PSX ends winning streak as investors pause.

Published date17 April 2024

KARACHI -- Pakistan Stock Exchange (PSX) on Tuesday recorded its first decline following six consecutive positive sessions over institutional profit-taking coupled with uncertainty surrounding talks with the International Monetary Fund (IMF) for a new loan programme and geopolitical tensions.

Earlier, trading commenced on a robust note, with the KSE-100 index surging to the intra-day high of 71,092.61 points before midday. However, as the day progressed, the market began to decline due to a shift in investor sentiment, driven by several factors.

These included IMF's conditions for tax policy reforms, easing of international crude oil prices and a slump in global equities.

Sectors like oil and gas marketing, power generation, fertiliser and cement came under selling pressure, which negatively impacted the overall market.

Consequently, all earlier gains were erased and the index dipped to the intra-day low of 70,405.24 points before the end of trading. Despite posting losses, the bourse managed to stay above the 70,000 mark.

'Stocks closed lower amid concerns over institutional profit-taking, uncertainty about the outcome of Pakistan-IMF talks for a new bailout programme and geopolitical tensions,' said Ahsan Mehanti, MD of Arif Habib Corp.

'IMF's conditions for tax policy reforms and excise duty on the industrial sector, weak global crude prices and a slump in global equities played the role of catalysts in bearish close at the PSX.'

At close, the benchmark KSE-100 index recorded a decline of 60.92 points, or 0.09%, and settled at 70,483.66.

Topline Securities, in its report, said Pakistan's stock market wrapped up its trading session at 70,484, with a slight decline of 0.09%, or 61 points.

'Contributing to the negative movement was sectors like oil and gas marketing, power generation, fertiliser and cement where companies including Fauji Fertiliser, Engro Fertilisers, Pakistan State Oil, Hub Power and Fauji Cement collectively shed 146 points,' it said.

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