Pakistan equities down 3% over security, IMF loan concerns
During the intraday trade, the index hit a low of 157,678 points — a fall of 3.32% or 5,420 points
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
During the six sessions since October 3, the PSX has lost nearly 10,500 points or 6.21% from the peak of 168,990 points.
The Pakistan Stock Exchange (PSX) fell by almost 3% on Monday over military clashes with Afghanistan, the law and order situation, and the delay in the loan agreement with the IMF.
The benchmark KSE-100 index closed at 158,443.42, down 2.85% or 4,654.77 points following a day of intense bearish momentum.
Commercial banks, oil & gas exploration companies, and cement sectors were the major laggards in today's session, cumulatively shedding 2566 points from the index.
During the intraday trade, the index hit the low of 157,678.01 points — a fall of 3.32 8% or 5,420.18 points.
Over the last six sessions (including Monday), the PSX has suffered a loss of nearly 10,500 points or 6.21% from the peak of 168,990 points on October 3.
During the preceding week, the KSE-100 index closed at 163,098, receding 5,892 points or 3.49% as the overall market faced heavy selling pressure this week, primarily due to profit-taking.
By noon on Monday, key stocks lost around PKR 1,382 billion in value.
Salman Ahmad, head of retail at Aba Ali Habib Securities, said technical correction was due.
Major factors that infused selling pressure were an increase in leverage position crossing the PKR 100 billion mark, tension on eastern and western borders, the domestic law and order situation, and a delay in getting the IMF’s nod for the next tranche of the $7 billion loan program.
Ahmad said if the IMF approves the installment and the border situation eases, the market might bounce back.
Saad Hanif, head of research at Ismail Iqbal Securities, said the correction was overdue because last month the index climbed by 11.6%.
Moreover, he added that political tensions, conflict with Afghanistan, and geopolitical tensions added to the fire.
A.A.H. Soomro said that although the correction was anticipated, the political noise domestically and the security situation on the Afghan border are giving a reality check to bulls.
He said the market will stabilize in the coming weeks.
Jibran Sarfraz, an equity analyst, said different rumors also dampened investors' confidence. He added the expectation of 100% duty by the U.S. on Chinese goods also impacted the market as it would disrupt trade between the two countries. The anticipated move sent ripples through global markets, with Bitcoin crashing, gold rising, and bourses seeing fresh pruning.
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