Stocks fall on IMF, security concerns

Security concerns amid an inordinate delay in the IMF executive board’s approval for the much-awaited first tranche under the $7 billion Extended Fund Facility kept the market sentiments depressed, forcing the benchmark index to close the outgoing week on a bearish note. However, a rating upgrade by Moody’s and the Ministry of Finance’s projection of Consumer Price Index-based inflation is likely to fall in the range of 9.5 to 10.5pc in August boosted investor expectations of a third straight cut in the State Bank of Pakistan’s policy rate in upcoming Sept 12 monetary policy committee meeting, helped the market to trim some losses on improved economic outlook. Arif Habib Ltd (AHL) said the market remained lacklustre throughout the week amid ongoing concerns about Pakistan’s absence from the IMF’s upcoming executive board meeting agenda. However, Moody’s upgraded Pakistan’s credit rating on Wednesday from Caa3 to Caa2.