KSE-100 falls by 242 points on concerns over economy in IMF program

KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) fell by 242 points on Tuesday due to concerns over economic condition in post IMF program.

The share market closed at 36,784 points as against 37,026 points showing a decline of 242 points.

Analyst at Next Capital Limited said that the stock market plunged amid growing concerns on economy post IMF program and concerns over additional taxes to be implemented in the upcoming budget.

As per news reports, Pakistan and IMF have launched the final round of talks over the $8 billion bailout package for Islamabad, a deal that’s expected to be signed next month.

The round started on Monday in the capital and is expected to last till May 7.

Market participation for the 100 index decreased to 82.5 million shares from 132.4 million shares in the previous session (-37.7 percent on d/d basis).

Major contribution to total market volume came from UNITY, PAEL, and BOP churning 28.0 million shares out of the total market volume of 110.6 million shares.

Daily traded value for the 100 index decreased to USD28.2 million from USD38.2 million in the previous session.

Analysts at Topline Securities said that the index extended losses for the second consecutive day as investors remained wary on upcoming events like Budget and Amnesty Scheme.

Further, IMF technical team is also in town till May 07, which is likely to dictate key revenue measures for upcoming federal budget.

Consequently, index lost 0.65 percent today, closing at 36,784.

During the outgoing month, Index lost 4.8 percent – worst April month in last 14 years.

E&Ps, Cements, and Banking sector remained top laggards with deletion of 887 points from the index.

Investors sentiments in E&Ps were affected after offshore drilling hit a snag, while cement sector remained under pressure due to slippage in cement prices as difference of opinion still prevails among manufacturers over uniform pricing.

Volumetric activity witnessed rise of 33 percent MoM, similarly value was up 9 percent MoM.

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