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Express Tribune
2 days ago
- Business
- Express Tribune
Rupee continues uptrend with appreciation of 24 paisa
The Pakistani rupee appreciated against the US dollar on Monday, gaining 0.08% in the inter-bank market. At close, the rupee settled at 283.21, an increase of 24 paisa. The fresh gain reflects a recent trend of strength, with the local unit rising 0.50% against the greenback last week, its strongest weekly performance in 93 weeks, according to a report of AKD Securities. The rupee had closed the previous week at 283.45 against 284.87 a week earlier. Amid this positive momentum, the Pakistan Business Forum (PBF) has raised concerns over what it calls an artificially controlled exchange rate. It claims the real value of the dollar should be around Rs260 based on current macroeconomic indicators. Gold prices in Pakistan declined on Monday, mirroring a downward trend in the international market as investor appetite for safe-haven assets weakened following a breakthrough in US-European Union trade negotiations. The price of gold per tola in the local market fell Rs100 to settle at Rs356,300, according to the All Pakistan Sarafa Gems and Jewellers Association (APGJSA). Similarly, the rate for 10 grams of gold declined Rs85 to Rs305,470. The local market tracked a near three-week low in international bullion prices as the dollar strengthened and market sentiment improved after reports emerged of a trade accord between Washington and Brussels. Although the deal has not yet been officially signed, its confirmation has been enough to boost risk appetite and reduce the demand for gold as a traditional safe-haven asset. Interactive Commodities Director Adnan Agar noted that gold prices eased due to shifting global dynamics. "Gold touched a low of $3,301, with the high at $3,345. It was later trading around $3,309," he said. "The tentative agreement between the US and EU has softened gold's appeal. Now, all eyes are on key US economic indicators due later this week." Investors are closely watching for two major releases from the United States – the Federal Reserve's monetary policy decision expected on Wednesday night and the monthly employment report scheduled for Friday. "These two data points will heavily influence market sentiment and gold's trajectory in the days ahead," Agar added. The decline comes after Saturday's trading saw a drop in domestic gold rates, when the per-tola price fell Rs300 to Rs356,400. Analysts say that unless new geopolitical risks emerge or economic data disappoints, gold may remain under pressure in the short term.
Express Tribune
23-07-2025
- Business
- Express Tribune
RDA inflows rise to $10.56b; rupee stable
Listen to article Foreign investors repatriated profits worth $2.22 billion in FY25, mirroring the amount recorded in FY24. The power sector led all categories with outflows totalling $399 million, marking a 1.6-time increase from the previous fiscal year, according to data compiled by AKD Securities. The financial sector followed with repatriation of $385 million, though it represented a 40% decline from FY24. The food sector also posted a notable outflow of $306 million, up two times year-on-year. AKD report attributes the high FY24 figure largely to a backlog from FY23, when repatriations had dropped significantly to $331 million. The 20-year average now stands at $1.4 billion, indicating a strong recovery in the past two years. June 2025 saw a sharp 72% year-on-year (YoY) drop in monthly repatriation, totalling $114 million compared to $414 million in June 2024. Sector-wise, communications, financial services and transport witnessed significant YoY declines, while personal services and oil & gas exploration saw increases. On the other hand, the inflow of remittances under the Roshan Digital Account (RDA) rose to $10.563 billion by the end of June 2025 as compared to $10.381 billion by May-end, according to APP. The arrival of remittances during May was recorded at $182 million as compared to $201 million in May 2024 and $177 million in April 2025, according to the latest data released by the State Bank of Pakistan (SBP). The number of accounts registered under the programme rose 8,739 to 831,963 in June 2025 from 823,224 accounts in May 2025. By the end of June, overseas Pakistanis invested $466 million in the Naya Pakistan Certificates, $926 million in the Naya Pakistan Islamic Certificates and $70 million in Roshan Equity Investment. Furthermore, the Pakistani rupee held steady against the US dollar on Tuesday, recording a marginal depreciation of 0.01% in the inter-bank market. By the end of trading, the rupee closed at 284.97, slipping just two paisa compared to Monday's close at 284.95. Meanwhile, gold prices in Pakistan remained unchanged, despite a rally in the international market, where the precious metal climbed to a five-week high amid growing global uncertainty. According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold per tola stood firm at Rs361,200, while the rate for 10 grams also held steady at Rs309,671. This stability follows a sharp increase on Monday, when the price per tola rose Rs3,600. Internationally, gold gained momentum as concerns over trade tensions and weak US bond yields lifted safe-haven demand. Investors continue to monitor the August 1 tariff deadline set by US President Donald Trump, alongside developments surrounding the Federal Reserve's interest rate outlook. Spot gold rose 0.6% to $3,415.61 per ounce by 1414 GMT, hitting its highest since June 16, according to Reuters. US gold futures were up 0.6% at $3,428.10. The yield on benchmark US 10-year notes fell to a near two-week low, making non-yielding bullion more attractive. Interactive Commodities Director Adnan Agar noted that gold remained on an upward trend globally, with the market touching a high of $3,430 per ounce. "The market is hot right now," he said, citing geopolitical uncertainty, Trump's repeated tariff threats and speculation surrounding a potential US interest rate cut in September. "There's a strong chance gold could test the $3,450-55 range before correcting down to $3,400 or even $3,380," Agar added. With multiple geopolitical triggers on the horizon, including potential tariffs on Europe and continued pressure on the Fed, global gold prices are expected to remain volatile in the days ahead.
Express Tribune
01-07-2025
- Business
- Express Tribune
PSX tops Asian markets with 60% return
Listen to article Pakistan's equity market closed FY25 as the top-performing market in Asia, delivering a 60% return and significantly outperforming all major regional peers. This strong performance was driven by macroeconomic stability, structural reforms, and improved investor sentiment, despite global and domestic challenges. Analysts from JS Global and AKD Securities cited a robust recovery in confidence, high trading activity, and strong sectoral performance as key drivers. Waqas Ghani Kukaswadia, Head of Research at JS Global, said the rally reflected a turnaround in investor sentiment due to better economic indicators and policy continuity. According to data from JS Global, Pakistan Stock Exchange (PSX), and Bloomberg, Pakistan's performance outshone China (16%), Vietnam and Korea (10% each), and India (6%), while the Philippines, Indonesia, Taiwan, Malaysia, and Thailand posted negative returns. Thailand declined the most, by 16%. Despite the rally, Pakistan's equity market remains undervalued. It trades at a price-to-earnings (P/E) multiple of just 6.3 times, far below regional averages. India trades at 23.1 times, Taiwan at 16.5, Malaysia at 14.1, and China at 13.4. The Philippines and Indonesia also trade at higher multiples — 10.2 and 10.9, respectively. Analysts believe this valuation gap highlights strong upside potential, particularly for long-term investors seeking undervalued emerging market exposure. Muhammad Awais Ashraf of AKD Securities credited the KSE-100 Index's momentum to aggressive monetary easing, tight fiscal policy, and a strong external account. These factors made equities the top asset class for a second straight year. The KSE-100 rose by 60.1% in local currency and 57.1% in USD terms, driven largely by capital appreciation. The rupee depreciated by 1.9% in FY25, after appreciating 2.7% in FY24. Rising import demand and limited external financing impacted the currency, despite a current account surplus. Investor participation surged in FY25. Trading volumes rose 43.6% year-on-year to a record 823 million shares. The value traded jumped 82.6% to Rs38.1 billion. The rally was broad-based, led by the Main Board. The Pharmaceutical sector posted the highest return of 99%, followed by Cement (93%), Oil Marketing Companies (88%), and Fertilisers (78%). Banks contributed the most to index gains with 15,160 points, followed by Fertilisers (8,292 points), E&Ps (6,845), and Cement (5,596). The only sector to negatively impact the index was Automobile Parts & Accessories, which pulled it down by 90 points. However, FY25 also brought challenges. Pakistan's reclassification by FTSE to Frontier Market status in September 2024 led to foreign outflows. Foreign investors sold $304.3 million worth of equities, ending a two-year buying streak. The banking sector saw the largest outflow of $108.7 million, followed by fertilisers ($66.9 million), E&Ps ($65.8 million), food ($42.3 million), and power ($21.3 million). In contrast, the technology sector saw net inflows of $21.8 million, with cement, textiles, and OMCs also attracting some inflows. Domestically, mutual funds became net buyers for the first time in three years, purchasing $232.9 million in equities. Companies and individual investors were also active, buying $94.5 million and $68 million, respectively. NBFCs and smaller institutions made marginal purchases. However, banks, insurance firms, and brokers reduced their equity exposure by $55.1 million, $21.2 million, and $17.6 million, respectively. Looking ahead, analysts remain optimistic about the PSX. Kukaswadia said the re-rating story is intact, supported by macro stability, lower interest rates, and improving sentiment. Ashraf added that continued monetary easing, structural reforms, and fiscal discipline will keep equities in focus. Falling fixed-income yields make equities even more attractive. Pakistan's forward P/E stands at just 5.6 times. Ashraf highlighted sectors like energy, banking, and fertilisers as key beneficiaries. AKD's top stock picks for FY26 include OGDC, PPL, MCB, MEBL, HBL, FFC, ENGROH, PSO, FCCL, INDU, ILP, and SYS.
Hans India
09-05-2025
- Business
- Hans India
Pakistan stock index nosedives by over 6%
Karachi: The Pakistan Stock Exchange plunged by over 6 per cent on Thursday with trading halted for an hour after rumours of escalation in military action by India near Karachi. Although the rumours were unfounded, the benchmark KSE100 index tumbled 6,948.73 points, or 6.32 per cent, to 1,03,060.30, before the trading was halted. Trading resumed with Fatima Bucha of AKD Securities confirming the situation on the floor had calmed down a bit. 'But the situation could get worse as investors are panicking due to the geopolitical situation,' she said. 'No one is sure what is going to happen and how and if Pakistan will respond to India's aggression.' The downward trajectory of the index was largely driven by negative contributions from key stocks such as cement, energy, bank, and technology, which collectively dragged the index down. Meanwhile the government has taken measures to keep its foreign exchange reserves stabilised. It has imposed a 60-day ban on importing and exporting precious metals, jewellery, and gemstones from Thursday. The temporary ban was imposed by a Commerce Ministry Order suspending SRO760 of 2013, which governs the trade of precious metals.
Hans India
08-05-2025
- Business
- Hans India
Bloodbath on Pak bourse
Karachi: The Pakistan Stock Exchange (PSX) lost 6,500 points on Wednesday amid an escalation of military confrontation between India and Pakistan in the wake of the Pahalgam terror attack. The market saw investors in panic mode in intra-day trade as the benchmark KSE-100 index decreased by 6,560.82 points, or 5.78 per cent, to stand at 107,007.68 from the last close of 113,568.50 when the market opened this morning. Due to the massive dip, the market was immediately suspended briefly. This is the second-largest intraday tumble (points-wise), second to the 8,700 points loss that happened in the US last month after President Donald Trump's trade tariff announcements. Fatima Bucha of AKD Securities said the market showed signs of recovery after 11 am, reaching 112,457.37 points, before declining to 111,171.92 points at 12 pm. 'This was expected in the market for days because of the fears about military strikes by India,' she said. 'The market opened under pressure this morning and some selling has been observed, though volumes remain low as investors assess the evolving situation,' she said.
