PSX down despite IMF agreement

KSE-100 index sheds 1,138 points after early rally

KARACHI:

Pakistan's benchmark KSE-100 index fell over 1,130 points on Thursday despite the country's staff-level agreement with the International Monetary Fund (IMF), as renewed regional tensions added to selling pressure.

The index initially gained around 900 points and climbed to the intra-day high near 169,500 before reversing course, closing at 167,441.91, down 0.68%. Heavyweights including UBL, Fauji Fertiliser and Systems Limited led the decline, while market turnover also dropped sharply to 365.9 million shares from 586.9 million in the previous session. At the close of trading, the KSE-100 index of the Pakistan Stock Exchange (PSX) fell 1,138.50 points, or 0.68%, and settled at 167,441.91.

Arif Habib Limited (AHL) reported that the KSE-100 opened with early strength, climbing to the intra-day high near 169,500 before selling pressure and resistance pushed it lower. The benchmark closed at 167,441.9, down 1,138.5 points, or 0.68%, with market breadth negative as 76 index constituents fell against only 23 gainers. PSO, LOTCHEM and Abbott contributed the largest positive points, while UBL, Fauji Fertiliser and Systems Limited were the main drags. Regular-market turnover fell to 366 million shares.

The report linked the session's tone to two external developments. Pakistan and the IMF reached a staff-level agreement that could unlock roughly another $1.2 billion under the Extended Fund Facility and Resilience and Sustainability Facility once the executive board approves it, offering potential relief against inflation and the fiscal effects of the Middle East conflict.

Separately, Houthi strikes on two Saudi airports that killed three people and injured dozens reinforced regional risk, while a government comment that Pakistan may hit its 30% electric-vehicle sales target for 2030 earlier than planned as petrol prices encourage switching received only a brief mention. Technically, Arif Habib observed that the index had turned down from its first resistance zone; a further slide through 165,500 would open the path towards 160,000. The accompanying Bloomberg chart and PSX tables showed the day range of roughly 2,000 points and confirmed the close near the session low, consistent with independent reports of profit-taking after the prior day's modest gain.

Topline's market review noted that the KSE-100 index witnessed a volatile session, initially gaining around 906 points following positive sentiment surrounding Pakistan's staff-level agreement with the IMF. However, the early gains failed to sustain as investors resorted to profit-taking at higher levels, resulting in a 1,138-point (-0.68%) decline to close at 167,442. The index traded in a wide range of 167,450-169,487 during the session.

Index-heavy stocks remained under pressure, with UBL, FFC, SYS, EFERT, and POL emerging as the major detractors, collectively shaving 394 points off the KSE-100 index. Despite the decline in the benchmark, market activity remained modest, Topline said. Overall trading volumes were recorded at 365.9 million shares compared with the previous session's tally of 586.9 million. The value of shares traded during the day was Rs17.7 billion.

Shares of 496 companies were traded. Of these, 130 stocks closed higher, 324 fell, and 42 remained unchanged.

K-Electric was the volume leader with trading in 29.7 million shares, losing Rs0.08 to close at Rs5.96. It was followed by Cnergyico Pk with 21.3 million shares, losing Rs0.34 to close at Rs12.39, and Waves Home Appliances with 16.9 million shares, losing Rs0.08 to close at Rs7.77. Foreign investors sold shares worth Rs245 million, the National Clearing Company reported.