Pakistan bourse tumbles again as IMF seeks combination of measures
KARACHI: The Pakistan equity market remained under pressure on Monday, as the International Monetary Fund (IMF) has asked Pakistan to take a combination of measures, including allowing adjustments in the exchange rate and further tightening of monetary and fiscal policies to curtail the rising current account deficit, dealers said.
An analyst at Pearl Securities said both sides concluded technical-level discussions and agreed to continue talks at a higher level in Washington from next week.
“On the other hand, weekly inflation surges 1.2 per cent, while the PM’s aide said that inflation will continue unabated till April. Therefore, the index closed below the psychological level of 44,000 points.”
The Pakistan Stock Exchange KSE-100 shares index shed 1.46 per cent, or 647.89 points, to close at 43,829.35 points. The KSE-30 shares index shed 1.68 per cent, or 295.25 points, to close at 17,229.55 points.
As many as 548 scrips were active, of which 61 advanced, 470 declined and 17 remained unchanged. The ready market volumes stood at 226.57 million shares, compared with the turnover of 176.06 million shares in the last trading session.
An analyst at Arif Habib Limited said the market tumbled again on concerns over high energy and commodity prices, as well as prospects of further electricity tariff hikes that could lead to erosion of purchasing power and an economic contraction.
“Foreigners continued selling stocks unabated that brought the index down 759 points during the session. Increase in [the] international oil prices failed to have a material impact on the stock prices of E&P. Selling pressure was witnessed across-the-board; however, technology, cement, O&GMCs contributed to downward trend.”
“Amid [the] lack of major positive triggers in the market, investors are advised to stay cautious and build exposures across-the-board on major dips, keeping medium-term horizon in mind,” Neelam Naz at JS Global Capital said.
The companies that reflected the highest gains included Colgate Palmolive, up Rs52 to close at Rs2,500/share; and Gatron Industries, up Rs36 to close at Rs516/share.
The companies, which reflected the most losses included Nestle Pakistan, down Rs196.5 to close at Rs5,805/share; and Systems Limited, down Rs35 to close at Rs690.361/share.
The highest volumes were witnessed in WorldCall Telecom with a turnover of 41.36 million shares. The scrip shed 28 paisas to close at Rs2.25/share; followed by Telecard Limited with a turnover of 13.89 million shares. It shed Rs1.4 to close at Rs17.27/share. Treet Corp remained the third with a turnover of 9.37 million shares. It shed Rs4.35 to finish at Rs53.66.
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