Shares plummet 523 points on IMF delay, forex crisis

Shares at the Pakistan Stock Exchange (PSX) fell sharply for a second day on Wednesday, with analysts citing delays in the completion of the International Monetary Fund’s (IMF) ninth review, the foreign exchange crisis and exchange rate instability. The benchmark KSE-100 index lost 523.48 points, or 1.32 per cent, to close at 39,279.43 points. It reached an intraday low of 775.4 points, or 1.95pc, at 2:55pm. Head of Equity at Intermarket Securities Raza Jafri said the market’s downward trend was because of a lack of tangible progress regarding the balance of payments, including the delay in the completion of the IMF review and expected inflows from Saudi Arabia. “The government has rightly come out with assuring statements that the IMF programme will be complied with, but the sentiment is low and investors want to see words backed by action,” he said. Arif Habib Corporation’s Ahsan Mehanti said stocks fell because of the Pakistani rupee’s instability and the impact of the forex crisis on industrialists.