KARACHI: The Pakistan Stock Exchange (PSX) surged on Wednesday as the stock market rallied over 600 points over an anticipated decline in inflation and slashing of petroleum prices.
The benchmark KSE 100 index surged by 605.45 points, or 1.86 percent and closed at 33,158.84 points. Bulls dominated the stock market throughout the day as the indices crossed the 33,000 points mark. The stock market gains 211 points as trading resumed and remains in the green until trading was suspended.
The PSX has sought a relief package from the government to restore investor confidence and mobilise new investment through testing times. The stock market was triggered by an anticipated dip in inflation to single digits for the month of April which could to further cuts in interest rates. The State Bank of Pakistan has already reduced the policy rate to 9 percent in the latest monetary policy.
The government is also expected to announce a massive cut in petroleum owing to a massive freefall in crude oil rates in the international market. The Oil and Gas Regulatory Authority (Ogra) has recommended reduction in petrol prices by Rs20.68/ litre (21.4%) and Rs33.94 per litre (or 31.6%).
Finance Adviser Hafeez Shaikh has also said the upcoming budget would be formulated keeping in mind the impact of coronavirus pandemic on people and businesses and would aim at mitigating their sufferings. The financial stimulus package announced by Prime Minister Imran Khan has improved investor confidence leading to the rally on the stock market.
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