PSX retreats despite $1.2bn IMF lifeline

Dawn reported that the Pakistan Stock Exchange gave back its early gains on Thursday, with the benchmark KSE-100 index ending 1,138 points, or 0.68 per cent, lower at 167,442. The session had opened strongly after a staff-level agreement between Pakistan and a visiting IMF mission, with the index climbing roughly 906 points before sellers emerged. Topline Securities put the intra-session range at 167,450 to 169,487.

Profit-taking set in mid-session once oil prices climbed nearly 4 per cent on fears of supply disruption, including attacks on oil tankers and fresh friction between the United States and Iran. Higher import costs and inflation worries added to the pressure on sentiment. Index heavyweights United Bank, Systems Ltd, Habib Bank, Bank Alfalah and Pakistan Petroleum were among the largest drags, together removing about 601 points from the index.

Trading participation thinned sharply, with volume down 37.65 per cent to 365.86 million shares and traded value falling 20.76 per cent to Rs17.6 billion. K-Electric led the volume chart with 29.6 million shares. Analysts expect volatility to persist, with the 167,000 to 170,000 band viewed as pivotal for the closing session of the week.