Monday saw a bearish trend at the Pakistan Stock Exchange (PSX) with shares dropping over 250 points post an International Monetary Fund (IMF) visit. The KSE-100 index initially traded sideways but later took a dive, closing at 75,084, down by 258.34 points, or 0.34pc.
Yousuf M. Farooq from Chase Securities noted concerns over a possible electricity price hike and added taxation. Yet, he emphasized that the recent market rally does warrant some consolidation.
Akseer Research’s Awais Ashraf attributed the downward trend to uncertainties surrounding ongoing government-IMF negotiations and geopolitical tensions post the tragic death of Iranian President Ebrahim Raisi.
The IMF’s demands for tax revenue hikes, spending cuts, and tight monetary policies also loom over market sentiments. Next Capital Limited’s Shahab Farooq echoed the sentiments, highlighting profit-taking following significant gains in the past sessions and apprehensions about inflationary measures in the upcoming budget.