PSX decline Bears take hold of PSX
The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Monday, with the KSE-100 index plummeting by 1,264.78 points, closing at 111,986.88 — a 1.12% drop from the previous session.
Market analysts attribute the downturn to investor concerns over the upcoming International Monetary Fund (IMF) review. Yousuf M. Farooq, Director of Research at Chase Securities, highlighted that trading volumes remained low, with shares worth only Rs18 billion exchanged on the first day of Ramazan. “Market activity usually slows down during Ramazan due to shorter trading hours,” he explained.
The IMF had approved a three-year, $7 billion financial assistance package for Pakistan in July 2024. The program includes six performance reviews, with the upcoming one determining the release of a crucial $1 billion tranche. Investors are wary about the country’s ability to meet IMF’s requirements, particularly in broadening the tax base.
Sana Tawfik, Head of Research at Arif Habib Limited, noted that “selling pressure and low trading volumes due to Ramazan have further intensified the market’s downward trend.”
Despite recent improvements in foreign exchange reserves—rising by $21 million to $11.2 billion—the Pakistani rupee weakened slightly, closing at Rs279.57 against the US dollar. Experts predict that inflation may remain low in the short term but could rebound from April, further influencing market sentiment.
Market analysts suggest that while the bearish trend persists, long-term investors may find opportunities once there is greater clarity on Pakistan’s economic outlook and the IMF program.
Also Read: World Bank Delegation Returns to Pakistan After Two Decades
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