Karachi, September 26, 2024 – The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) experienced a significant drop of 590 points on Thursday, closing at 81,658 points, despite the positive news of the International Monetary Fund (IMF) approving a $7 billion Extended Fund Facility (EFF) for Pakistan. The index, which had closed at a record high of 82,248 points the previous day, reflected a 0.72% decline by the end of the session.
Analysts at Topline Securities Limited pointed out that market volatility was evident throughout the day. The KSE-100 index fluctuated sharply, reaching an intraday high of 657 points before plummeting to a low of 695 points. Ultimately, the bears triumphed over the bulls, with the index closing in the red. The decline came as a surprise to many, given the optimism surrounding the IMF’s approval, which is expected to provide a critical boost to Pakistan’s struggling economy.
“Today’s performance reflects investor caution despite the IMF news,” said a market analyst. “While the IMF loan approval is a positive development, it seems investors remain wary of broader economic challenges and potential fiscal tightening measures that may accompany the loan program.”
Key market movers on the day included heavyweights such as Service Industries Limited (SRVI), Bank Al-Falah (BAFL), Pakistan Oilfields Limited (POL), Bank AL Habib Limited (BAHL), and National Bank of Pakistan (NBP), which collectively contributed 118 points to the index. However, this upward momentum was outweighed by declines in major stocks like Hub Power Company (HUBC), Fauji Fertilizer Company (FFC), United Bank Limited (UBL), International Industries Limited (ILP), and Mari Petroleum Company (MARI), which dragged the index down by a combined 426 points.
Despite the overall decline, trading activity remained strong, with 423 million shares exchanging hands, generating a total turnover of Rs 17.6 billion. Among the most actively traded stocks, Pakistan International Airlines Company Limited (PIHCLA) stood out, with 36 million shares traded, reflecting continued investor interest in certain sectors.
Analysts noted that while the IMF loan approval should theoretically boost market confidence, external factors such as inflationary pressures, currency volatility, and concerns over potential interest rate hikes may continue to weigh on investor sentiment in the short term.
Looking ahead, market participants are closely watching for further developments in the economic landscape, including government actions related to fiscal reforms, which are expected to be part of the IMF deal. Investors will also be paying attention to global economic conditions and their impact on Pakistan’s financial markets.
