PSX falls on economic fears

KSE-100 index decreases by 352.25 points at 39,802.91

KARACHI:

Pakistan Stock Exchange again took a turn for the worse, after previous day’s handsome recovery, as concerns over the country’s economic situation and the fate of International Monetary Fund’s (IMF) loan programme caused jitters in the market.

Adding to the investor woes, a persistent political uncertainty following PTI’s announcement of dissolution of Punjab and KhyberPakhtunkhwa assemblies and Pakistani rupee’s gradual fall further dented interest in stock buying.

“Stocks closed lower due to rupee instability and forex crisis impacting industries,” said Ahsan Mehanti, MD of Arif Habib Corp. “Political uncertainty, projections of higher inflation in December 2022 and concerns over the delay in IMF’s review in the wake of disagreement on petroleum levies and the budgeted flood losses played the role of catalysts in bearish close of the market,” he said.

At close on Tuesday, the benchmark KSE-100 index recorded a decrease of 352.25 points, or 0.88%, at 39,802.91. Topline Securities, in its report, said that the lack of confidence in Pakistan’s economy and delayed IMF programme led to profit-taking as the market touched an intra-day low of 449 points.

Major negative contributors were Engro Fertilisers, UBL, Oil and Gas Development Company, Engro Corporation and Systems Limited, which dented the index by a total of 151 points.