Business

Stocks surge 5.5pc after Saudi funding

In the outgoing week, investors celebrated the success of Prime Minister Imran Khan in cajoling Saudi Arabia to announce a package of $6 billion ($3bn cash for balance of payment support along with another $3bn as deferred oil import payments extendible up to three years).
The KSE-100 index recorded stellar gains of 2,126 points (5.53 per cent) and closed well above the 40,000-level at 40,556 points. On Wednesday, the market rallied by 1,556 points, marking the second highest gain since June 2017. The rupee strengthened by 1pc against the dollar during the week.
The Saudi package provided comfort to investors as some clarity emerged on the economic front. Brokers said that it dispelled clouds of uncertainty that had hung over the market for a long time. Institutions did anticipatory buying as more support was expected from the UAE and China.
Stocks continued to climb in last three days of the outgoing week as investors believed that the financial packages from Saudi Arabia and China would help Pakistan grapple with the looming current account deficit and replenish the State Bank foreign exchange reserves which have dwindled to $8.7 million.