PSX falls abruptly amid concerns of cement sector

• The KSE -100 closes to 116,439.62, reducing 2,002.55 points, or -1.69%.
• Intractional High Impact 118,797.70, increased by 355.53 points, or 0.3%.
• The index is reduced to a low of 116.257.51, below 2,184.66 points, or -1.84%.

The bourse opened a week in a negative note, sinking abruptly amidst cement worries, low volume of trading in front of the overturning week.

The KSE -100 reference index of the Pakistan Stock Exchange (PSX) decreased 2,002.55 points or -1.69%to close at 116,439.62. The high of the day was recorded at 118,797.70, while the low reached 116.257.51 -2,184.66 points or -1.84% from the closure of the previous session 118.442.17.

According to market analysts, investors’ feeling has undergone news of increased categories of rights in the cement sector by the KHYBER PAKHTUNKHWA.

“One reason is that there are news in the cement sector that suggests that KP is increasing rights, which has caused a decline in cement reserves and that it has in turn pulled the market down,” said Sana Tawfik, head of the research at Arif Habib Limited.

“Secondly, transaction volumes are low because the EID is approaching. Finally, it is the overthrow week, so these three factors are basically the reason why the market is down,” he added.

The sudden fall comes after the PSX witness of a strong race last week is led by optimism about progressing talks with the International Monetary Fund (IMF) and the expectations of energy reforms. However, fresh developments during the weekend have somewhat delayed this momentum.

In a setback in the real estate sector, the IMF has rejected Pakistan’s request to reduce real estate trading taxes. While previous government officials claimed that an agreement had first been reached to reduce the withholding tax in real estate markets by 2% from April 1, the IMF has stated that no such concession has approved. This follows similar refusals from the Fund to reduce tax rates for tobacco and beverages.

The global lender also insisted on written assurances from Pakistan that the provincial governments would not participate in wheat supplies, in the context of the conditions for reaching a personnel level agreement (SLA) on the basis of the EXTEND FUND (EFF) of the 7 billion dollars. However, the negotiations remain in progress.

Finance Minister Muhammad Aurangzeb on Friday hit an optimistic tone, expressing the confidence that Pakistan will soon receive positive news from the IMF. He told reporters that the negotiations were in their final stages without significant obstacles in the way, confirming the government’s commitment to fiscal discipline and economic reforms.

Despite the positioning pressures, some macroeconomic indicators remain encouraging. The Sensitive Price Index (SPI), which monitors short -term inflation, declined by 0.35% weekly weeks per week ending March 20, reflecting the continuation of the relaxation of inflationary pressures.

On Friday, the PSX had already shown signs of fatigue, ending the six-session victory with the KSE-100 index slipping by 327.60 points or 0.28%, closing at 118.442.17. During this meeting, the index reached a high level of 119.405.91 and sank as low as 118.334.40.