PSX gains more than 800 points amid ‘good news’ from IMF

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US dollar declines in open market

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index opened in the green on Monday, gaining over 800 points amid expected good news from the International Monetary Fund (IMF).

According to the PSX website, the bourse witnessed an increase of over 450 points by 9:45am. At 10:40am, the index had reached 41,734.31 points, up 683 points, or 1.66 per cent.

The benchmark index closed at 41,878.57, up 826.78 points or 2.01pc from the previous close of 41,051.79.

The rally came after the index crashed on Friday, losing over 2,000 points, or 4.8pc, in the morning session following the government’s announcement of a 10pc “super tax” on large-scale industries including cement, steel, sugar, oil and gas, fertilisers, LNG terminals, textile, banking, automobile, chemicals, beverages and cigarettes.

The value of the US dollar moved in opposite directions in interbank and open bank markets on Monday, with the green back registering gains in the former and declining by a wide margin in the later.

As bizarre as the phenomenon might seem, it did not defy an explanation by the currency dealers. In the interbank market, the rupee shed 46 paisas, or 0.22%, against the US dollar on Monday after failing to sustain its early gains. The rupee rallied against the US dollar in the morning session with the greenback falling to Rs206.65 at one point. However, the local currency soon lost steam and faltered against the US dollar.

The US dollar closed at Rs207.94 in the interbank market on Monday, according to the data shared by the State Bank of Pakistan.

In the open market, however, a different story played out: The US dollar fell by Rs1.5 to Rs206.50, according to rates shared by the Forex Association of Pakistan.

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