PSX: A bearish week despite IMF deal

KARACHI (Staff Reporter): The Pakistan Stock Exchange remained under pressure last week, closing in negative territory even after Pakistan secured a Staff-Level Agreement with the IMF.

The bearish sentiment wiped out Rs156.39 billion from investors’ wealth, bringing total market capitalization down to Rs18,569 billion.

The KSE-100 Index lost 1,066 points, down 0.6% week-on-week, to settle at 167,089. The index fluctuated between 169,487 points at the top and 167,918 points at the bottom during the volatile sessions.

Financial analyst Jibran Sarfraz said the IMF deal had already been factored into share prices, leading to profit-booking at higher levels. Fresh concerns including prolonged Middle East uncertainty, a rise in global bond yields, and expectations of an interest rate hike by the State Bank of Pakistan weighed on sentiment.

“The anticipation of a tighter monetary policy particularly hit debt-heavy sectors such as cement, steel and technology.” Jibran added.

Trading activity weakened sharply. Average daily volumes dropped 18.6% to 427 million shares, while average value fell 2% to $6.7 million.

Foreign selling continued, though local institutional buying offered some cushion.

Jibran expected the market to stay range-bound, with focus on the SBP policy announcement, quarterly results and the IMF Executive Board’s final approval for the tranche. He recommended a cautious approach with preference for high dividend-yield and defensive plays until rate clarity emerges.

Long-term fundamentals, however, are still seen as positive due to economic stabilization and improving corporate earnings.