Pakistan stocks gain momentum as army intervenes to end crisis

KARACHI: Pakistan's stock exchange rallied strongly today trading 793.31 points or 2.86 per cent up after army intervened to end the two-week-long political crisis.

The bourse ended the day with an increase of 793.31 points with the Karachi Stock Exchange (KSE) 100 index ending on 28,567.74 an increase of 2.86 per cent.

During the day the KSE 100 index at one stage crossed 1,102 points to The index rose much more rapidly today than it had fallen this past week with a 0.13 per cent or 36.92 point drop on Thursday landing the index at 27,774.43.

Financial analysts have put down the drop in the KSE index to the political uncertainty prevailing in the country due to the ongoing sit-ins by Imran Khan's Pakistan Tehreek-e -Insaaf and Tahirul Qadri's Pakistan Awami Tehreek in Islamabad, demanding Prime Minister Nawaz Sharif's resignation.

The positive sentiment by investors can be put down to the announcement that the army was going to mediate and find a solution to the political crisis, one trader said.

Pakistan's economic outlook had improved since the government of business-friendly Nawaz Sharif came to power with foreign exchange reserves having doubled from $7 billion to $14 billion.

Earlier in July, ratings agency Moody's had also upgraded Pakistan's country outlook to 'stable' from 'negative' citing its improving external liquidity position and commitment to reforms.