PSX turns bearish as investors fear ‘unfriendly’ IMF-driven budget

After an unprecedented relief rally in post-ceasefire week, the Pakistan Stock Exchange (PSX) came under renewed selling pressure, forcing the index to close the outgoing in the red as jittery investors trimmed their positions amid fears of an unfriendly IMF-driven federal budget. Contrary to the preceding week, when the benchmark KSE 100 index recovered a staggering 12,474 points or 11.64pc thanks to a US-brokered ceasefire between two nuclear-armed neighbors, the PSX faltered due to lacklustre conditions as investors preferred to remain on the sidelines before the announcement of the budget 2025-26. The government has delayed unveiling the federal budget from June 2 to June 10 due to inconclusive discussions with the International Monetary Fund on taxation and fiscal measures. According to the brokerage AKD Securities Ltd, the market remained range-bound during the outgoing week as uncertainty over the upcoming budget moderated investor confidence built on the Pak-India ceasefire and the IMF agreement.