Bulls dominated at the Pakistan Stock Exchange (PSX) on Wednesday as shares gained over 900 points, with analysts attributing the gains to consensus over the formation of the government.
After multiple rounds of talks spanning over one week, an agreement was reached last night between the PML-N and the PPP to share power in order to form the next government.
Last week, growing doubts about the formation of a new coalition government amid raging protests against alleged manipulation of election results across the country kept the market sentiment depressed.
Today, bulls took strong hold of the KSE-100 index as soon as the opening bell rang. According to the PSX website, the index was trading at 61,422.16 points at 9:55am, up 957.92 or 1.58 per cent from the previous close of 60,464.24.
Speaking to Dawn.com, Mohammed Sohail, chief executive of Topline Securities, said the market opened to 900 points after news of political parties reaching an agreement for the government formation.
Awais Ashraf, director of research at Akseer Research, was of a similar opinion.
“Clearance on the formation of a new government in the Centre after major political parties reached an agreement yesterday helped to restore investor confidence.
“The new setup will likely continue with the reforms and take a more cohesive approach for settling issues between the Centre and provinces required for fiscal discipline,” he said.
More to follow
