Pakistan Stock Exchange faces volatility amid IMF funding expectations

The Pakistan Stock Exchange's benchmark KSE-100 Index experienced a volatile trading session on Thursday, initially surging to an intra-day high of 72,593.25 before retreating below the 72,000 mark due to profit-taking activities. The positive start was fueled by reports of the Executive Board of the International Monetary Fund (IMF) convening to discuss the approval of a $1.1-billion funding for Pakistan. However, the index closed at 71,971.40, down by 80.49 points or 0.11%, as sectors like cement, chemical, and fertilizers witnessed profit-taking, leading to a negative trend.

Experts linked the buying spree to the anticipated release of the final $1.1 billion tranche from the IMF under the current $3-billion Stand-By Arrangement, set to expire this month. Pakistan is also eyeing a new long-term IMF loan, marking a potential 24th bailout for the country. The previous day, the PSX achieved a historic milestone by surpassing the 72,000 level for the first time, settling at 72,051.89, up by 692.49 points or 0.97%.

On the global front, Asian stocks faced a downturn, influenced by Meta Platforms' disappointing earnings forecast, which triggered a sell-off in tech shares. The yen's decline against the dollar since 1990 added to market concerns. In the currency market, the Pakistani rupee marginally depreciated against the US dollar, settling at 278.48. Trading activity saw an increase in volume and value, with K-Electric Ltd, WorldCall Telecom, and Unity Foods Ltd emerging as the top traded companies.

In conclusion, the PSX's fluctuating performance, driven by IMF funding expectations and global market trends, reflects the ongoing economic dynamics impacting Pakistan's financial landscape.