The Pakistan Stock Exchange (PSX) on Tuesday returned to a height it had not seen for two months, climbing above the psychological barrier of 48,000 points since August.
This confidence corresponded with the exchange rate with the US dollar falling to Rs280.51 in the Interbank.
During trading in the Karachi Stock Exchange (KSE) - 100 share index on Tuesday, the index gained a cumulative of 418.48 points, or around 0.88%. This helped it spur from Monday's closing position of 47,721.79 points, to close at 48,140.27 points on Tuesday.
From the morning bell, the index started to climb. The trend continued till the closing bell, with the index reaching the highest point of 48,166.36 points before finishing slightly lower at 48,140.27 points.
Top performers were the energy sector, with Karachi Electric seeing 33.899 million shares traded as its share price rose by Rs0.16 or nearly 7% to Rs2.46.
It was followed by Pakistan Refinery Limited, which traded 26.344 million shares with an increase in the share price of Rs0.67 (4.25%) and World Call Telecom with 21.448 million shares at Rs1.30 with a nominal increase of a paisa in value.
Experts said that the trend of the Rupee's rising value and confidence shown by global financial institutions in the economy was the cause for the positive sentiment.
Exchange rate
In the currency market, the Rupee continued its appreciation, gaining Rs1.14 during intra-day trading in the interbank market to close the day at Rs280.51.
Interbank closing #ExchangeRate for today https://t.co/NDEA8exty1#SBPExchangeRate pic.twitter.com/3SZJwpG3Bp
— SBP (@StateBank_Pak) October 10, 2023
Having reached a low of Rs307.10 in the interbank market on September 5, the Rupee has continued to appreciate on the back of a crackdown against smuggling and alleged currency manipulation.
It took the Rupee seven days to recuperate the Rs7.10 to get the dollar to Rs300. It took another 14 days for the Rupee to get to Rs290.
Similarly, after another 14 days, the Rupee has gained another Rs10 in value to get to Rs280.
Remittances
In data released on Tuesday, the central bank said that the country recorded inflows of $2.2 billion during September.
This was up by 5.3% from $2.1 billion sent by Pakistanis in August.
During Sep 2023, workers’ remittances recorded an inflow of US$2.2 billion, showing an increase of 5.3 percent compared to the previous month.
— SBP (@StateBank_Pak) October 10, 2023
For details see https://t.co/rPOvn9CTjfhttps://t.co/7XBd4uNES4#SBPRemittances pic.twitter.com/qenzCIvWUI
However, for the quarter of July through September, inflows fell short by $1.6 billion, with Pakistanis remitting $7.9 billion for July-September in fiscal year 2023, compared to $6.3 billion for July to September 2024 (ongoing fiscal year).