Stocks dive over delay in IMF programme

Bears became aggressive at Pakistan Stock Exchange (PSX) on Wednesday as they completely sidelined the bulls and the market lost significant ground, which analysts attributed to the delay in resumption of International Monetary Fund’s (IMF) loan programme. Finance Minister Ishaq Dar reiterated that Pakistan “will not default” on international payments as the government had arranged the entire requirement of $31-32 billion for the ongoing fiscal year. Despite the minister’s remarks, investors’ sentiment weakened as they refrained from taking fresh positions, dragging the KSE-100 index into the red zone. Market participants remained under pressure over concerns about the country’s economic situation. Furthermore, persistent depreciation of the rupee against the US dollar dented the confidence of already jittery investors. At close, the benchmark KSE-100 index recorded a decrease of 523.48 points, or 1.32%, to settle at 39,279.43. Topline Securities, in its report, said that Pakistan equities had a bearish day. “The KSE-100 index opened in the green zone, touched an intra-day high at 39,867 (+64 points; or 0.16%) and intra-day low at 39,028 (-775 points; or 1.95%) before eventually settling at 39,279 (-523 points; or 1.32%),” it said.