Economic worries weigh on stocks

Pakistan Stock Exchange (PSX) on Monday displayed a mixed performance but registered losses as profit-taking intensified towards the end of March quarter amid growing concerns over economic uncertainty. In the morning, trading began on a robust note, with the KSE-100 index touching its intra-day high of 67,304.36 points. However, the positive momentum died down before midday following release of dismal data that showed a trade deficit of $2.2 billion in March, reflecting a 56.3% year-on-year (YoY) increase. Additionally, speculation surrounding the outcome of Pakistan’s upcoming talks with the International Monetary Fund (IMF) on April 14, along with investor concerns over the escalating power tariffs added to the downward pressure on the index. Sectors such as oil and gas, information technology, textile and cement mainly had a negative impact on the market.