KARACHI: The Pakistan stock market experienced a decline of 172 points on Wednesday following the emergence of negative reports related to the loan program with the International Monetary Fund (IMF).
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 41,834 points, showing a decline from the previous day’s closing of 42,006 points.
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Negative reports on IMF loan program impact investor sentiment
According to analysts at Arif Habib Limited, the trading session on the KSE-100 remained range-bound. The market initially started on a positive note but witnessed fluctuations as political noise intensified and concerns regarding the IMF program emerged. As the trading day progressed, investors chose to book profits, leading to the index closing in the negative territory.
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Trading volumes remained strong across various sectors, with a dominance of third-tier equities on the volume board. Several sectors contributed to the overall market performance. The Exploration & Production sector saw a decrease of 90.1 points, followed by Commercial Banks (-35.1 points), Investment Banks / Investment Companies / Securities Companies (-34.1 points), Technology & Communication (-33.7 points), and Cement (-27.6 points).
The trading volumes experienced a decrease from 196.2 million shares to 125.5 million shares, marking a decline of 36.0 percent compared to the previous trading day. Additionally, the average traded value decreased by 69.8 percent to USD 12.4 million, as compared to USD 20.24 million.
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Notably, several stocks made significant contributions to the trading volumes, including WTL, FFL, HUMNL, BGL, and LOTCHEM.
The negative reports surrounding the IMF loan program appear to have influenced investor sentiment, leading to profit booking and a subsequent decline in the stock market. It is crucial for market participants to closely monitor developments related to the IMF program, as they can have a significant impact on market dynamics and investor confidence.
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The Pakistan stock market continues to operate within a volatile environment, influenced by various factors such as geopolitical developments, economic indicators, and global market trends. Investors are advised to exercise caution and make informed decisions while considering the prevailing market conditions.
(Disclaimer: The above article does not constitute financial advice. Investors are recommended to conduct thorough research and consult with a certified financial advisor before making any investment decisions.}
