KARACHI: The stock market spiked over 950 points and recovered to nearly 36,000 points in intra-day trade on Wednesday.
Significant buying comes following confirmation by high government officials that they are working on creation of the market support fund. The fund, which is aimed at stabilising the stock market, would be launched in the next 10 days.
Adviser to PM on Finance Dr Abdul Hafeez Shaikh and Securities and Exchange Commission of Pakistan (SECP) Chairman Farrukh Sabzwari have confirmed the development, market analysts said.
At 11:15, the KSE-100 index – a benchmark for market performance – was up 839.29 points or 2.40% to stand around 35,788.57. Stockbrokers speculate the size at around Rs20 billion.
The state-owned mutual fund firm the National Investment Trust (NIT) would manage the fund and would inject the fund most probably in state-owned listed firms including OGDC, PPL, PSO and many more.
Earlier in 2008, the government had created a similar fund worth Rs20 billion and helped the market recovered. The fund was managed by NIT.
Besides, the SECP has also softened rules to allow listed firms to buy-back their own companies shares from shareholders to build confidence to equity investors at PSX. The development invited rally as investors were seen making across the board buying.
