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
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.
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