KARACHI: The Pakistan Stock Exchange (PSX) faltered on Tuesday on economic concerns after the International Monetary Fund (IMF) attached new performance benchmarks to the current $7bn Extended Fund Facility, which dented bullish sentiments and bears dragged the benchmark KSE 100 index below 119,000-barrier on nervous selling by jittery investors.
Topline Securities Ltd said the stock market remained volatile, reflecting a day of consolidation. The benchmark index recorded an intraday high of 211 points and a low of 1,163 points, eventually closing at 118,971.13, down 718.50 points or 0.60 per cent day-on-day. The decline was attributed to persistent profit-taking compounded by the absence of any positive triggers.
Key heavyweights, including Fauji Fertiliser Company, United Bank Ltd, Habib Bank Ltd, Pakistan Petroleum Ltd, and Engro Holdings, collectively contributed to a 386-point decline in the index.
Ahsan Mehanti from Arif Habib Corporation stated that the equities turned bearish due to pre-budget uncertainty regarding parliament’s approval of IMF-driven proposed tax measures in the federal budget for FY26, which include phasing out industrial incentives and implementing tax reforms for the agricultural sector.
He noted that the IMF warning over external risks of US reciprocal tariffs and escalating tensions with India impacted the sentiments. “Falling global crude oil prices and rupee instability played a catalyst role in the bearish close at the PSX,” he added.
Ali Najib, Head of Sales at Insight Securities, observed that equity investors resorted to selling as they took a cautious stance ahead of the upcoming budget.
The market is anticipating the introduction of new policies or tax measures in the upcoming budget. Consequently, investors adopted a wait-and-watch approach, seeking greater clarity before making any significant investment decisions.
Market participation slightly improved as the trading volume rose 2.94pc to 437.92 million shares while the traded value dipped 6.57pc to Rs20.27bn.
Published in Dawn, May 21st, 2025
