The benchmark KSE-100 index lost 67.81 points, or 0.16 percent, to settle at 42,458.14 points.
Early optimism followed Pakistan and the IMF’s “broad agreement” on the budget for the fiscal year 2022–2023, which called for raising the Federal Board of Revenue (FBR) objective and reducing spending in order to generate a revenue surplus in the next fiscal year.
Investors finally chose to cherry-pick equities at competitive pricing overall after becoming optimistic about the possibility that the protracted economic turbulence would come to an end.
However, this recovery was only temporary since investors recovered on the impression that the IMF had resumed its programme. However, as they realised that the programme was remained on hold, all gains were lost by the end of the session.
He continued by saying that the market will keep its upward trend since the Pakistani rupee would now appreciate against the US dollar, which would be another good sign for the country’s economy.
The expert was of the opinion that, among other things, the following variables affect the benchmark KSE-100 recovery percentage:
Specifics of the “broad agreement” between Pakistan and the IMF
The global market’s direction for commodities prices
However, the aforementioned elements will be crucial in determining the market’s course, he said. “Valuations are quite favourable at the moment, and PSX may rebound dramatically.
Samiullah Tariq, the Head of Research at Pakistan-Kuwait Investment Company, said that the stock market has more room for growth and has a 7-8 percent recovery potential.
The four-month period of uncertainty that took a severe toll on financial markets, unleashed a wave of inflation, and undermined investor and market confidence may be ended by the “broad agreement,” even if it falls short of a staff-level accord.