KARACHI: Trading on the Pakistan Stock Exchange (PSX) remained bearish for the fourth straight session as uncertainty about the outcome of the first IMF review turned investors cautious amid low volumes. As a result, the benchmark KSE 100 index witnessed a steep fall on Monday.

Ali Najib, Head of Sales at Insight Securities, said the session started on a lacklustre note, being Ramazan’s first working day. Since the initial trading, investors opted to trim their positions, which forced the benchmark index to fall through two barriers — 113,000 and 112,000.

The KSE100 index called the day at 111,987 level, posting a loss of 1,265 points or 1.12 per cent day-on-day.

“The reason behind this trend was market vibes regarding likely delay in IMF current review conclusion as revenue shortfall of Rs606 billion in 8MFY25 could likely become the hurdle to unleash $1.1bn tranche attached with this review on time,” he remarked.

Ahsan Mehanti of Arif Habib Corporation said stocks fell sharply lower near the earnings season close on a weak economic outlook. He added that foreign outflows, weak rupee, lower global crude oil prices and uncertainty over the IMF review fuelled bearish sentiments.

Topline Securities Ltd said the lack of a positive trigger drove the negative sentiment, and Engro Holdings earnings falling short of expectations wiped out 424 points. The shorter trading hours also put pressure on the market. Key stocks contributing to the downturn included Engro Holdings, United Bank, MCB Bank, Millat Tractors, and Pakistan Petroleum, which together accounted for a drop of 731 points in the index.

Conversely, Engro Fer­tiliser, Hub Power, Packa­ges Ltd and Meezan Bank witnessed some value-hunting, adding 74 points to the index.

The market participation dropped significantly as the trading volume plun­ged by 55.75pc to 208.88 million shares while the tr­a­ded value tumbled 94.78pc to Rs11.88bn day-on-day.

Stocks contributing significantly to the traded volume included National Bank (23.79m shares), World­Call Telecom (17.59m shares), Pakistan Inter­national Bulk Terminal (11.71m shares), The Bank of Punjab (11.55m shares) and Citi Pharma (10.72m shares).

Published in Dawn, March 4th, 2025