Stocks stay in green despite delay in IMF board approval

Despite mounting political tensions and an unexpected delay in the approval of the Staff-Level Agreement reached with the International Monetary Fund in July for a new $7 billion Extended Fund Facility, the falling T-bill yields and robust corporate results helped the stock market close the outgoing week in green territory. The non-inclusion of Pakistan in the agenda of the IMF’s Executive Board meeting for August 28 hit market sentiments, given the country’s challenging external debt management position. However, the growing expectations of a third straight interest rate cut kept buying momentum intact during the week. Arif Habib Ltd (AHL) said the week began under slight market pressure due to Pakistan’s absence from the IMF Executive Board’s schedule, raising concerns about the disbursement of the tranche.