Stocks make historic jump as S&P's upgrades credit rating, PTI retreats

Benchmark KSE 100-share Index rises the largest gain 1,406.03 points in a single day

KARACHI: The Pakistan Stock Exchange's (PSX) benchmark-100 index posted its largest gain in history, increasing 1,406.03 points on Tuesday after Standard & Poor's upgraded Pakistan's credit rating and Imran Khan-led Pakistan Tehreek-e-Insaf (PTI) backed down from its planned protest on November 2 in Islamabad.

After remaining subdued for the past two weeks, the benchmark KSE 100-share Index rose 1,406.03 points or 3.52% to close at 41,299.87.

Absence of positive triggers and clashes between PTI protesters and the government meant that investors had remained cautious leading up to the planned protest on November 2.

However, news of S&P upgrading Pakistan's long-term credit rating to 'stable' and Imran Khan's retreat after the Supreme Court's decision to form a commission on Panamagate led investors back into the game.

"There was a sense that the Supreme Court may give a [positive] decision; that’s why the market opened positive and maintained its upward journey throughout the session," said Ali Raza, an analyst at Elixir Securities.



Equity investors acquired stocks across the board where heavy weights in the banking, energy and cement sector played a major role in pulling the index above 41,000.

As many as 412 stocks were active during the session, out of which share prices of 356 stocks closed up, 43 down, while remaining 13 closed unchanged.

Earlier during the day, the PTI chief backed down from his threat to shut down the capital city on Wednesday, vowing instead to hold a celebratory rally about the top court's decision to pursue a case linked to the Prime Minister Nawaz Sharif's Panama Papers controversy.