The Pakistan Stock Exchange (PSX) experienced a turbulent session today, opening with the KSE-100 index at 80,652.71 points, down significantly by 639.42 points, or 0.79%. The trading day saw considerable volatility, with the index peaking at 81,321.63 points before dipping to a low of 80,591.54 points, reflecting investor uncertainty in the market.
During today’s trading, approximately 44,995,684 shares were exchanged, resulting in a total trade value of Rs. 3.4 billion. The previous day’s close stood at 81,292.13, highlighting a marked decline in market momentum and investor sentiment.
The fluctuations observed over the past week can largely be attributed to a mix of economic and political influences. The market initially soared to an all-time high above 82,000 points following the International Monetary Fund’s (IMF) approval of a $7 billion Extended Fund Facility (EFF). This approval was seen as a significant milestone for Pakistan’s economy, unlocking essential financial support and paving the way for additional funding from various international lenders.
However, the euphoria was short-lived. Profit-taking by investors, coupled with foreign sell-offs, quickly countered the market gains, resulting in a decline of almost 800 points by the week’s end. Contributing to this volatility were rising concerns over political instability and the stringent conditions associated with the IMF loan.
Investor confidence was further shaken by apprehensions regarding proposed government tax reforms and the phasing out of energy subsidies mandated by the IMF. By the end of the week, the KSE-100 index recorded a decline of 782 points, closing at 81,292, representing a weekly decrease of 0.95%.
Trading activity saw a drop in average volumes by 17%, with foreign investors liquidating $12.5 million in stocks, continuing a worrying trend. Nonetheless, there were some positive developments, as Pakistan secured financing assurances from China, Saudi Arabia, and the UAE, providing a much-needed boost to the country’s economic outlook.
Notably, sectors such as power generation, oil and gas, and technology struggled, negatively impacting overall market performance. On a brighter note, the Pakistani rupee appreciated slightly against the dollar, while the State Bank of Pakistan’s reserves experienced a modest increase, offering a glimmer of hope amid the prevailing market challenges.
