Pakistan stock market crosses record 142,000 points on strong earning hopes, stable rupee
The benchmark KSE-100 index rose by 1,017.66 points, or 0.72 percent, to close at an all-time high of 142,052.64 points, up from the previous close of 141,034.98 points.
Ahsan Mehanti, the CEO of Karachi-based Arif Habib Commodities, said stocks reached the new all-time high amid speculations ahead of major earning announcements due this week.
'Strong financial results, favorable US tariff deal, rupee stability, government's resolve to end power sector circular debt crises and thin inflation data for Jul'25 played catalyst role in bullish close at PSX,' he said.
Pakistan's currency, which last month fell to a 22-month low of Rs284.97 against the US dollar, has lately recovered thanks to an intervention by Pakistani intelligence and investigation agencies, who have been cracking down on dollar smugglers and hoarders. The greenback closed at Rs282.66 as the Pakistani rupee gained 0.02 percent on Monday, according to central bank data.
Pakistan and the US also finalized a trade deal this week, which reduced tariff on Pakistani imports to 19 percent from an earlier announced 29 percent. As part of the agreement, Washington will support the development of Pakistan's oil reserves.
The announcement drove investor optimism and played a key role in fueling the bullish sentiment at the PSX last week.
The Topline Securities brokerage firm said the rally was driven by investor optimism as the Oil & Gas Development Company Limited received a Rs7.7 billion ($27.2 million) TFC payment and cement sector outlook improved on better monthly performance.
'Investor participation remained robust, with a total traded volume reaching 663 million shares and a turnover of Rs42 billion,' it said in its daily market review. 'CNERGY topped the volume chart with 53 million shares exchanged.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
2 hours ago
- Arab News
Pakistan redefines microenterprises to include more firms, drafts policy for women entrepreneurs
ISLAMABAD: Pakistan has lowered the threshold for defining microenterprises to include companies with annual revenues of up to Rs30 million ($106,000) under the national Small and Medium Enterprise (SME) development framework, and has finalized a draft Women's Entrepreneurship Policy, the Prime Minister's Office said on Tuesday. The measures are part of a broader push by the government to revive the economy by expanding private-sector innovation and participation following years of economic distress. Pakistan's financial outlook began improving after securing several International Monetary Fund (IMF) loans and introducing structural reforms that stabilized macroeconomic indicators. Prime Minister Shehbaz Sharif chaired a review meeting of the Small and Medium Enterprises Development Authority's (SMEDA) steering committee to evaluate the performance of the SME sector. Officials briefed him on reforms aimed at enhancing the authority's institutional capacity and outreach. 'Companies with annual business up to Rs30 million have been classified as microenterprises and brought under SMEDA's scope on the instructions of the Prime Minister,' the statement said. 'The draft of the Women Entrepreneurship Policy has also been prepared and will soon be submitted to the federal cabinet for approval.' Other initiatives discussed during the meeting included the upcoming launch of a digital portal for women entrepreneurs and outsourcing of work related to SMEDA's credit scoring model, SME subcontracting legal framework and export enhancement strategy. SMEDA is also conducting a survey of 20 economic sectors in collaboration with the Pakistan Bureau of Statistics, the statement said. "Small and medium-sized enterprises hold a vital place in the country's development and economy," the prime minister said while addressing the gathering. "The government is working on a priority basis to promote small and medium-sized businesses," he added.
Arab News
2 hours ago
- Arab News
Pakistan stocks hit all-time high on 9-year low deficit, macro stability hopes
ISLAMABAD: The Pakistan Stock Exchange (PSX) soared to another all-time high as it surpassed the 143,000-point mark on Tuesday, with analysts linking the bullish trend to the country's 9-year low fiscal deficit and optimism about macroeconomic stability. The benchmark KSE-100 index jumped 984.52 points, or 0.69 percent, to close at 143,037.16 points, compared to the previous day's close of 142,052.64 points. The development came as Pakistan recorded a 5.38 percent deficit — its lowest in nine years — in fiscal year 2024-25 that ended in June, beating the government and the International Monetary Fund (IMF) estimates. The major contributors to the rally were Fauji Fertilizer Company (FFC), United Bank Limited (UBL), MCB Bank Limited (MCB), Hub Power Company (HUBC), and Engro Fertilizers Limited (EFERT), collectively adding 679 points. "Sentiment further strengthened as Pakistan reported a 9-year low fiscal deficit of 5.38 percent in FY25, with 36 percent YoY (year-on-year) revenue growth outpacing an 18 percent rise in expenditures," the Karachi-based Topline Securities firm said in its market review. "Investor confidence was fueled by local and foreign inflows and gains across many sectors of the market," it said. "The market's upward trajectory reflects optimism over fiscal discipline, macroeconomic stability and a stronger earnings outlook, setting the stage for sustained momentum in the sessions ahead." Overall, the PSX recorded a trading volume of 548 million shares, with a turnover of Rs37 billion. Ahsan Mehanti, the CEO of Arif Habib Commodities, attributed the rally to the government's fiscal policies. "Government approval to resume subsidies for fully funded remittances scheme to ensure rupee stability, surging global equities, speculations over government resolve to end power sector circular debt crisis played a catalyst role in the bullish close," he told Arab News. The development comes amid a broader macroeconomic turnaround for Pakistan, which is currently in its first year of a $7 billion IMF loan program approved in September 2024 to stabilize the economy, increase revenues and curb inflation after a prolonged balance of payments crisis. According to Topline Securities, non-tax revenues have surged 66% year-on-year, led by a robust dividend of Rs2.62 trillion from the central bank, the State Bank of Pakistan, up from Rs0.97 trillion in FY24. Meanwhile, tax revenues grew 26%, driven primarily by gains in collections by the Federal Board of Revenue (FBR). 'In the last 5 years, FBR revenues (including Petroleum Development Levy) have increased 3.02x from Rs4.3 trillion in FY20 to Rs12.9 trillion in FY25,' the report noted, adding that over the same period, GDP rose from Rs41 trillion to Rs114.6 trillion. The FBR's tax-to-GDP ratio rose to 11.3% in FY25, a seven-year high compared to 9.7% last year. 'This is higher than the average of 9.9% recorded between FY20 to FY24,' the brokerage said, noting that higher Petroleum Development Levy collections may have substituted for sales tax to avoid revenue-sharing obligations with provinces. Pakistan also recorded a primary surplus of 2.4% of GDP in FY25 – the highest in more than two decades – as revenue growth outpaced expenditures. This exceeded both the government's revised projection of 2.2% and the IMF's forecast of 2.1%. 'Higher primary surplus is achieved as revenue growth surpassed the expenditures growth,' Topline Securities said. Interest expenses as a percentage of FBR taxes declined to 76% in FY25 from 88% in FY24, reflecting better debt management. 'The improvement in debt servicing is on the back of controlled growth — 9% in interest expenses — due to lower interest rates,' the report said. Development spending also rose, with the Public Sector Development Program (PSDP) reaching 2.6% of GDP, its highest in five years, though still well below the 5% peak recorded in FY2017. Looking ahead, Topline Securities said, it expected the government to continue on a path of fiscal consolidation. 'Pakistan is expected to post [a] third consecutive year of primary surplus in FY26 after two decades,' it said. 'While overall fiscal deficit is expected to clock in at 4.0–4.1% of GDP in FY26, [the] lowest in two decades.' The improved fiscal performance is likely to strengthen Islamabad's case in ongoing negotiations with the IMF and other international creditors as it seeks long-term debt sustainability and economic recovery.
Arab News
4 hours ago
- Arab News
Pakistan's Gwadar port, Chinese company ink agreement for industrial, commercial agreements
KARACHI: Chinese company Xinning Enterprise and the Gwadar Port Authority (GPA) have signed an agreement to stimulate industrial and commercial investments at the port and its free zone, Pakistan's maritime affairs ministry said on Tuesday. Gwadar city is situated along the Arabian Sea and lies at the heart of the China-Pakistan Economic Corridor (CPEC), under which Beijing has funneled tens of billions of dollars into massive transport, energy and infrastructure projects in Pakistan. Pakistani officials have said Gwadar's geostrategic position as the shortest trade route to the Gulf and Central Asia highlights its port's potential to become a regional transshipment hub. 'China's Xinning Enterprise has signed a Letter of Intent (LoI) with Gwadar Port Authority (GPA) to stimulate major industrial and commercial investments at Gwadar Port and its Free Zone, underscoring Gwadar's growing role as a key regional hub for trade and economic activity,' the statement said. The statement said these ventures include developing Gwadar port as a regional transshipment center, launching new industrial projects, optimizing existing facilities within the Gwadar Free Zone and relocating industries. Pakistan's Maritime Affairs Minister lauded the partnership as a 'significant milestone' in strengthening Gwadar's strategic importance. 'He highlighted Xinning Enterprise's potential to boost the port's throughput, attract foreign investment, and contribute to the broader economic development of the region,' the statement said. Chaudhry reaffirmed the government's commitment to transforming Gwadar into a global maritime gateway and industrial powerhouse, the ministry added. He stressed that collaborations with reputable international enterprises will accelerate Pakistan's maritime and economic ambitions. As cash-strapped Pakistan recovers from a macroeconomic crisis with the help of a $7 billion International Monetary Fund deal, Islamabad has been looking to capitalize on its geostrategic location to boost transit trade and foreign investment for a sustainable economic recovery. Prime Minister Shehbaz Sharif's government has eyed increased trade and investment deals with regional allies such as the Gulf countries and Central Asian Republics since Pakistan came close to defaulting on its debt in 2023.
