KARACHI: The Pakistan Stock Exchange (PSX) witnessed a downturn on Wednesday, with the benchmark KSE-100 index shedding 202 points as investors’ sentiments soured due to a delay in the International Monetary Fund (IMF) loan program.
The benchmark KSE-100 index closed at 39,880 points, marking a decline from the previous day’s close of 40,082 points. Analysts at Arif Habib Limited reported that the PSX experienced a mixed trading session during the day, reflecting the cautious and uncertain atmosphere prevailing in the market.
The day began with the benchmark KSE-100 opening in the red territory. Despite trading in both directions, investors remained on edge as they await the release of the long-overdue tranche from the IMF. The delay in the IMF loan program continued to weigh on investor confidence, leading to a subdued and cautious approach in the market.
Participation in the main board remained sluggish as investors adopted a cautious stance, resulting in lower volumes. In contrast, 3rd tier stocks continued to lead the volume board, reflecting a selective approach among market participants.
Sectors contributing to the overall performance of the market exhibited mixed trends. The sectors that experienced negative contributions included Commercial Banks (-50.2 points), Miscellaneous (-31.8 points), Technology & Communication (-22.6 points), E&P’s (-20.7 points), and Tobacco (-16.5 points). These negative performances contributed to the downward trajectory of the benchmark index.
Volumes saw an increase from 87.2 million shares to 108.8 million shares, representing a 24.7 percent Day-on-Day (DoD) rise. However, the average traded value decreased by -3.1 percent, reaching USD 11.3 million compared to the previous day’s USD 11.6 million.
Stocks that significantly contributed to the trading volumes included TELE, WTL, PABC, PIBTL, and NML. These stocks garnered attention from investors and played a role in influencing the overall trading activity during the session.
The delay in the IMF loan program has been a key factor impacting the sentiment in the Pakistani stock market. Investors continue to closely monitor developments related to the release of the tranche, and any updates in this regard are likely to influence market dynamics in the coming sessions.
The economic and political landscape will continue to play a crucial role in shaping investor sentiment. As uncertainties persist, market participants are expected to maintain a cautious approach, carefully evaluating their investment decisions in light of the evolving situation.
The PSX’s performance in the near term is likely to be influenced by developments on both the domestic and international fronts. Investors will be keenly watching for any indications of progress in the IMF loan program and how it shapes the overall economic outlook for Pakistan.
