KSE-100 sheds over 400 points amid political tension, speculation over IMF deal

Stocks fell on Monday amid political polarisation and speculation that Staff Level Agreement (SLA) with International Monetary Fund (IMF) over a long-awaited bailout tranche may not materialise after all. The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index opened on a positive note but turned bearish within minutes and maintained a steady decline through the day, eventually shedding 404.12 points, or 0.97 per cent, to close at 41,195.06 points. Mohammad Arbsh, manager equities with Siddiqsons Limited, said that the expectations of new taxation with the upcoming budget coupled with Imran Khan’s statement that there are 80 per cent chances that he would be arrested on Tuesday sent the market on a downward spiral. Meanwhile, Aba Ali Habib Securities’ Salman Naqvi said political polarisation and crucial court summons this week have made the market uncertain, and due to which despite having attractive rates there is no buying and the volumes have also diminished.