- Kse -100 ends at 116,439.62, down 2,002.55 points, or -1.69%.
- Intraday High reaches 118,797.70, up 355.53 points, or 0.3%.
- The index drops to a level of 116,257.51, down 2,184.66 points, or -1.84%.
The scholarship opened the week on a negative note, plunging strongly in the middle of concerns in the cement sector, low trading volumes before the AID UL FITR and pressures of the bearing week.
The KSE-100 index of Benchmark KSE-100 of Pakistan Stock Exchange (PSX) fell by 2,002.55 points, or -1.69%, to end at 116,439.62. The high of the day was recorded at 118,797.70, while the bottom affected 116,257.51 – a fall of 2,184.66 points, or -1.84% compared to the closing of the previous session of 118,442.17.
According to market analysts, investors’ feeling has been reduced by the news of the increase in charges of the cement sector by the government of Khyber Pakhtunkhwa.
“One of the reasons is that there are news in the cement sector suggesting that KP increases the royalties, which has lowered cement actions, and in turn lowered the market,” said Sana Tawfik, research manager at ARIF Habib Limited.
“Secondly, trading volumes are low because Eid is approaching. Finally, this is the week of rolling. These three factors are therefore essentially the reason why the market is declining,” she added.
The sudden drop comes after the PSX experienced a solid rally during last week, motivated by optimism on the progress of talks with the International Monetary Fund (IMF) and the expectations of reforms in the energy sector. However, new developments over the weekend have somewhat blocked this momentum.
In a setback in the real estate sector, the IMF would have rejected Pakistan’s request to reduce transaction taxes for the real estate sector. While the former government representatives said that an agreement in principle had been concluded to reduce the restraint to restraint on property purchases by 2% from April 1, the IMF specified that it had not approved any concession. This follows similar refusals of the fund to reduce tax rates of tobacco and drinks.
The world lender has also insisted on written insurance in Pakistan that provincial governments will not engage in the supply of wheat, in the context of the conditions to achieve a staff level agreement (SLA) under the installation of extended funds of $ 7 billion (EFF). However, negotiations remain in progress.
Friday, the Minister of Finance, Muhammad Aurangzeb, brought an optimistic tone, expressing the confidence that Pakistan would soon receive positive news from the IMF. He told journalists that negotiations were in their last stage without a major obstacle on the way, reaffirming government’s commitment to tax discipline and economic reforms.
Despite increasing pressures, some macroeconomic indicators remain encouraging. The sensitive price index (SPI), which follows short -term inflation, recorded a drop of 0.35% weekdays over the week ending on March 20, reflecting the continuous relaxation of inflationary pressures.
Friday, the PSX had already shown signs of fatigue, ending its sequence of victories of six sessions with the KSE-100 index sliding of 327.60 points, or 0.28%, to end at 118,442,17. During this session, the index reached a summit of 119,405.91 and dropped to 118,334.40.