ISLAMABAD: Pakistan Stock Exchange accorded a very warm welcome to the regime change, defeat of PM Imran Khan in the National on the no-confidence move on Saturday night. On Monday morning, PSX-100 index gained 1437 points, rising to 45,882 points mainly because of the opposition’s victory against PM Imran Khan.
The US dollar also faced further blow today as its value fell below 183 rupees in the inter-bank from previous 184.50 rupees, losing 1.50 rupee till 10:50am on Monday morning.
Meanwhile, stock market opened on a bullish note on Monday morning and before 11am, the 100-index of PSX gained more than 1400 points with 71.53 million shares trading involving an amount of 3.256 billion.
After the defeat of PM Khan in the no-trust move, the market analysts were expecting further surge in the trading of shares amid the regime-changing scenario.
The stock market became bullish when the Supreme Court of Pakistan restored the National Assembly and order the PTI government and Speaker to hold voting on the no-confidence motion of the opposition while dollar also recorded a big single-day blow when its value fell to 185 rupees, from 189 rupees in the open market a day earlier the SC’s verdict.
If opposition’s leader Shahbaz Sharif is elected as Prime Minister today, the stock market would further march towards growth while dollar will shed more tears and value in the inter-bank and open market.
Earlier, on Thursday the PSX-100 benchmark index opened trading today with below 44K level, but yesterday’s court decision of complete restoration of democratic set-up in the country led to an increase of 457 points in the index. Till 11am, the 100-index surged to 44,244 points with 19.934 million shares trading, involving 906 million rupees amount. Before closing the stock market gained a total of 700 points on Thursday.
Importantly, the stock market in the country demonstrated a dismal behavior from the day the National Assembly was dissolved on the advice of Prime Minister Imran Khan soon after the unconstitutional dismissal of no-trust move by the deputy speaker Qasim Suri on April 3.
Since April 3, dollar-rupee exchange rate hit 190 rupees in the open market from earlier 179 to 180 rupees exchange rate. Thus, stock market and rupee were on the forefront in facing blow of the dismissal of the democratic system in the country.
Pakistan Stock Exchange made some recovery today (April 4) while anticipating a suitable decision by the Supreme Court about the dissolution of National Assembly and dismissal of no-trust move by Deputy Speaker.
On Monday, Chief Justice of Pakistan said that the court will announce a suitable decision, but the court adjourned the hearing till Tuesday sharp noon.
On Tuesday the stock market begun trading with more than 100 points decline, but equities made some recovery in anticipation of a good decision of the apex court which can pull out the country from the prevailing serious political and constitutional crisis.
Till 10:40am today, 100-index of Pakistan Stock Exchange has gained 261 points, mounting to 44,163 points. If the Supreme Court gave any reasonable decision today, it will revive a bullish sentiment in the stock market, according to analysts.
A day earlier, Pakistan Stock Exchange has strongly reacted to dissolution of National Assembly and it crashed by more than 1200 points at the start of trading this morning (April 4).
The PSX benchmark 100-index closed with a decline of over 1200 points on Monday.
Dissolution of National Assembly has shocked investors who were expecting a clear decision in the wake of majority of opposition parties in the parliament. Instead of facing a no-confidence move, the PTI government rejected it ‘terming it a conspiracy’ and on the advice of Prime Minister, President of Pakistan Dr Arif Alvi dissolved the National Assembly, shocking everyone in the country and abroad.
At present, Pakistan Stock Exchange is trading around 44,307 points with a decline of 844 points. On Friday the PSX edged up over 45,300 points when the opposition parties claimed its majority in the National Assembly, but dissolution of NA derailed the positive sentiment at the market.
The five-member bench of the Supreme Court of Pakistan headed by CJP Umar Ata Bandial will take up for hearing the dismissal of no-trust move by the Deputy Speaker around 12 Noon today (April 5).