PSX Plunges 490 Points Amid IMF Review Anxiety
The decline in PSX was also influenced by global market trends, as investors braced for an imminent escalation in the global trade war, with new US tariffs on Canada, Mexico, and China set to go into effect, leading to a sell-off in Asian equities. The PSX volume decreased to 206.85 million shares, with the value of shares declining to Rs11.33 billion.
Pakistan Stock Exchange (PSX) witnessed a sharp decline of 490 points, or 0.43%, on Wednesday, erasing all gains from the previous day, as the KSE-100 index closed at 112,253.76, driven by anxiety over the ongoing International Monetary Fund (IMF) review and subdued activity in Ramazan month.
The decline was driven by selling pressure in key sectors such as automobile assemblers, cement, chemical, commercial banks, oil and gas exploration, power generation, and refineries, despite some buying activity earlier in the day. Arif Habib Corp MD Ahsan Mehanti attributed the decline to foreign outflows, a weak rupee, and expected surge in CPI inflation. Topline Securities reported that the stock market witnessed a range-bound session, with the benchmark index moving between a high of 583 points and low of 598 points.
The market's upward movement was mainly driven by Engro Holdings, Tariq Glass Industries, Lucky Cement, Pakistan International Bulk Terminal, and Nestle Pakistan, which contributed 155 points. However, Engro Fertilisers, Fauji Fertiliser, and Pakistan State Oil deprived the index of 181 points. Foreign investors sold shares worth Rs32.2 million during the day, and the average daily trading volume remained below $50 million.
The market is now looking towards news from the IMF review as the next potential trigger, as the International Monetary Fund (IMF) mission, led by Nathan Porter, is in Pakistan for the first review of the $7 billion Extended Fund Facility (EFF) program. The mission will stay in the country for around two weeks and will review Pakistan's economic performance from July to December 2024.
