The stock market witnessed positive momentum with the KSE-100 index falling over 500 points on Thursday as the political temperature in the country cooled after PTI Chairman Imran Khan. backed down On his decision to stay in Islamabad till the announcement of the election.
According to the Pakistan Stock Exchange (PSX) website, the benchmark index was up 527.02 points soon after 3:30 pm, a change of 1.25 per cent. It closed at 42,541.71 points, up 529.05 points or 1.26 per cent.
Ali Malik, chief executive of First National Equities Ltd, said the stock market had seen a correction on the expectation that political issues would be resolved through dialogue.
“It is hoped that the government and the opposition will soon reach an agreement regarding the elections, which will end the precarious political situation in the country,” he said.
Raza Jafri, head of research at Intermarket Securities, said the market has taken heart from the “end of the road confrontation” between the government and PTI which provides time for negotiations.
He said talks with the International Monetary Fund (IMF) were inconclusive, the Seventh Review was still open and a revival of the loan program was possible if Pakistan met the necessary conditions.
“These are the same two risks that have plagued the market in recent days and are arguably already priced in with further upside expectations,” he said.
Ehsan Mehnti of Arif Habib Corporation said the stock market closed sharply after PTI protesters called off their Islamabad sit-in and talks with the IMF, which set targets for the next financial year and to ease fuel subsidies .