Pakistan’s stock market had to stop trading after 60 minutes, with a sudden rise of 9% on the Karachi Stock Exchange (KSE) on Monday. The surge came due to a market wide circuit breaker trigger. Currently, the clear reason behind this is not known, but according to some reports, the relief from the IMF is being considered as the reason. In addition, the ongoing war between India and Pakistan has now closed.
Why did you have to stop trading?
When a market-wide circuit breaker is implemented when a index rises more than the fixed limit. Its purpose is to protect investors from drowning in large bounce or decline in the market, because of this, the growing or increasing enthusiasm is controlled.
What is the situation in Pakistan?
Recently, Pakistan has requested the IMF to a new package of $ 2 billion. At the same time, the government has begun efforts to keep the rupee price stable and reduce the budget deficit (fiscal deficit). Due to all these signs, the confidence of foreign and local investors has increased for a while.
The sudden rise in the Karachi Stock Exchange and as a result of the trading closure shows an unstable but positive direction in the Pakistani market. It will be interesting to see in the coming days, will this boom last or will it be lost in the short term only?
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