The capital market began the new week of negotiation with a cautious feeling on Monday, while investors are engaged in a wide increase in profits in the middle of a lack of new positive triggers.
Market players have remained suspicious of the current results season, which has so far failed to considerably increase the feeling. In addition, concerns about the drop in cement prices and uncertainty before the next review of the International Monetary Fund (IMF) have maintained investors on the sidelines.
Muhammad Saad Ali, Research Director at Intermarket Securities LTD, underlined the factors that influence the market, affirming: “Generally, profits among institutional investors due to the lack of new positive triggers and the current results season that Investors do not note from afar. “”
“In addition, concerns about the drop in cement prices. Finally, the market waiting for the IMF exam to pass before building new positions, “he added.
The KSE-100 index of the Pakistan Stock Exchange (PSX) recorded a modest gain of 50.21 points (0.04%) to reach an intradible summit of 112,851.14, before retiring while investors exercised caution in the midst of external and interior economic concerns.
The market also recorded a minimum of 111,857.33, reflecting a drop of 943.6 points (-0.84%) compared to the closing of the previous session of 112,800.93.
The Minister of Finance Muhammad Aurangzeb has reaffirmed the government’s commitment to eliminate tax evasion and to combat corruption, while Pakistan engages with the IMF for crucial economic negotiations.
Addressing the media, the Minister of Finance confirmed that the technical mission of the IMF had arrived in Pakistan for a three -day visit to discuss climate funding and economic reforms.
He added that another IMF delegation is expected to arrive next month to discuss issues relating to the prolonged funds of $ 7 billion in the country (EFF).
Sources have revealed that an IMF delegation of four members are currently in Pakistan and has started introductory meetings with government representatives. Technical negotiations will focus on green budgeting, climate monitoring and reports, as well as climate budgeting projects.
Climate -related discussions come in the context of Islamabad demand from $ 1 to 1.5 billion in funding to increase the existing loan by $ 7 billion under the EFR up to 8 or 8, $ 5 billion.
IMF exam is a crucial step to obtain continuous financial support and maintain economic stability.
Pakistan exchange reserves increased by $ 35 million during the week ending on February 14, in total the reserves held by the State Bank of Pakistan (SBP) to $ 11.20 billion. However, the country’s external financing needs continue to put pressure on reserves, analysts closely monitored developments in funding and export performance.
The total liquid foreign reserves amounted to $ 15.95 billion, with commercial banks with $ 4.75 billion. Despite the last increase, reimbursements in external debt remain a significant challenge, as evidenced by a drop of $ 252 million in reserves recorded the previous week, bringing the total SBP reserves to $ 11.17 billion on February 7.
The external account of Pakistan has shown signs of improvement, largely pulled by an increase in funding of funds and better export performance. However, the obligations of receivables in progress continue to weigh on exchange reserves, which makes economic negotiations with world lenders all the more critical.
The KSE-100 index closed at 112,801 points on Friday, winning 716 points (0.64%) each week, extending its positive performance for the second consecutive week. Investors have taken a stand in certain sectors, such as business profits and external economic developments have shaped the negotiation activity.
Despite the weekly gains, market analysts believe that investors remain cautious before the IMF exam, institutional investors opting for profits in the middle of a lack of fresh catalysts.