A return of political clarity in the country boosted confidence at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 Index recorded a jump of over 1,450 points and was trading well above the 45,900 level in the opening minutes of the trading session on Monday.

At the time of filing this report, the KSE-100 Index was being traded at 45,902.88 points, registering a gain of 1450.20 points or a percentage change of 3.26%.

“The return of political certainty has led to this development,” CEO of Topline Securities, Mohammed Sohail, told Business Recorder.

The market expert said statements given by the new government regarding prioritising the economy and continuing talks with the International Monetary Fund have boosted market confidence.

The PSX remained under pressure last week due to investors' concerns over political unrest after a no-confidence motion was filed against Prime Minister Imran Khan and the rupee slumped against the US dollar.

Last week, the benchmark KSE-100 plunged by 707.53 points on a week-on-week basis and closed at 44,444.58 points.

However, a number of key developments occurred during the weekend: the then opposition won the no-confidence motion, after 174 votes were cast in favour of the resolution, making Khan the first premier in Pakistan's history to be ousted through a no-trust motion.

Imran has insisted that it is a Western power that motivated National Assembly members to bring the no-confidence vote against him, saying that his pursuit of an independent foreign policy for Pakistan has angered the United States. Washington has denied the allegations.

In Pakistan, the opposition has claimed that it was Imran's mishandling of the economy, which resulted in double-digit inflation, that prompted it to take action against him.

The story was originally published in Business Recorder on April 11, 2022.