PSX drops over 800 points as investors await IMF's $1bn tranche decision

KAREACHI (Dunya News) – The Pakistan Stock Exchange (PSX) extended its losing streak for a second consecutive session, as investors engaged in profit-taking ahead of a crucial economic review by the International Monetary Fund (IMF) for the approval of a new $1 billion loan tranche.

During intraday trading, the KSE-100 index has plunged 860.39 points to drop to 155,280.85, marking a decline of 0.55 percent compared to previous close of 156,141.24 points.

The schedule for the second economic review under the IMF’s Extended Fund Facility (EFF) has been finalised, and negotiations for a new $1 billion tranche are expected to take place at the end of this month.

According to sources, the IMF delegation will visit from September 25 to October 8. In the first phase, technical-level talks will be held, followed by policy-level negotiations in the second phase. Discussions will involve the Ministry of Finance, Ministry of Energy, Planning Commission, and the State Bank.

Additionally, talks will be conducted with other institutions and ministries, including FBR, OGRA, and NEPRA, while the IMF team will hold separate meetings with all four provinces.
Sources indicate that once the second economic review with the IMF is successfully completed, the IMF Board is likely to approve the release of the next $1 billion tranche for Pakistan.

A day earlier, the 100-index turned bearish on Thursday, losing 879.55 points, a negative change of 0.56 percent, closing at 156,141.25 points against 157,020.80 points on the last working day.

A total of 1,279,942,235 shares were traded during the day as compared to 996,270,293 shares the previous day, whereas the total value of shares traded was recorded at Rs50.207 billion against Rs52.727 billion a day earlier.

As many as 487 companies transacted their shares in the stock market; 225 recorded gains and 223 sustained losses, whereas the share prices of 39 remained unchanged.