PSX closes lower amid geopolitical scenario and IMF concerns

KARACHI: The Pakistan Stock Exchange (PSX) KSE-100 Index witnessed a volatile session on Friday, hitting an intraday high of 147,534.41 before closing at 146,491.63, down 37.68 points (-0.03 per cent) amid profit-taking.

“Investor sentiment remained cautious as markets awaited the outcome of the Trump–Putin meeting, which could influence US tariff policy on India. Any revision in tariffs may alter Pakistan’s export outlook and impact international oil prices, both of which carry implications for Pakistan’s external accounts,” Al Habib Capital stated.

Reports of the IMF pressing Pakistan to strengthen its anti-money laundering framework further weighed on confidence. In broader developments, Pakistan and the US pledged to advance a new trade agreement and enhance bilateral trade and investment.

Meanwhile, the Pakistani rupee extended its upward trend, marking its sixth consecutive gain against the US dollar, lending some support to market sentiment.

The benchmark index opened on a positive note, climbing over 1,000 points during early trade. However, profit-taking emerged in the latter half as jittery investors booked gains ahead of the weekend.

“Stocks closed flat amid concerns over losses in state-owned enterprises and the IMF’s upcoming review for the release of the third tranche under the Extended Fund Facility,” said Ahsan Mehanti, CEO of Arif Habib Commodities.

Mehanti added that unmet IMF conditions on provincial tax collection and falling global crude oil prices also played a role in the negative close.

Top positive contributions to the index came from EFERT, LUCK, ENGROH, MEBL and AIRLINK, which collectively added 512 points. On the flip side, OGDC, UBL, PPL, HUBC and MARI lost value, dragging the index down by 499 points.

In terms of traded value, AIRLINK (PKR 3.38bn), OGDC (PKR 2.32bn), PSO (Rs1.53 billion), LUCK (Rs1.30 billion) and NBP (Rs1.11 billion) led the activity.

Overall, traded volume stood at 472 million shares, while the traded value amounted to Rs32.86 billion.

Meanwhile, Pakistan’s short-term inflation rose slightly during the outgoing week, with the Sensitive Price Indicator (SPI) recording a 0.31 percent increase compared to the previous week, the Pakistan Bureau of Statistics (PBS) reported on Friday. On a yearly basis, inflation was 2.21 percent higher than the same period last year.

The SPI is compiled by tracking 51 essential goods from 50 markets across 17 cities, giving policymakers a snapshot of short-term price changes.