Slipping IMF deal pounds PSX hard; 432 points wiped out

KARACHI: Fears generating from lack of progress on revival of the International Monetary Fund (IMF) loan programme pounded Pakistan Stock Exchange (PSX) hard on Wednesday, with the benchmark KSE-100 Index losing 432.24 points (-1.06 percent) to close at 40,220.79 points.
The market opened on a positive note but turned bearish within the first 15 minutes trading. The benchmark index hit its day-high at the start of trading and then witnessed selling pressure. The investors remained cautious amid uncertainty over the resumption of the IMF loan programme, which has remained stalled since November last year.
According to market gurus, the budget for fiscal year 2024 proposed a host of taxes which had discouraged investors. They referred to an “across-the-board super tax” on industry, a 10pc tax on bonus shares and a 50pc tax on “abnormal profits” as weighing down sentiment, saying that there is a “lack of incentives for the economy” in the budget.
They said that less than 10 days are left before Pakistan’s Extended Fund Facility (EFF) with the IMF expires (on June 30) but no agreement has been signed yet. They warned that the IMF deal is crucial for Pakistan and there are fears of a default without it.
The KSE-100 Index moved in a range of 613.63 points showing an intraday high of 40,804.87 points and a low of 40,191.24 points. Among other indices, the KSE All Share Index shed 354.34 points (-1.30 percent) to close at 27,283.85 points, while KMI All Share Islamic Index shed 279.74 points (-1.40 percent) to close at 19,984.09 points.
Total volumes traded for the KSE-100 Index remained 47.52 million against 73.77 million a session earlier, showing a decrease of 26.25 million shares. The overall market volumes decreased by 27.84 million to 97.02 million shares against 124.86 million shares a session earlier.
Among scrips, WTL topped the volumes with 11.65 million shares, followed by BIPL (7.86 million) and SHEL (4.66 million). Stocks that contributed significantly to the volumes included WTL, BIPL, SHEL, BOP, and OGDC, which formed over 33 percent of total volumes. – TLTP