ISLAMABAD: The Pakistan Stock Exchange (PSX) saw a significant decline of 1,200 points on Monday, currency traders and analysts said, attributing the slump to uncertainty over the outcome of Islamabad’s talks with the International Monetary Fund (IMF) for a $1 billion tranche.
The benchmark KSE-100 index dropped by 1,264.78 points, or 1.12 percent, to 111,986.88 points, compared to Friday’s close of 113,251.66.
The development came as an IMF team arrived in Pakistan for the first review of a $7 billion loan program Islamabad secured in September.
“Foreign outflows, weak rupee, lower global crude oil prices and uncertainty over outcome of Pakistan-IMF talks this week played a catalyst role in the bearish close,” Ahsan Mehanti, CEO of Arif Habib Commodities, told Arab News.
Pakistan’s ARY News channel reported that the IMF was demanding action against tax evasion in Pakistan’s real estate sector.
“The IMF pushed for action against those misdeclaring property values,” ARY News reported, saying the government had assured the global lender it would activate the Real Estate Regulatory Authority.
Naveed Nadeem, a senior equity trader at Topline Securities Limited, said the negative sentiment at the market was driven by the lack of a positive trigger, Engro earnings falling short of expectations and shorter trading hours.
“Key stocks contributing to the downturn included ENGROH, UBL, MCB, MTL, and PPL, which together accounted for a drop of 731 points in the index,” he said.
“Despite the downturn, overall market activity saw 207 million shares traded, with a total turnover of Rs 11.8 billion.”
Pakistan Stock Exchange sheds 1,200 points amid uncertainty over IMF loan talks
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Pakistan Stock Exchange sheds 1,200 points amid uncertainty over IMF loan talks
- The benchmark KSE-100 index closed at 111,986.88 and went down by 1.12 percent from the previous day’s close
- Analyst says foreign outflows, weak rupee, lower global crude prices played a catalyst role in bearish close
Pakistan engages Saudi Arabia, China in bid to ease surging Middle East tensions
- Pakistan’s foreign minister stresses need for de-escalation in conversations with Chinese, Saudi counterparts
- Tensions in the Middle East continue to remain high as conflict between US, Israel and Iran intensifies
ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar spoke to the foreign ministers of Saudi Arabia and China on Tuesday, stressing the importance of diplomatic engagement to de-escalate tensions in the Middle East as the Iran war intensifies.
Pakistan has constantly engaged regional countries in efforts to broker a ceasefire in the Middle East, after the US and Isreal launched coordinated strikes against Iran on Feb. 28.
Iran launched fresh attacks on Gulf countries on Tuesday morning, where it has targeted US military bases in recent weeks. In addition to firing missiles and drones at Israel and American bases in the region, Iran has also been targeting energy infrastructure which, combined with its stranglehold on the Strait of Hormuz, has sent oil prices soaring worldwide.
Dar spoke to Saudi Foreign Minister Prince Faisal bin Farhan to discuss developments in the Middle East and ongoing deliberations at the UN Security Council, Pakistan’s foreign office said in a statement.
“DPM/FM shared Pakistan’s perspective, underscoring the importance of continued coordination and diplomatic engagement to support de-escalation and promote peace and stability across the region and beyond,” the statement said.
Dar, who also serves as Pakistan’s foreign minister, spoke to Chinese foreign minister Wang Yi over the telephone separately. The two discussed the evolving regional situation and broader global developments.
Dar underscored the need to ease tensions in the Middle East and the wider region during the conversation, the foreign office said.
Yi appreciated Pakistan’s constructive efforts aimed at promoting de-escalation and stability in the region, it added.
“The two leaders stressed the importance of de-escalation and emphasized the need to pursue dialogue and diplomacy in accordance with the principles of the UN Charter,” the foreign office’s statement said.
The conflict in the Middle East has hit Pakistan hard as well, forcing Islamabad to hike petrol and diesel prices by Rs55 per liter last Friday.
Pakistan’s government has also announced a set of austerity measures, which include closing schools and cutting down on government expenditures, as it evaluates petrol stocks and looks for alternative supply routes.
