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

Published: November 1, 2016

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.

Market watch: Interest seen in select scrips as KSE-100 posts marginal gain

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.

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Reader Comments (2)

  • oats
    Nov 1, 2016 - 8:10PM

    Imran Khan should realize the damage he is causing to Pakistan’s improving economy every time he does his dharna nonsense. Why can’t he just protest in parliament and wait until the next elections. It sounds like Imran Khan is just afraid of the improving situation under the present government will never give him the chance which is why he just wants to be PM by undemocratic means.Recommend

  • Ali Malik
    Nov 1, 2016 - 11:09PM

    The Las Vegas of Pakistan, Pakistan Stock Exchange.Recommend

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