KARACHI: The Pakistan Stock Exchange (PSX) rebounded significantly by rising over 4,695.09 points when trading closed on Wednesday, following a steep drop a day earlier during major political clashes in the capital.
The benchmark KSE-100 index recorded its largest-ever single-day decline on Tuesday, plummeting 3,506 points, or 3.57 percent, amid political uncertainty triggered by a protest march on Islamabad led by supporters of former prime minister Imran Khan, demanding his release from jail.
Khan’s followers retreated overnight after security forces conducted a large-scale operation in Islamabad, clearing the main thoroughfare near parliament and key government buildings.
Subsequently, the PSX surged by 3,260.99 points in the morning, trading at 97,835.15 as of 11:10 AM. When trading ended, the stock market’s official website showed that the benchmark index rose by 4.96 percent to close at 99,269.25 points. It had closed on Tuesday at 94,574.16 points.
According to Shehryar Butt, portfolio manager at Dawson Securities, the stock market has been performing well lately due to improved macroeconomic indicators.
“The stock exchange came under pressure yesterday due to the political noise in the country,” he told Arab News. “The market stood on 99,700 points before it came down. Today, it is back on track since the political protest is over.”
A total of 1,057,104,968 shares were traded during the day as compared to 1,116,324,649 shares on Tuesday. The price of shares stood at Rs39.556 billion against Rs43.291 billion on Tuesday.
A total of 453 companies transacted their shares in the stock market, with 356 of them recording gains and 52 sustaining losses. The share price of 45 companies remained unchanged.
Pakistan’s Finance Minister Muhammad Aurangzeb said on Sunday that political protests had inflicted daily economic losses of Rs190 billion ($684 million), compounding the challenges faced by the nation’s struggling $350 billion economy.
Amid the unrest, Belarusian President Alexander Lukashenko is leading a 68-member delegation in Pakistan to discuss enhanced economic cooperation.
Both nations on Tuesday signed 15 memoranda of understanding aimed at boosting trade and investment ties, which the government hopes will help stabilize Pakistan’s economy.
The government has also accused Khan’s Pakistan Tehreek-e-Insaf (PTI) party of attempting to sabotage Lukashenko’s visit and impede the country’s path to economic recovery.
PTI lawmakers have said, however, they planned the protest before information about the Belarusian delegation’s visit was made public, dismissing the government’s allegation.
