Shares at PSX shed more than 500 points despite IMF deal

Shares at the Pakistan Stock Exchange (PSX) on Thursday witnessed selling pressure, shedding more than 500 points. The benchmark KSE-100 index declined by 589.95 points, 0.72 per cent, to close at 81,657.96 points from the previous close of 82,247.91 points. However, it is important to note that the index hit a life-time high in opening trade, rising to a record high of 82,905.73 points before reversing those gains, hours after the International Monetary Fund’s (IMF) board approved a long-awaited $7 billion bailout deal. Yousuf M Farooq, director research at Chase Securities, said, “Foreign selling from FTSE rebalancing has soaked up local liquidity.” “IMF deal was expected and built into prices,” he added. Yesterday, the Fund’s Executive Board agreed to loan Pakistan $7 billion to bolster its faltering economy, approving a relief package that the Prime Minister Shehbaz Sharif-led government has pledged would be the last from the Fund.