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Pakistan’s 100 Index closes up over 1,000 points after Panama case ruling

KARACHI: The KSE-100 Index closed up 2.39% (1,140 points) at 48,787 points on Thursday, following the much-anticipated verdict on the Panama Leaks case by the Supreme Court.

The stock market performance is a barometer of investor confidence in the economy and reflected the investors’ sentiment following the Supreme Court’s ruling on the Panama Papers revelation that the prime minister’s children owned offshore companies dealing in millions of dollars in property transactions.

Speaking to TV earlier, a trader present at the Pakistan Stock Exchange (PSX) commented that he was expecting volatility during trade today, which didn’t turn out to be true. On the other hand, another had said, “If the decision is not favour of the PM [Nawaz Sharif], the market is anticipated to take a hit.”

The PSX added had 729 points by Wednesday’s closing bell, ending the day at 47,603 points, despite having commenced with a significant 800-point dip. Against its day’s low, the benchmark index gained almost 1,600 points, marking the longest stretch in a day.

Many had expected a knee-jerk reaction due to the Panama case development, with some even taking positions to gain from the low share prices anticipated after the drop.

Fears pertaining to the Panama case have kept investors cautious since a few days now; now that the matter is settled, it is anticipated to bring clarity to the market. According to Zeeshan Afzal of Insight Securities, even though the market offers healthy returns and Pakistan officially regaining its MSCI Emerging Market status in May would trigger a rally, a financing product is needed.

The Panama papers case has drawn widespread media attention over the past year.

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