Delay in IMF’s approval puts downward pressure on stocks

KARACHI: As the earnings season draws to a close, the Pakistan Stock Exchange (PSX) experienced a slight decline on Tuesday, driven by reports that the International Monetary Fund’s (IMF) upcoming board meeting agenda does not include approval of a $7 billion loan for Pakistan.

Additionally, there is ongoing uncertainty regarding the country’s ability to secure $3-5 billion in external financing.

Stock market expected to turn positive on Tuesday

The trading session opened with optimism, as the KSE-100 index hovered around the key psychological threshold of 78,000 points. The index briefly reached an intra-day high of 77,930.03 points. However, this positive momentum was short-lived.

A rapid decline followed, as concerns over political instability, rising import costs, and the IMF’s conditions relating to taxes and power subsidies weighed heavily on the market.

The index bottomed out at an intra-day low of 77,460.39 points. In the latter part of the session, selective buying in sectors such as banking and oil and gas allowed the index to recover much of its losses. Nevertheless, it still ended the day below the crucial 78,000-point mark.