KARACHI: Concerns about the economic outlook intensified following the announcement of a gas tariff increase for captive power plants (CPPs), which was prompted by the visiting International Monetary Fund (IMF) mission.

As a result, the Pakistan Stock Exchange (PSX) experienced renewed selling pressure, leading to the benchmark index’s third consecutive negative closing on Wednesday.

The government notified 23pc hike in gas tariff for CPPs, which will undoubtedly push production costs and hurt the export-oriented segment of the economy, especially the textile sector.

The IMF mission is busy evaluating the government’s economic performance benchmarks established under its $7 billion Extended Fund Facility. A positive review will facilitate the release of the second tranche amounting to $1.1 billion.

Topline Securities Ltd noted that the ongoing IMF review influenced the performance of the PSX. The market had a mixed session, with the benchmark index fluctuating between a high of 484 points and a low of 176 points. It ultimately closed at 114,084 points, marking a decrease of 93 points, or 0.08pc.

The positive movement was primarily fuelled by Mari Energies, Bank Al-Habib, Maple Leaf Cement Factory Ltd, Pakistan Aluminium Beverage Cans Ltd, and D.G. Khan Cement Company Ltd, contributing 147 points to the index. Conversely, Fauji Fertiliser, OGDC, and Engro Holdings weighed on the market, pulling the index down by 188 points.

Ahsan Mehanti of Arif Habib Corporation said the PSX closed under pressure amid a surge in KIBOR after the SBP status quo.

He mentioned that the disappointing data on car sales, which fell 25% month-on-month in February, along with pre-budget uncertainty and concerns regarding pending IMF approvals for relief on industrial power tariffs, played a significant role in the bearish market close.

The trading volume fell 5.93pc to 299.63 million shares while the traded value decreased 11.45pc to Rs20.26bn day-on-day.

Stocks contributing significantly to the traded volume included Sui Southern Gas Pipeline (18.25m shares), At-Tahur Ltd (14.88m shares), The Bank of Punjab (14.38m shares), Symmetry Group (12.44m shares) and Silkbank Ltd (11.05m shares).

Published in Dawn, March 13th, 2025