PSX witnesses bullish trend after reverting to old trading system

By Muhammad JuniadPublished On 06 Jan 2023

The Pakistan Stock Exchange (PSX) has experienced a welcome change after reverting to the old trading system as the new system introduced last week encountered problems and caused trade to suspend.

The KSE100 index rose by 761 points on Monday, closing at 46,946. The turnover also improved and 430 million shares were traded in the market.

The rally seems to continue on Tuesday as the KSE100 index rose by 229 points in the first half-hour of the trading.

As soon as the old trading system was restored on Monday, the market experienced a welcome change.

Authorities decided to revert to the old system over the weekend after initially announcing that they would stick to the new trading system DTS, which was purchased from the Shenzhen Stock Exchange of China.

Last week, the PSX officials and other stakeholders agreed that the administration will install additional hardware to address the shortcomings of the new trading system.

However, the DTS continued to experience glitches, and finally, a decision was made to switch back to the 20-year-old Karachi Automated Trading System or KATS.

The acquisition of the DTS was aimed at enhancing security against data leakage and theft, protecting investors' data, and connecting the national market to regional and international stock markets, according to the authorities.

The uptick in the stock market is also being linked to the positive outcome of the Pakistan-IMF talks and the $4.2b Saudi aid package. These developments have helped the rupee to rise against the dollar.

The US dollar continues to depreciate in the currency market. On Monday, in the interbank market, the US dollar fell further by 36 paisas to close at Rs171.29.