PSX in green zone after historic devaluation of rupee; KSE-100 index gains over 1000 points

The devaluation of Pakistani currency (Rupee Devaluation) has created a positive sentiment in the market at the Pakistan Stock Exchange (PSX) has entered the green zone. At 2:39 pm, the benchmark KSE-100 index reached 40,935 points after a massive gain of over 1,000 points. The index gained 1,150 points. Market analysts believe that the devolution of the rupee has cleared the uncertain condition persistent among the investors.

According to Tahir Abbas, Head of Research at the Arif Habib, the market is under a positive trend. He said that the market-based exchange rate of the rupee is a driving factor for a market and the current condition has cleared the uncertainty among the investors. Tahir Abbas also praised the steps taken by the government. He commented that the measures taken by the government have helped the market to recover and enabled the investors to gain back their confidence. The inventors were facing pressure due to the unclear situation of the IMF programme.

Earlier, the decision to remove the unofficial cap on the dollar exchange rate pushed the rupee to a new all-time low. The rupee traded at Rs255 against the US dollar in the interbank market. The forex dealers updated that the local currency traded between Rs242 to Rs245 in the open market.

Business analysts said that in the next few days, the tariff on electricity and gas would take a hike as the government is about to release a mini-budget. The government proposed mini-budget is expected in 8-10 days. It is expected that the overall taxes will also increase.

Former finance minister and leader of PTI Asad Umar criticised the steps taken by current finance minister Ishaq Dar. Asad said that those who once claimed to bring down the rupee from 200 dollars have hiked it above 240 dollars. He further said that billions of dollars lost are recorded in remittances & exports, many businesses got destroyed, and millions of people are unemployed due to an unjustified ego and rupee devaluation occurs.