Stocks fail to hold intraday gains

Published January 12, 2024
— PSX data portal
— PSX data portal

Shares at the Pakistan Stock Exchange’s (PSX) KSE-100 index on Friday failed to hold intraday gains, increasing by a mere 20 points.

According to the PSX website, the KSE-100 index had gained 565.79, or 0.88 per cent, at 10:56am to stand at 65,183.35 from the previous close of 64,617.56. Analysts had attributed the rally to the International Monetary Fund’s (IMF) Executive Board successfully concluding the first review of Pakistan’s economic reform programme.

However, the index retracted most of its gains by the end of session, up by just 20.07 points, to close at 64,637.63.

Mohammed Sohail, chief executive of Topline Securities, had credited the earlier bullish momentum to the IMF board meeting, adding that the “hint in their statement on lower inflation” bolstered positive sentiments today.

Raza Jafri, head of equities at Intermarket Securities, too had credited the initial rally to the IMF board’s approval. He added that the IMF estimated June’s inflation data to ease down to 18.5pc which had increased expectations of monetary easing going forward.

“Possibly due to lingering political uncertainty given another resolution was tabled in the Senate seeking a delay in elections,” he added, as the index failed to sustain its gains.

A day earlier, the IMF board had completed its first review of Pakistan’s economic reform programme supported by a $3 billion Stand-By Arrangement (SBA) and allowed the immediate disbursement of $700 million.

This latest disbursement will bring the cumulative total under the arrangement to an impressive $1.9 billion. The financial support provided by the IMF propels global confidence in Pakistan’s commitment to implementing economic reforms.

“Economic activity has stabilised in Pakistan, although the outlook remains challenging and dependent on the implementation of sound policies,” the IMF board observed.

It also said that “continued timely and consistent implementation of programme policies remains critical, with no room for slippage”.

The board reminded Pakistan that it “requires strict adherence to fiscal targets while protecting social spending, a market-determined exchange rate to absorb external shocks, and further progress on structural reforms to support stronger and more inclusive growth”.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Border clashes
19 May, 2024

Border clashes

THE Pakistan-Afghanistan frontier has witnessed another series of flare-ups, this time in the Kurram tribal district...
Penalising the dutiful
19 May, 2024

Penalising the dutiful

DOES the government feel no remorse in burdening honest citizens with the cost of its own ineptitude? With the ...
Students in Kyrgyzstan
Updated 19 May, 2024

Students in Kyrgyzstan

The govt ought to take a direct approach comprising convincing communication with the students and Kyrgyz authorities.
Ominous demands
Updated 18 May, 2024

Ominous demands

The federal government needs to boost its revenues to reduce future borrowing and pay back its existing debt.
Property leaks
18 May, 2024

Property leaks

THE leaked Dubai property data reported on by media organisations around the world earlier this week seems to have...
Heat warnings
18 May, 2024

Heat warnings

STARTING next week, the country must brace for brutal heatwaves. The NDMA warns of severe conditions with...