Bulls dominated at the Pakistan Stock Exchange (PSX) on Wednesday after a breakthrough in the political impasse, a day after the the key parliamentary rivals announced their decision to set up a coalition government in the centre.Â
According to the PSX website, the benchmark KSE-100 Index experienced a surge of 926.92 points, or 1.51% to close at 62,153.84 level.
Throughout the trading session, instances of gains surpassed those of losses, indicative of a strong investor confidence in the equity market.
On Tuesday, former allies, including the Pakistan Muslim League-Nawaz (PML-N), the Pakistan Peoples Party (PPP), among others, announced their plan to form a coalition government. These political parties also extended an invitation to the Pakistan Tehreek-e-Insaf (PTI) to engage in a reconciliation process for the betterment of the nation.
On the other hand, Moody’s Investors Service has warned that a coalition government in Pakistan may not be very united and politically strong, and it will face challenges in securing consensus to pursue difficult, but necessary reforms, Bloomberg reported.
According to some investors, the breakthrough in the political impasse could still lead to an unstable administration.Â
The nomination of former Prime Minister Shehbaz Sharif as Pakistan’s new leader, following support from the PPP, ended a deadlock arising from the split mandate in the February 8 elections.Â
Stocks broke a four-day downward trend, however, the country’s dollar bonds experienced a slight dip, with notes maturing in 2031 declining by 0.3 cents to 65.7 cents on the dollar.
Well written about coalition govt