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Business Recorder
20-06-2025
- Business
- Business Recorder
Another downbeat trading day
KARACHI: The Pakistan Stock Exchange (PSX) experienced another downbeat trading day on Thursday, with most key indices registering declines despite some individual company gains. The benchmark KSE100 index dropped by 463.34 points or 0.38 percent to end the day at 120,002.59, down from its previous closing of 120,465.93. Throughout the day, the KSE 100 reached a high of 121,745.30 and a low of 119,770.03. On Thursday, the BRIndex100 closed at 12,923.04, marking a decrease of 54.42 points or 0.42 percent. The total trading volume for the BRIndex100 was 404.54 million. Meanwhile, the BRIndex30 ended the day at 36,973.62, reflecting a loss of 282.25 points or 0.76 percent, with a total volume of 269.32 million. Ismail Iqbal Securities in its report cited that local bourse cited another volatile session with persistent geopolitical tensions and fluctuating international oil prices, weighed on investor sentiments and kept the broader market under pressure. Total turnover in the regular market was recorded at 604.54 million shares, a decrease from the previous day's 707.30 million shares. The traded value in the regular market also saw a dip, from Rs 21.27 billion to Rs 20.44 billion. Moreover, the regular market's total market capitalization closed at over Rs 14.52 trillion, a decrease of Rs 87 billion from the previous day's Rs 14.61 trillion. In the ready market, 155 companies saw their share prices increase, while 269 declined, and 35 remained unchanged out of 459 companies traded. WorldCall Telecom again led the ready market in turnover with 64.60 million shares traded, closing at Rs 1.49. Sui Southern Gas followed with 35.63 million shares, closing at Rs 43.28. While, Prud Mod.1st remained the third in row with 30.29 million shares and its closing rate was Rs 4.31. In the ready market, Unilever Pakistan Foods Limited saw the most significant increase, rising by Rs 140.64 to close at Rs 23,129.64. Macter International Limited also saw a notable increase of Rs 51.39, closing at Rs 565.29. Conversely, PIA Holding Company LimitedB experienced the largest decrease, falling by Rs 1,377.01 to close at Rs 12,393.14. Hoechst Pakistan Limited also saw a substantial decline of Rs 99.24, closing at Rs 3,150.76. Sectoral indices at the close of trading showed mixed performance. The BR Automobile Assembler Index concluded at 20,279.67 points, experiencing a 0.92 percent or 188.49 points decline with a total turnover of 2.36 million. The BR Cement Index closed at 10,130.46 points, down 1.09 percent or 111.26 points, and recorded a total turnover of 29.30 million. In contrast, the BR Commercial Banks Index ended positively at 36,654.95 points, gaining 142.13 points or 0.39 percent, with a total turnover of 30.95 million. Meanwhile, the BR Power Generation and Distribution Index finished at 20,504.67 points, decreasing by 341.97 points or 1.64 percent on a total turnover of 25.59 million. The BR Oil and Gas Index closed at 11,514.03, down 0.32 percent or 36.89 points, with 53.90 million in total turnover. Finally, the BR Technology & Communication Index with 92.49 million turnover ended at 2,849.61 points, or 0.51 percent decrease. Topline Securities, in its commentary said that the local bourse kicked off the trading session on a strong footing on Thursday, buoyed by news that the federal cabinet has green lit a financial restructuring plan aimed at slashing Rs1.275 trillion in circular debt within the power sector over the next six years. Riding on this optimism, the benchmark index surged to an intraday high of 1,279 points. However, the bullish momentum was short-lived, as profit-taking set in later in the session, in line with global market trends. Moreover, the rising geopolitical tensions particularly the intensifying standoff between Iran and Israel dampened investor sentiment and led to a broad-based pullback, overshadowing the earlier euphoria and highlighting the fragility of market confidence in a volatile global environment. Copyright Business Recorder, 2025
Express Tribune
16-06-2025
- Business
- Express Tribune
Rupee loses 21 paisa on imports, global woes
The Pakistani rupee on Monday lost 21 paisa, or 0.07%, reaching its lowest level in 18 months against the US dollar amid rising import demand and evolving geopolitical factors. By the end of trading, the rupee stood at 283.17/$, down 21 paisa compared to the previous day. This marks the first time the currency has touched the 283 level since December 2023. The rupee remains under pressure due to increased import payments and ongoing debt repayments. Over the past week, the currency lost 0.28%, or 79 paisa, settling at 282.96 against the dollar, compared to the prior week's close at 282.17, as per data from the State Bank of Pakistan (SBP). The rupee has depreciated by 1.63% so far in the current calendar year and by 1.71% in the current fiscal year, according to Ismail Iqbal Securities. Exchange Companies Association of Pakistan General Secretary Zafar Paracha said the rupee has remained relatively stable compared to past crises, despite recent geopolitical tensions. He noted that unlike previous situations when the dollar surged sharply, the market has been managed better this time around. However, ongoing tensions and uncertainty have led to a slight depreciation of the rupee and rise in gold prices. Paracha also highlighted reduced remittances and increased capital outflows during recent India-Pakistan tensions, with some investors turning to alternatives like cryptocurrencies. Gold prices in Pakistan fell on Monday, mirroring the decline in the international market where bullion slipped over 1% as investors booked profits following an eight-week high. Market participants also remained cautious due to escalating Israel-Iran tensions and the upcoming US Federal Reserve policy meeting. In the domestic market, the price of gold per tola dipped Rs700 to settle at Rs362,300. Likewise, the price of 10 grams of gold decreased Rs600 to Rs310,613, according to the All Pakistan Sarafa Gems and Jewellers Association.
Express Tribune
31-05-2025
- Business
- Express Tribune
SBP injects Rs1.15tr to stabilise markets
Listen to article The State Bank of Pakistan (SBP) conducted a major liquidity injection on Friday, deploying a total of Rs1.148 trillion into the banking system through a mix of conventional and Shariah-compliant open market operations (OMOs). Under the conventional reverse repo facility, SBP injected Rs970 billion, including Rs250 billion for a 6-day tenor at 11.10% and Rs720 billion (partially accepted) for a 14-day tenor at 11.08%. Simultaneously, the Shariah-compliant Mudarabah OMO contributed Rs178 billion, split almost evenly between 6-day and 14-day tenors, both priced at 11.10%. This Rs1.15 trillion operation is among the largest single-day liquidity injections this year, signalling the SBP's proactive approach to maintaining stability in the interbank market amid tight liquidity conditions. Meanwhile, the Pakistani rupee posted a marginal gain against the US dollar in the interbank market, appreciating by 0.02% on Friday. By the end of the trading session, the local currency closed at 282.02, up by five paisas from Thursday's closing rate of 282.07. According to Ismail Iqbal Securities, the rupee has depreciated by 1.23% on a calendar year-to-date (CYTD) basis and by 1.30% on a fiscal year-to-date (FYTD) basis. On the commodities front, gold prices in Pakistan declined on Friday, reflecting losses in the international market. The fall came as the US dollar gained strength and investors responded to recent tariff announcements. However, a softer US inflation report sustained hopes of a possible interest rate cut. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold dropped by Rs700 per tola, settling at Rs348,600, while the rate for 10 grams decreased by Rs599 to Rs298,868. Adnan Agar, Director at Interactive Commodities, said the market remains range-bound. "Gold hit a high of $3,322 and is trading around $3,290, with strong support at $3,260," he noted, adding that, "Unless the price breaks above $3,340$3,350, downward pressure is likely to continue."
Business Recorder
27-05-2025
- Business
- Business Recorder
KSE-100 Index ends flat with over 100 points gain
The Pakistan Stock Exchange (PSX) closed relatively flat as investors remained cautious ahead of the FY26 budget, with the benchmark KSE-100 Index settling with a gain of over 100 points on Tuesday. At close, the benchmark index settled at 118,332.90, an increase of 111.78 points or 0.09%. 'A wait-and-see approach dominated sentiment, with participants largely staying on the sidelines in the absence of clear market moving triggers,' said Ismail Iqbal Securities. On Monday, the KSE-100 index fell sharply as investors reacted to the postponed budget and uncertainty over the IMF's approval of the circular debt plan. The benchmark index dropped by 881.55 points, or 0.74%, settling at 118,221 points. Internationally, the Asian shares eased on Tuesday, though US futures rose after President Donald Trump delayed his threatened 50% duties on European Union shipments, while the US dollar was headed for a fifth straight monthly loss. In Japan, yields on super-long government bonds fell early in the session, retreating from their all-time highs in the wake of last week's heavy selloff in the bonds. Markets in the US were closed on Monday for a holiday, making for thin overnight trading conditions and leaving investors latching on to lingering optimism from Trump's U-turn on his threat to impose 50% tariffs on imports from the EU next month, restoring a July 9 deadline. Nasdaq futures were up 1.26% in Asia while S&P 500 futures similarly rose 1.11%. FTSE futures advanced 0.94%. UK markets were also closed on Monday. Results from Nvidia are due on Wednesday, where the AI darling is expected to report a 65.9% jump in first-quarter revenue. Elsewhere, MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.17%, while Japan's Nikkei similarly fell 0.15%. China's CSI300 blue-chip index edged 0.06% lower while the Shanghai Composite Index was little changed. Hong Kong's Hang Seng Index dipped 0.1%. Focus for investors this week will also be on speeches from a slew of Federal Reserve policymakers and Friday's US core PCE price index, for clues on the outlook for US rates.
Express Tribune
26-05-2025
- Business
- Express Tribune
OPEC+ oil output rise may aid Pakistan
While the Omicron coronavirus variant is rapidly taking hold, demand-side concerns are easing amid rising evidence that it is less severe than previous variants.. PHOTO: REUTERS OPEC Plus' anticipated decision to raise oil production by 411,000 barrels per day starting in July could provide Pakistan with much-needed macroeconomic relief, carrying significant implications for the country's external account, inflation trajectory, and energy sector stability. Sources close to the group indicate that this larger-than-expected output hike may be part of a broader strategy to restore as much as 2.2 million barrels per day to the market by November 2025. According to Ismail Iqbal Securities, the move is widely seen as an attemptled particularly by Saudi Arabiato regain lost market share and pressure high-cost producers out of the market. The oil producers are expected to approve a hike more than three times the previously agreed 137,000 bpd at their upcoming meeting on June 1. If implemented, the decision is likely to exert downward pressure on already-struggling global crude oil prices. This would benefit oil-importing economies such as Pakistan, which continues to grapple with elevated energy costs and persistent trade and fiscal deficits. Pakistan imports around 21 million tonnes of crude and petroleum products annually. In the first ten months of FY25, its energy import bill surged to $12.7 billionnearly 26% of the total import bill. With Brent crude averaging around $74 per barrel so far this fiscal year, a drop in global prices following the OPEC+ hike could provide meaningful financial relief. Insight Securities estimates that if Brent oil falls to $65 per barrel, Pakistan could save up to $1.8 billion on crude imports, with an additional $500 million in savings on RLNG imports. Pakistan imported $2.9 billion worth of RLNG during the same period, and because its price is indexed to global crude benchmarks, any decline in oil prices translates directly into reduced RLNG costs. These savings would ease pressure on Pakistan's current account, improve foreign exchange reserves, and reduce the need for immediate external financing. Lower oil prices would also aid Pakistan's fiscal goals. The government recently increased the petroleum development levy (PDL) by Rs18/litre to finance tariff differential subsidies under the TDS scheme. With a PDL target of Rs100/litre and a projected 10% increase in fuel consumption, authorities could generate up to Rs2 trillion in FY26without raising retail prices if global oil prices fall. In the domestic energy sector, a reduction in RLNG prices could lower electricity generation costs and reduce circular debt. This would alleviate financial strain on power utilities and cut the burden of energy subsidies. Gas distributors such as SNGP and SSGC could also benefit from improved cost recovery and liquidity, enabling timely payments to companies like OGDC and PPL. Additionally, a decline below the $75/bbl base case assumed by OGRA could result in full cost recovery for gas utilities, enhancing their profitability. The anticipated price drop could boost investor sentiment, particularly in the power, chemicals, and textile sectors, supporting the KSE-100 index. However, risks remain from potential new taxes in the upcoming budget and political resistance to high petroleum levies.
