PSX Sinks 1,200 Points Amid IMF Concerns and Profit-Taking
The Pakistan Stock Exchange (PSX) fell sharply on Monday. The benchmark KSE-100 index dropped 1,238 points to close at 167,752. Investors booked profits after weeks of strong performance.
Market sentiment weakened due to reports about IMF concerns over trade data discrepancies. The Pakistan Single Window and Pakistan Revenue Automation Limited reported conflicting trade numbers.
This news created panic among traders.
Analysts described the fall as a healthy correction. They expect the market to recover once the IMF clears the next loan installment.
IMF Talks and Tensions
JS Global’s Head of Research Muhammad Waqas Ghani said concerns about a widening trade gap and IMF reservations hit investor confidence. He believes the decline will prove temporary once clarity on policy returns.
AKD Securities’ Director Research Muhammad Awais Ashraf said IMF’s reservations overshadowed improving economic indicators. However, he pointed out that State Bank data showed no alarming trends in dollar flows.
KTrade Securities’ equity trader Ahmed Sheraz said the PSX started the week on a weak note. He linked the fall to both geopolitical tension and IMF-related uncertainty. Statements from Indian leaders also fueled investor caution.
Arif Habib Limited (AHL) reported that the index initially plunged 1.77%. Late buying trimmed losses to 0.73%. Fauji Fertiliser, HBL, and Adamjee Insurance supported the index. Engro Holdings, Meezan Bank, and Hub Power dragged it down.
Trading activity slowed as volumes fell to 1.27 billion shares. Foreign investors sold stocks worth Rs594 million. The Bank of Punjab led trading, followed by K-Electric and Bank Makramah.
Despite the drop, analysts remain optimistic. They believe confidence will return as Pakistan secures its next IMF tranche and economic stability improves.
