Markets

Stock Watch: KSE-100 remains rangebound as investors await IMF approval

Investors are also bracing for selling from foreign investors as a result of FTSE Russell downgrading Pakistan

Stock Watch: KSE-100 remains rangebound as investors await IMF approval
- YouTube

The benchmark KSE-100 index of the Pakistan Stock Exchange traded in a narrow range this week as investors await clarity on the external financing gap that would pave the way for the International Monetary Fund's (IMF) approval of a $7 billion loan program.

Investors are also bracing for selling from foreign investors as a result of FTSE Russell downgrading Pakistan to Frontier Market status. This reclassification will take effect from September 23.

The Monetary Policy Committee of the State Bank of Pakistan is scheduled to meet on September 12, and with inflation cooling down to single digit, most analysts expect a 150 basis points cut in the policy rate.

Furthermore, international crude prices declined by around 8% during the week. This would be positive for inflation and current account as well.

Comments

See what people are discussing

More from Business

Pakistan proposes Winter Demand Management Initiative to encourage power consumption

Pakistan proposes Winter Demand Management Initiative to encourage power consumption

Since power consumption declines during the winter season, it results in higher capacity charges

More from Video

Pakistan-US trade relations in numbers

Pakistan-US trade relations in numbers

Countries, including Pakistan, have begun to assess the impact of a Trump presidency on bilateral and multilateral relations