The Pakistan Stock Exchange (PSX) came under pressure on Wednesday as investors booked profits after a strong rally the previous day. The benchmark KSE-100 Index lost almost 900 points during intra-day trading.
By noon, the index stood at 164,606.84 points, down 886.74 points or 0.54%. The decline reflected heavy selling in key sectors, including cement, banking, oil and gas exploration, power generation, and refinery stocks.
Major companies such as Attock Refinery Limited (ARL), Hub Power Company (HUBCO), Sui Northern Gas Pipelines (SNGPL), Sui Southern Gas Company (SSGC), MCB Bank, National Bank of Pakistan (NBP), United Bank Limited (UBL), and DG Khan Cement (DGKC) were all trading lower.
The downturn at the PSX coincided with crucial talks between Pakistan and the International Monetary Fund (IMF). Sources said the IMF sought progress on the National Finance Commission (NFC) process, which remains a major hurdle in resource distribution between the Centre and provinces.
Technical discussions are ongoing between the Ministry of Finance and the IMF mission under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). These negotiations form part of Pakistan’s $7 billion programme.
The decline followed a strong performance on Tuesday, when the KSE-100 surged 1,645.90 points, or 1%, to settle at 165,493.59. The rally was fueled by broad-based buying and optimism over economic developments.
Global markets also influenced sentiment. Wall Street futures slipped, with both the S&P 500 and Nasdaq down 0.5%. Gold prices reached a record $3,875 per ounce for the third session in a row.
In Asia, Japan’s Nikkei dropped more than 1% after a strong quarterly rally, while South Korean shares gained 0.6% on export growth.
Market analysts believe that ongoing IMF discussions, coupled with global economic uncertainty, will keep the PSX volatile in the coming days.
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