Profit-Taking Erases KSE-100’s Intra-Day Gains

The stock market in Pakistan saw a mixed performance on Wednesday as investors booked profits in the last hour of trading and the KSE-100 index ended slightly lower.

The index, which tracks the performance of the top 100 companies listed on the Pakistan Stock Exchange (PSX), opened on a positive note and reached an intra-day high of 66,150.95 points, supported by buying interest in energy and banking sectors.

However, the momentum could not sustain and the index slipped to 65,656.62 points at close, down by 0.11% or 69.42 points.

Analysts said the market sentiment was cautious ahead of the final review of the International Monetary Fund (IMF) programme, which is expected to start from next week.

Pakistan is seeking a fresh IMF deal to boost its $350 billion economy, which is facing challenges such as high inflation, low reserves and high external financing needs.

“The market is waiting for clarity on who will lead the finance ministry as Pakistan begins talks with the IMF,” Sana Tawfik, an analyst at Arif Habib Limited (AHL), told Business Recorder earlier during the session.

According to media reports, interim finance minister Dr Shamshad Akhtar is a strong candidate for the finance minister post.

In another development, Muhammad Aurangzeb, the CEO of HBL, the largest bank in Pakistan, is likely to join the finance team of newly elected Prime Minister Shehbaz Sharif as his special assistant on finance, sources said.

Aurangzeb, who heads HBL, may be appointed as Special Assistant to the Prime Minister on Finance, two sources said - one in the finance ministry and the other with direct knowledge of discussions.

A final decision is yet to be taken. Sharif has to pick a cabinet after being sworn in on Monday - most importantly a finance team, with Pakistan’s current $3 billion, nine-month IMF programme expiring in March.