PSX closes lower amid Nowshera blast, govt’s inflation warning

By Raza Hassan

KARACHI: The benchmark 100 index of the Pakistan Stock Exchange (PSX) witnessed another bearish session on the back of a militant attack in Khyber Pakhtunkhwa province Friday, falling 543.97 points or (-0.48%) and closing at 113,240.33 level on the last session of the week.

During the intraday trading the index fell to the level of 113,442.95 before the Friday break and reached 114,037.72 level before sliding down to 113,240.33 level or (-0.48%). 

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“Investors remain wary of the security situation following an unfortunate incident in the country’s north-west. Market participants are also cautious ahead of the upcoming IMF review for the release of the next tranche,” Director Research at AKD Securities Muhammad Awais Ashraf told Hum News English.

However, equities are anticipated to remain preferred class this year as a significant decline in inflation, a fully funded external balance, and a surplus current account have strengthened the outlook for interest rates to drop into single digits, which will improve their relative attractiveness, Ashraf added.

Stocks closed under pressure amid consolidation near earnings season and government’s projections over a spike in CPI inflation next month, said Ahsan Mehanti, analyst at Arif Habib, said.

Dismal earnings of Pakistan Petroleum Limited (PPL) and Oil and Gas Development Company Limited (OGDCL), concerns over IMF-led corporate and provincial tax reforms, and uncertainty over IMF approvals for the power tax relief and federal budget FY26 proposals played a catalyst role in the bearish close on Friday, Mehanti went on to add.

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Meanwhile, Inflation in Pakistan continued to rise, with the weekly rate increasing by 0.38 per cent compared to the previous week.

According to the Pakistan Bureau of Statistics (PBS), inflation saw a slight increase of 0.32 per cent on an annual basis compared to the same period last year.

The Sensitive Price Indicator (SPI) for the week ending February 27, 2025, revealed that out of 51 essential items, 19 saw price increases, 11 experienced a drop in prices, and 21 remained unchanged.