Pakistani stocks register highest weekly gain in a decade after record losses over rupee fluctuation
KARACHI: The benchmark index of the Pakistan Stock Exchange gained 2,537 points during the outgoing week, recovering by 7.5% since fluctuations in the exchange rate and economic uncertainty wreaked havoc in the financial markets.
The benchmark KSE-100 index closed the outgoing week at 35,703 points, gaining Rs 400 billion in share values and market capitalisation reaching Rs7,200 billion.
The outgoing week’s gains—the biggest increase in the market for over a decade—have so far helped the index recover 40% of its accumulated losses in the previous seven weeks.
The rupee registered record lows against the US dollar following the announcement of a $6 billion bailout agreement with the International Monetary Fund foreseeing a “market-determined rate” for the Pakistani currency.
Since last week, the rupee lost 3.74% against the dollar in the interbank market, with the currency cumulatively losing 37.45 since January 2018.
The IMF announcement sent shockwaves through the money and financial markets, with the KSE-100 plunging almost 4,000 points from 37,130 points on April 26 to a low of 33,166 at the end of last week—the market’s worst week in over a decade and half.