Pakistan’s stock market closed in the red for the second consecutive day of the business week, with the benchmark KSE-100 index slipping below the 119,000-point mark.
Mounting investor concerns over a downward revision in GDP growth and anticipated budgetary conditions tied to potential IMF demands have continued to weigh heavily on the market.
The bearish sentiment prevailed throughout Tuesday’s trading session. Market participants reacted strongly to fresh economic indicators signalling a slowdown in growth, sparking fears about fiscal tightening and reduced investor incentives in the upcoming federal budget.
Former PSX Director Zafar Motiwala attributed the downturn to economic uncertainty and a cautious investor climate, stating that many are holding back due to concerns over the possible terms of Pakistan's next IMF agreement.
By the end of the trading day, the KSE-100 index had dropped 718 points, settling at 118,971. The market witnessed a trading volume of approximately 430 million shares, amounting to Rs 20 billion in transaction value.
Despite the active trade, the mood at the Pakistan Stock Exchange (PSX) remained somber, with analysts pointing out that policy clarity and economic stability are needed to restore investor confidence.
With the federal budget on the horizon and negotiations with the IMF expected to shape the government’s fiscal roadmap, market performance may remain volatile in the days ahead.
