KARACHI: The benchmark KSE-100 Index in the Pakistan Stock Exchange (PSX) witnessed a significant decline of over 450 points, indicating a strong comeback of bears in the market on Monday.
The negative sentiment was triggered by a persistent delay in the resumption of the International Monetary Fund (IMF) programme, according to experts.
At around 3:10 pm, the KSE-100 Index was being traded at 41,778.53, which represented a decline of 463.45 points or 1.1%. Across-the-board selling was witnessed, as index-heavy sectors including automobile, chemical, cement, commercial banks, oil & gas exploration companies, and OMCs were trading in the red.
The negativity engulfed the Pakistan Stock Exchange, and experts suggested that Pakistan’s inability to secure a staff-level agreement (SLA) with the IMF was leading to this drag. “Pakistan’s inability to secure a staff-level agreement (SLA) with the IMF is leading to this drag,” said Sana Tawfik, an analyst at Arif Habib Limited (AHL).
The IMF on Friday reiterated that it is working with Pakistani authorities to bring the pending ninth review to a conclusion “once the necessary financing is in place and the agreement is finalised”. The delay in the resumption of the IMF programme is leading to the negative sentiment, which is causing a decline in the KSE-100 Index.
