After the Senate and National Assembly voted to approve the 26 th Constitutional Amendment, there was a surge in trading on the Pakistan Stock Exchange (PSX). By lunchtime, the KSE-100 Index, a major representative index of the stock market, rose by 711 points reaching 85,961. This growth is a 0.83% increase as compared to the previous day when the market closed at 85,250.

The increase in the stock market is mostly due to renewed confidence amongst investors as the political landscape, which had been in turmoil, has become stable with the adequate amending of the constitution. This constitutional amendment is particularly significant as it seeks to address the presidential appointment of judges where such appointments have never been in the public domain. The upturn in these papers is seen as a vindication of a potentially better environment for business stability and conduct.

In addition, market encouragement is due to the current Shanghai Cooperation Organization (SCO) summit taking place in Pakistan and also the visit of the Prime Minister of China. Additional promises from China have played a part in raising the market and further enhancing the positive effect.

This is not the first time the market has gained from political or economic narrations. On October 16, the KSE-100 Index increased by 365 points to hit a high of 86,205 on expectations of stronger relations with China. Earlier, on the 9th of October, the index crossed the threshold of 86,000 points after gaining 627 points within a single trading day. This given increase was not sustained by the close of trade on that day but showed the sensitivity of the market to external conditions and to the mood of the investors.

The performance of the KSE-100 Index has been up for almost the entire month of October, with the indices of 7 th and 8 th October having gained even more than 1300 points and almost 800 points, respectively. These rallies highlight the strength of Pakistan’

Read More: https://behindthecurtain.blog/26th-constitutional-amendment-approved-under-chairman-gilani/

Sources:https://www.dawnnews.tv/