Pakistan’s stock market experienced a decline on Monday as the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 41,829 points, down 413 points from Friday’s closing of 42,242 points.
According to analysts at Topline Securities, this decline was due to a correction after several positive trading days.
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The KSE-100 index had opened on a positive note but succumbed to selling pressure throughout the day. The selling spree can be attributed to media rumors about the inconclusiveness of the prevailing International Monetary Fund (IMF) program and the likely hike in interest rates during the upcoming policy meeting scheduled next month.
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During the trading hours, the technology, exploration and production, and cement sectors contributed negatively to the index, with companies like SYS, OGDC, TRG, PPL, and LUCK losing a total of 186 points. However, some companies like HMB, FFC, and BAHL witnessed buying interest, adding a total of 43 points to the index.
The trading volume was significant with over 178 million shares traded at the bourse, and the total value clocked in at Rs4.7 billion. The volumes chart was led by WTL with trading of 20.9 million shares.
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Pakistan’s stock market has been volatile in recent times due to the prevailing economic situation in the country. The government has been in talks with the IMF to secure a bailout package to stabilize the economy, which has been plagued by inflation, high unemployment, and a depreciating currency.
The IMF program has been a contentious issue, with the government and the IMF at loggerheads over the terms of the program. The government has been reluctant to implement some of the IMF’s demands, which has led to delays in the disbursement of funds. This uncertainty has led to fluctuations in the stock market, with investors wary of the economic situation.
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In conclusion, the decline in Pakistan’s stock market on Monday can be attributed to media rumors about the inconclusiveness of the IMF program and the likely hike in interest rates during the upcoming policy meeting. However, the market has been volatile due to the prevailing economic situation, and investors should exercise caution while making investment decisions.
