Pakistan stocks down 3% after appeal for IMF bailout

Karachi, Pakistan (Reuters): Pakistan stocks slid by 3% on Monday weighed down by a global selloff and the new government seeking a bailout from the International Monetary Fund (IMF).

The Pakistan Stock Exchange’s benchmark 100-share index lost 1128.93 points and was trading at 36,389.00 by mid-afternoon, down 3.01%.

The KSE has shed 10% since Oct. 1 on worries over dwindling foreign reserves and a currency devaluation in response to a ballooning current account deficit.

Pakistan’s finance ministry said last week Islamabad was approaching the IMF for assistance to help stabilise the economy, amid a deepening balance of payments crisis.

“After close to 10% fall in last two weeks, there are margin calls which is affecting share prices,” said Mohammed Sohail, chief executive of Topline Securities brokerage.

“Also, the global selloff and local economic issues are forcing the investors to trim their positions.