Stocks rise 531 points as rupee recovers, oil prices dip
The Pakistani rupee recovered strongly against the dollar in the interbank market on Monday, gaining Rs2.63.
The PKR closed at Rs237.02 per dollar, according to the State Bank of Pakistan (SBP). This equates to an appreciation of 1.11 per cent from Friday’s close of Rs239.65.
Forex Association of Pakistan (FAP) Chairman Malik Bostan said the primary reason for the PKR’s gains was a decline in international crude oil prices which had led to expectations of a dip in the import bill, and consequently, the trade deficit.
Meanwhile, shares at the Pakistan Stock Exchange (PSX) opened the week on a positive note, with analysts citing the rupee’s strong recovery buoyed by a decline in international oil prices as well as Ishaq Dar’s upcoming appointment as the finance minister behind the rally.
The benchmark KSE-100 index gained 531.33 points, or 1.31 per cent, to close at 41,151.54 points.
The Head of Research at Intermarket Securities, Raza Jafri, said the KSE-100 was recovering on a combination of factors including lower oil prices, the apparent willingness of the West to listen to Pakistan’s debt restructuring requests, and the perception that Senator Dar may be able to bring the PKR under control.