- The market opened the week in the red and fell 1.13% at the end of the session.
- The KSE-100 index fell 1,331.86 points, closing at 116,255.12.
- The intraday high of 118,735.09 reversed to hit the low of 115,941.94.
The capital market opened the week Monday in the red with mixed feelings, as investors navigated between optimism about improving economic indicators and concerns about possible policy measures.
The market saw significant selling pressure as concerns over possible gas price increases weighed heavily on investor confidence.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 116,255.12, marking a decline of 1,331.86 points, or -1.13%, from the previous session’s close of 117,586.98.
The market hit an intraday high of 118,735.09, before reversing sharply to hit a low of 115,941.94.
Market pressures emerged following reports of a possible rise in gas prices. Ahfaz Mustafa, CEO of Ismail Iqbal Securities, said: “The market is under pressure at noon due to reports of an increase in gas prices.”
“The IMF has asked Pakistan to increase captive gas prices for industries which can potentially damage the balance sheets of all gas-related utilities and general industries,” he added.
The proposed levy on the supply of gas to industrial captive power plants (CPPs) is part of the IMF’s structural benchmarks under the $7 billion Expanded Financing Facility (EFF). Compliance with these measures is essential for Pakistan to secure the next tranche of $1 billion in March.
Pakistan is set to receive a $20 billion loan from the World Bank over the next decade under the National Partnership Framework 2025-35, sources said. This funding aims to strengthen sustainable economic development in key sectors.
The loan program, awaiting approval on January 14, aligns with the government’s National Economic Transformation Plan, which targets ambitious economic goals including doubling GDP growth and halving poverty over five years.
On the inflation front, short-term inflation, as measured by the Sensitive Price Indicator (SPI), showed a slight weekly decline of 0.26% for the week ending January 2, 2025, while year-on-year inflation for the same week recorded an increase of 3.97%.
Meanwhile, textile exports in the first half of FY25 increased 10% year-on-year to $9.9 billion, reflecting the resilience of one of the country’s key sectors.
The PSX’s KSE-100 index demonstrated positive momentum on Friday, reaching an intraday high of 117,891.62 before closing at 117,586.98, up 467.33 points or 0.4% from the closing of the previous session.