subsequently, the decision was announced that the President had accepted the advice, and the assembly would stand dissolved. As a result of the decision, all the ministers, with the exception of the Chief Executive -Prime Minister Imran Khan- were stripped of their ranks.

Following the dissolution of the National Assembly and dismissal of the no-trust motion against Prime Minister Imran Khan, Chief Justice of Pakistan Umar Ata Bandial took notice of the prevailing situation and ordered a suo moto notice.

Chief Justice of Pakistan Umar Ata Bandial said that “any orders and actions that Prime Minister Imran Khan and President Arif Alvi regarding the dissolution of the National Assembly shall be subject to the order of this court.” A five-member bench took up the matter, and the case is currently under review. The Chief Justice has ensured both parties that the court would issue a “reasonable order.”

Read more: Stock market down by 800 points as PM Khan dissolves assembly

Analysts believe that as the political situation settles down so will the stock market start to see a recovery. 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 as the rupee kept plummeting and surpassed the Rs 184 mark at the start of the month of April.