Shares jump over 1,000 points on exchange rate cap removal, IMF revival hopes – Business

Shares at the Pakistan Stock Exchange (PSX) continued to rally on Thursday, with the benchmark index crossing the key 40,000 points mark.

The KSE-100 index jumped 1020.82 points, or 2.57 per cent, to reach 40,805.72 points at 1:17pm.

“Stocks showed strong recovery in the earnings season on institutional interest in scrips across the board after the government’s decision to make tough decisions to seek IMF (International Monetary Fund) program revival,” said Arif Habib Corporation’s Ahsan Mehanti.

He added that investor speculation over likely help from the United States to revive the program as well as financial support from the United Arab Emirates and Saudi Arabia played a catalyst role in the bullish activity.

Dalal Securities CEO Siddique Dalal said it was evident the government had begun implementing the IMF’s conditions for the revival of the loan programme. He was referring to the steep depreciation of the rupee in the interbank and open markets today after an unofficial cap of the USD-PKR exchange rate was removed.