PSX down due to potential gas price hike

• The market opens the week in the red, down 1.13% by the end of the session.
• The KSE-100 fell 1,331.86 points to close at 116,255.12.
• An intraday high of 118,735.09 was reversed to a low of 115,941.94.

The stock market opened in the red on Monday with mixed sentiment as investors navigated between optimism about improving economic indicators and concerns about possible policy measures.

The market saw significant selling pressure as concerns over possible increases in natural gas prices weighed heavily on investor sentiment.

The benchmark Pakistan Stock Exchange (PSX) KSE-100 closed at 116,255.12, down 1,331.86 points or -1.13% from the previous session’s close of 117,586.98.

The market hit an intraday high of 118,735.09, before reversing sharply to reach a low of 115,941.94.

The pressures on the market arose after reports of a possible increase in the price of natural gas. Ismail Iqbal Securities managing director Ahfaz Mustafa said: “The market is under pressure at midday due to reports of gas price hike.”

“The IMF has asked Pakistan to increase the fixed prices of natural gas for industries which may affect the balance sheets of all utilities and general industries related to natural gas,” he added.

The proposed levy on the supply of natural gas to industrial captive power plants (CPPs) is part of the IMF’s structural benchmarks under the $7 billion Expanded Fund (EFF). Compliance with these measures is critical for Pakistan to secure the next tranche of $1 billion in March.

Pakistan is set to receive a $20 billion loan from the World Bank over the next decade under the Country Partnership Framework 2025-35, sources said. This funding aims to foster sustainable economic growth in key sectors.

The loan program, pending approval on January 14, is aligned with the government’s National Economic Transformation Plan, which targets ambitious economic goals including doubling GDP growth and halving poverty over five years.

On the inflation front, short-term inflation, as measured by the Sensitive Price Index (SPI), showed a marginal weekly decline of 0.26% for the week ending January 2, 2025, while year-on-year inflation for the same week was recorded an increase of 3.97%.

Meanwhile, textile exports in the first half of 2015 rose 10% year-on-year to $9.9 billion, reflecting resilience in one of the country’s key sectors.

The PSX’s KSE-100 showed positive momentum on Friday, hitting an intraday high of 117,891.62 before closing at 117,586.98, up 467.33 points or 0.4% from the previous session’s close.