KSE-100 index gains over 900 points as political tensions subside

As political tensions eased, the Pakistan Stock Exchange (PSX) recorded a surge in shares, rising by over 900 points in intraday trade.

It seems that the convictions of the former prime minister Imran Khan and his spouse, Bushra Bibi, have not intensively impacted the sentiments of investors.

In the wake of declining political instability, investor confidence has been boosted, leading to a 972-point rise in the KSE-100 index at 11:38 a.m.

Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan had been sentenced to 14 years in prison in the £190 million case, according to a ruling by the Accountability Court on Friday. 

The Accountability Court Judge Nasir Javed Rana had pronounced the verdict and sentenced the former prime minister's wife, Bushra Bibi to seven years and fined Rs500,000, while Imran Khan faces a fine of Rs1 million.

Geo quoted Director of Research at Intermarket Securities Ltd Muhammad Saad Ali, stating, “politics is the key reason why the market had stalled in the past couple of weeks.”

The experts maintained that the supportive monetary policy and surplus in current account statistics improved the momentum of the market. 

The surge of 0.90% took the market to a high of 116,247 on Monday. The KSE-100 index rose by 2,025 points, or 1.8%, compared to the previous week, closing at 115,272 points.

The rally was driven by valuable investors, who capitalised on the market after a week’s dip.

Foreign selling continued during the week, amounting to $8.7 million, compared to net selling of $5.7 million last week.