Bearish week on PSX despite IMF deal

Despite receipt of the much-awaited first tranche of $1.03 billion following approval of the new 37-month $7 billion Extended Fund Facility by International Mon­etary Fund’s executive board on Sept 25, the benchmark KSE 100 index closed the outgoing week on a bearish note. The market turned depressed primarily due to investors’ worries about the potential impact of stringent IMF conditions, which could lead to double-digit inflation in the current fiscal year due to heavy industrial taxation and expensive energy, the ending of subsidies, etc. Throughout the week, political tensions continued to fuel negative sentiments, which made foreign investors uneasy. However, on the eve of the IMF board meeting, a strong rally pushed the benchmark index to its highest-ever closing at 82,242.92.