The stock market rose by 2.5% on Wednesday, gaining almost 1,000 points in a single day, after the uncertainty surrounding the election died down and global money managers issued a call to buy in to emerging markets.
Market analysts attribute this to multiple factors. The uncertainty regarding the July 25 polls is fading away. As opposed to fears of political unrest following former prime minister Nawaz Sharif’s arrest on July 13, investors are now expecting the elections to take place on time.
The dollar rate has also remained stable since Monday, when it rose significantly by Rs6.5 to Rs128.
Earlier, three of the world’s largest money managers — the Goldman Sachs Group, BlackRock Inc and Franklin Templeton Investment — said emerging markets are set to rally and now is the time to buy there.
All these factors combined boost investors’ sentiments as the benchmark KSE-100 Share Index rose to 40,898 points on Wednesday, up 965 points or 2.5% from the previous day’s tally of 39,993.