February 25, 2024

PSX weekly review: In a volatile rollover week, stocks only manage a little rise

KARACHI: The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index fluctuated between the red and green, making trading there turbulent for most of the sessions during the previous futures rollover week. It increased just 73 points, or 0.18 percent, to close at 40,150 points, maintaining its previous level.

The stock market started the week off poorly as investors remained on edge due to political and economic uncertainty. In addition, amid doubts about the release of the International Monetary Fund (IMF) tranche, the Pakistani rupee resumed its wild decline against the US dollar (hitting an all-time low of 239.94). Volatility increased as the current account deficit increased by 39% year over year in June 2022 to reach $2.3 billion.

However, the mood changed for the better as finance minister Miftah Ismail emphasized that all preparatory actions for the restart of the IMF program had been taken. Additionally, the acting governor of the State Bank of Pakistan (SBP) supported the finance minister’s remarks and refuted predictions of a near-term default on international payments.

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