KARACHI: The Pakistani rupee surged by 5.4 percent to 120.84/122.45 per dollar on Monday, following domestic media reports over the weekend that China had agreed to provide $2 billion in loans.
A State Bank of Pakistan spokesman declined to comment on Monday about the media reports, which could not be confirmed.
Monday brought the first significant strengthening in years for the rupee, which had weakened more than 20 percent since December after four separate devaluations by the central bank.
Karachi-based brokerage Intermarket Securities said weekend publication of full results of the July 25 election may have helped sentiment, as did media reports of possible inflows from Saudi Arabia.
Officials from Imran Khan’s Pakistan Tehreek-e-Insaf (PTI), or Pakistan Movement for Justice, party said they were in talks with independents and at least one other political party to form a coalition government.
But the rupee’s advance might be short-lived, given Pakistan’s economic problems, analysts said.
“Short-term flows aside, it is difficult to see the (rupee) sustaining its pullback for long,” Intermarket Securities said in a note.
Many analysts expect Pakistan to turn to the International Monetary Fund for a bailout, which is expected to be in excess of $10 billion, according to local media reports.
Fawad Khan, head of research at BMA Capital, said the rupee surge could also be due to steps by the interim government to curb imports and new rules on documentation for buying more than $500.
He agreed the election results added to optimism on lending and imports.
“The market needs political stability, and that’s what it sees right now,” Khan said.
He added that the central bank so far had not acted to discourage the rupee’s rise, “but it might step in by tomorrow by start buying dollars from open market.”
The State Bank of Pakistan is the most influential player in the thinly-traded local foreign exchange market and controls what is widely considered a managed float system.
Pakistani rupee strengthens 5.4% on reports of China loan
Pakistani rupee strengthens 5.4% on reports of China loan
- State Bank of Pakistan declines comments on reports
- Rupee’s surge unlikely to be sustained — brokerage
Closing Bell: Saudi main index closes higher at 10,596
RIYADH: Saudi equities closed higher on Tuesday, with the Tadawul All Share Index rising 43.59 points, or 0.41 percent, to finish at 10,595.85, supported by broad-based buying and strength in select mid-cap stocks.
Market breadth was firmly positive, with 170 stocks advancing against 90 decliners, while trading activity saw 161.96 million shares change hands, generating a total value of SR3.39 billion.
Meanwhile, the MT30 Index closed higher, gaining 6.52 points, or 0.47 percent, to 1,399.11, while the Nomu Parallel Market Index edged marginally lower, slipping 3.33 points, or 0.01 percent, to 23,267.77.
Among the session’s top gainers, Al Masar Al Shamil Education Co. surged 9.99 percent to close at SR26.20, while Saudi Cable Co. jumped 9.98 percent to SR147.70.
Cherry Trading Co. rose 4.18 percent to SR25.44, and United Carton Industries Co. advanced 4.09 percent to SR26.46.
Al Yamamah Steel Industries Co. also posted solid gains, climbing 4.07 percent to end at SR32.70.
On the downside, Emaar The Economic City led losses, slipping 3.55 percent to SR10.32, followed by Derayah REIT Fund, which fell 2.92 percent to SR5.31.
Derayah Financial Co. declined 2.13 percent to SR26.62, while United International Holding Co. retreated 1.96 percent to SR155.20, and Gulf Union Alahlia Cooperative Insurance Co. eased 1.92 percent to SR10.70.
On the announcements front, Red Sea International Co. said it signed a SR202.8 million contract with Webuild S.P.A. to provide integrated facilities management services for the Trojena project at Neom.
The agreement covers operations and maintenance for the project’s Main Camp and Spike Camp, including accommodation and housekeeping, catering, security, IT and communications, utilities, waste management, fire safety and emergency response, as well as other supporting services.
The contract runs for two years, with the financial impact expected to begin in the first quarter of 2026. Shares of Red Sea International closed up 0.99 percent at SR34.74.
Al Moammar Information Systems Co. disclosed that it received an award notification from Humain to design and build a data center dedicated to artificial intelligence technologies, with a total value exceeding 155 percent of the company’s 2024 revenue, inclusive of VAT.
The contract is expected to be formally signed in February 2026, underscoring the scale of the project and its potential impact on the company’s future revenues.
MIS shares ended the session 2.82 percent higher at SR156.70, reflecting positive investor sentiment following the announcement.
