Pakistan Stock Exchange PSX witnessed downturn after US warns IMF against the bailout, PSX index recorded -953 points at 42,712 which were down 1.9 percent from the earlier progress.
The market witnesses three positive sessions contributing around 2400 plus points at the local bourse, 275 million shares were traded which were down 27 percent from Monday. However, selling pressure came after this in the wake of economic news for the United States.
The Secretary of State Mike Pompeo warns IMF in a statement that the United States would be closely watching out IMF to bail out Pakistan. He further said, “IMF tax dollars and American dollars shouldn’t be the part of bailing out Chinese bondholders or China itself.”
The Secretary of State has also warned Pakistan for using IMF bailout package, the US says Pakistan should enter the bailout agreement to pay off Chinese debt. This sends a strong message across the stock market in Pakistan, hurting the market sentiments.
The Cement sector was sledgehammered share prices and trading volume was down after the news. CHCC was down by 5 percent, PIOC by 5 percent, FCCL by 4.3 percent, DGKC by 4.4 percent and LUCK by 4.4 percent.
However, FFL and FFBL were both positive 5 percent, this upward trend was shown after the Chinese company shown interest in buying 51 percent of shares in Fauji Foods Limited (FFL).
Also, commercial banks and fertilizers collectively contributed 318 points in decline, the trading activity has slowed down as compared to Monday, 274 million shares were traded on Tuesday down 27 percent and the value traded was decline by 9 percent.
According to experts, the trading fluctuation has another critical indicator which is the Rupee-Dollar price uncertainty, the Rupee appreciated Rs0.92 at Rs.124.18 in the interbank market.