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Express Tribune
a day ago
- Business
- Express Tribune
PSX rises modestly but couldn't hold 140k level
The Pakistan Stock Exchange (PSX) closed modestly higher on Monday as the benchmark KSE-100 index rose 173 points to close at 139,380. Investor sentiment was buoyed by optimism ahead of the State Bank of Pakistan's (SBP) monetary policy announcement and the credit rating upgrade, bringing Pakistan's rating to 'B-' with a stable outlook. Despite briefly crossing 140,000 during early trade, led by cement, technology and fertiliser stocks, profit-taking in banking-sector blue chips pulled the index below the threshold by the close of the session. According to Ahsan Mehanti of Arif Habib Corp, stocks closed higher amid speculation ahead of the SBP policy announcement on July 30. Pakistan's sovereign bonds surged after S&P Global lifted its credit rating to 'B-'. Additionally, a strong earnings outlook and surging global crude oil prices drove the positive close at the PSX, Mehanti said. At the end of trading, the benchmark KSE-100 index recorded an increase of 172.77 points, or 0.12%, and settled at 139,380.06. In its review, Topline Securities noted that the market remained range bound throughout the session, fluctuating between the intra-day high of 140,149 and intra-day low of 139,196. The banking sector faced pressure amid expectations of policy rate cut, while the cement sector saw positive momentum following approval of a housing finance subsidy scheme by the Economic Coordination Committee, it said. Top contributors to the index included Lucky Cement, Systems Limited, Pakistan State Oil, Fatima Fertiliser and Sazgar Engineering Works, which collectively added 379 points. On the other hand, UBL, Meezan Bank and Bank Alfalah were the major laggards, dragging the index down by 261 points, Topline added. Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib remarked that the PSX again attempted to pass the 140,000 mark but in vain as the KSE-100 index ended the day at 139,380 points. He pointed out that the session resumed on a buoyant note and the index touched intra-day high of 140,149 (up 942 points) in early hours. However, the buying spree proved short-lived as the market succumbed to selling headwinds and ultimately lost the 140,000 level to profit-taking. Over the weekend, Foreign Minister Ishaq Dar stated that Pakistan and the US were "very close" to finalising a trade deal, possibly within days. However, the US side, following Dar's meeting with Secretary of State Marco Rubio, did not confirm any timeline. If the deal is finalised, it could boost exports, attract investment and improve market sentiment. It may also strengthen the rupee, though delay could dampen immediate economic impact, Najib said. The stars of the day were Lucky Cement, Systems Limited, Fatima Fertiliser, Pakistan State Oil and Sazgar Engineering Works, which added 379 points. On the other hand, the index lost 384 points due to some selling in banking sector blue-chip stocks, namely UBL, Meezan Bank, Bank Alfalah, HBL and MCB Bank. "This selling can be attributed to street expectations of a 50-basis-point cut in the upcoming monetary policy meeting," the analyst said. "The outlook is still intact as 137,000 will continue to act as strong support for the KSE-100. If breached, the index may be pushed towards 135k, where attractive valuations and anticipated monetary easing can trigger renewed buying interest," Najib commented. JS Global analyst Mohammad Waqar Iqbal said that the benchmark index ended the day largely flat despite a strong start as it gave up early gains. Market sentiment was influenced by the ongoing corporate earnings season and anticipation surrounding the upcoming monetary policy announcement, he said. Overall trading volumes decreased to 589.3 million shares compared with Friday's tally of 634.8 million. Traded value increased to Rs34.6 billion as compared to Rs24.6 billion in the previous session. Overall, shares of 483 companies were traded. Of these, 251 stocks closed higher, 205 dropped and 27 remained unchanged. Aisha Steel Mills was the volume leader with trading in 51.8 million shares, gaining Rs0.42 to close at Rs12.76. It was followed by Agha Steel Industries with 46.6 million shares, rising Rs0.94 to close at Rs9.92 and The Bank of Punjab with 23.8 million shares, falling Rs0.11 to close at Rs13.49. Foreign investors sold shares worth Rs750.6 million, the National Clearing Company reported.
Arab News
08-07-2025
- Business
- Arab News
Pakistan prequalifies four investors for PIA, greenlights Roosevelt Hotel joint venture deal
KARACHI: Pakistan has prequalified four investors for the sale of Pakistan International Airlines (PIA), while its Cabinet Committee on Privatization (CCOP) has approved the transaction structure for the denationalization of the Roosevelt Hotel in New York under a joint venture, the ministry of privatization said on Tuesday. Pakistan has been seeking to sell a 51-100 percent stake in the struggling national airline to raise funds and reform cash-draining, state-owned enterprises as envisaged under a $7 billion International Monetary Fund program. It would be the country's first major privatization in nearly two decades. Among the bidding groups, one is a consortium of major industrial firms Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures. Another is led by investment firm Arif Habib Corp. and includes fertilizer producer Fatima Fertilizer, private education operator The City School, and real estate firm Lake City Holdings. Additionally, Fauji Fertilizer Company, a military-backed conglomerate, and Pakistani airline Airblue, have been approved to bid for PIA. 'The prequalified parties will now proceed to the buy-side due diligence phase — a critical next step in the transparent and competitive privatization process of PIACL,' the privatization commission's statement said. PIA, once a respected carrier in Asia, has been propped up by taxpayers for decades due to political interference, corruption and inefficiencies. The airline's privatization has repeatedly collapsed amid union resistance, legal hurdles and low investor appetite. Pakistani state-owned enterprises post annual losses of more than Rs800 billion ($2.87 billion), and when subsidies, grants and other support are included, the burden swells beyond Rs1 trillion ($3.59 billion), Finance Minister Muhammad Aurangzeb told parliament while presenting the budget for fiscal year 2025–26 earlier this month. PIA has been one of the government's most costly liabilities, which has accumulated over $2.5 billion in losses in roughly a decade and been surviving on repeated bailouts that have weighed heavily on Pakistan's strained budget. Last month, five consortiums submitted expressions of interest for a 51–100 percent stake in PIA after the government restructured its balance sheet to make the deal more attractive. It also scrapped the sales tax on leased aircraft and is providing limited protection from legal and tax claims. Around 80 percent of the airline's debt has been transferred to the state. ROOSEVELT HOTEL Separately, the CCOP approved the transaction structure for Roosevelt Hotel under a 'Joint Venture model with multiple options.' 'This option is aimed at maximizing long-term value for the country, while ensuring flexibility, multiple exit opportunities, and minimizing future fiscal exposure,' the privatization commission said. How much money the hotel ultimately brings in, and its overall valuation, depends on the type of transaction structure adopted, Privatization Commission Chairman Muhammad Ali told Arab News in an interview last month. If the government formed a joint venture with a private investor, sharing both the risks and future profits, the hotel could be worth four to five times more than its as-is valuation, he said at the time. 'So, depending on what sort of structure you have, how much risk you take, how much effort the government puts in, we can make a lot of money from this asset,' the privatization chief had said. The Roosevelt, a 1,015-room historic hotel in Midtown Manhattan, has long been one of Pakistan's most prominent but politically sensitive overseas assets. Acquired by Pakistan International Airlines Investment Limited (PIAIL) in 1979, the hotel occupies a full city block on Madison Avenue and 45th Street. Over the past two decades, successive Pakistani governments have floated plans to sell, lease, or redevelop the property, but no proposal has advanced beyond early-stage planning. Operations at the Roosevelt were suspended in 2020 following steep financial losses during the COVID-19 pandemic. In 2023, Pakistan entered a short-term lease with the City of New York to use the property as a temporary shelter for asylum seekers, generating more than $220 million in projected rental income. That agreement ended in 2024 and no new revenue stream has since been announced. The Roosevelt Hotel is one of several state assets the government hopes will contribute to its target of raising Rs86 billion ($306 million) in privatization proceeds during the fiscal year starting July 1, alongside the sale of PIA and three electricity distribution companies.
CNA
08-07-2025
- Business
- CNA
Pakistan approves four potential bidders for struggling national airline PIA
The Pakistani government said on Tuesday it had approved four parties, including business groups and a military-backed firm, to potentially bid for a stake in debt-ridden Pakistan International Airlines. Pakistan has been seeking to sell a 51-100 per cent stake in the struggling national airline to raise funds and reform cash-draining, state-owned enterprises as envisaged under a $7 billion International Monetary Fund programme. It would be the country's first major privatisation in nearly two decades. Among the bidding groups, one is a consortium of major industrial firms Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures. Another is led by investment firm Arif Habib Corp, and includes fertiliser producer Fatima Fertilizer, private education operator The City School, and real estate firm Lake City Holdings. Additionally, Fauji Fertilizer Company, a military-backed conglomerate, and Pakistani airline Airblue, have been approved to bid for PIA. "The pre-qualified parties will now proceed to the buy-side due diligence phase," Pakistan's Privatisation Minister Muhammad Ali said in a statement. The review process is set to last two to two-and-a-half months, with final bidding and negotiations anticipated in the fourth quarter of 2025, Ali previously told Reuters. The country's privatisation ministry also said that the Cabinet Committee on Privatisation approved the transaction structure for the Roosevelt Hotel located in New York, including options for both outright sale and long-term lease. From the Roosevelt Hotel, Pakistan is expecting over $100 million as a first payment during this year, Ali previously told Reuters.
Express Tribune
28-06-2025
- Business
- Express Tribune
PSX climbs to historic high at 124k
Shares of 333 companies were traded. At the end of the day, 135 stocks closed higher. PHOTO: FILE Listen to article Pakistan Stock Exchange (PSX) closed at another all-time high on Friday, with the benchmark KSE-100 index surging over 2,300 points, or 1.91%, and closing just shy of 124,400, marking a weekly gain of 3.6%. The rally was fueled by aggressive institutional buying ahead of FY26 portfolio allocations, strong foreign inflows and improved investor sentiment. Key gainers included Fauji Fertiliser Company (FFC), Lucky Cement and Meezan Bank, while Pakistan Services, National Foods and International Steels weighed on the index. Fresh hydrocarbon discoveries by Pakistan Oilfields and MOL in Khyber-Pakhtunkhwa lifted energy sector confidence. On the diplomatic front, Prime Minister Shehbaz Sharif and US Secretary of State Marco Rubio reaffirmed their commitment to deepening trade ties. Meanwhile, Pakistan secured $3.1 billion in commercial loans and over $500 million in multilateral funding, expected to be reflected in reserves late Friday. Trading volumes remained robust at 773.4 million shares while traded value stood at Rs37.6 billion. The market is expected to find support around 122,000 with potential upside towards 127,000 in the coming week. "Stocks closed at an all-time high after the National Assembly passed Finance Bill 2025 amid political consensus. Investors eye State Bank's policy easing amid falling government bond yields in the recent auction," said Arif Habib Corp Managing Director Ahsan Mehanti. Surging global equities on a stable Iran-Israel ceasefire and rising global crude oil prices drove the PSX to a record close, he added. At the end of trading, the benchmark KSE-100 index posted a surge of 2,332.60 points, or 1.91%, and settled at 124,379.07. Arif Habib Limited (AHL) wrote in its daily review that on Friday, the index rose by 1.91%, led by strong performances from FFC (+2.23%), Lucky Cement (+4.28%) and Meezan Bank (+2.98%). On the flip side, Pakistan Services (-8.3%), National Foods (-1.76%) and International Steels (-0.8%) were the key drags on the index. In a positive development, Prime Minister Shehbaz Sharif and US Secretary of State Marco Rubio agreed to deepen bilateral ties, especially through enhanced trade. Meanwhile, the government of Pakistan secured $3.1 billion in commercial loans and over $500 million in multilateral funding, which would be reflected in the reserves update. In the energy sector, Pakistan Oilfields (+6.06%) and MOL announced new hydrocarbon discoveries in K-P's Makori Deep-03 well, expected to yield 22 mmcfd of gas and 2,112 barrels of oil per day, AHL mentioned. For the coming week, technical support is expected at around 122,000, with resistance seen near 127,000. It was a strong week for Pakistan's equity market, with the KSE-100 index gaining 3.6% week-on-week to close above the 124,000 mark, it added. Topline Securities, in its review, wrote that bulls dominated trading on aggressive buying by local institutions as the KSE-100 index increased 1.9% to close at its highest-ever level of 124,379. "This buying by local institutions can be attributed to fresh liquidity due to new fiscal year allocations towards equity funds," it said. Top positive contribution to the index came from FFC, Lucky Cement, Meezan Bank, Pakistan Oilfields, Engro Holdings, Engro Fertilisers and OGDC as they cumulatively contributed 1,044 points. Traded value-wise, Lucky Cement (Rs2.27 billion), OGDC (Rs2.11 billion), PSO (Rs1.97 billion), Pakistan Petroleum (Rs1.94 billion), Maple Leaf Cement (Rs1.09 billion), Hubco (Rs1.03 billion) and UBL (Rs1.02 billion) dominated the trading activity, Topline added. Mubashir Anis Naviwala of JS Global said bulls took charge on the trading floor, with the KSE-100 index climbing 2,332 points. Strong price action was seen across the board, reflecting renewed investor confidence. Broad-based buying interest lifted major sectors, boosting the overall market sentiment, he said. The rally was supported by robust demand for cement, banking and fertiliser stocks. The near-term outlook remains positive, with dips offering attractive entry opportunities, the analyst said. Overall, shares of 484 companies were traded. Of these, 334 stocks closed higher, 116 fell and 34 remained unchanged. Bank Makramah was the volume leader with trading in 79.7 million shares, gaining Rs0.56 to close at Rs5.07. It was followed by Ghani Global Holdings with 27.7 million shares, gaining Rs1.60 to close at Rs17.99 and Pervez Ahmed Consultancy with 24.9 million shares, losing Rs0.02 to close at Rs3.27. Foreign investors sold shares worth Rs1.2 billion, the National Clearing Company reported.
Business Recorder
20-06-2025
- Business
- Business Recorder
Lucky Cement says ‘unidentified flying object' hit Iraq plant
Lucky Cement Limited issued on Friday a clarification to the Pakistan Stock Exchange (PSX) to address what it called rumours arising from a video circulating on social media. The company reported 'negligible damage' to some electrical wiring at its cement plant in Iraq, adding the plant was full operational despite the incident. 'In accordance with Regulation 5.6.2 of the PSX Regulations read with Section 96 of the Securities Act, 2015, the following disclosure is being made to address the rumors arising from a video circulating on social media since yesterday and a clarification purported to be issued by the Company: 'In this regard, it is hereby informed that the cement plant, of the Company, under joint venture arrangement at Samawah, Iraq remains fully operational and no significant or material damage has been caused to the plant,' the company notice read. Lucky Cement further said the incident occurred due to an unidentified flying object colliding with the top part of the pre-heater installed at Samawah, Iraq which caused 'negligible damage to some electrical wiring'. Last month, Lucky Cement announced its new clinker line had started operations at Najmat Al-Samawah (NAS), located in Samawah. In May, 2023, Lucky and the Al-Shumookh group of Iraq resolved to enhance their clinker production capacity by adding a new line of 1.82 million tons per annum (MTPA) in Samawah.
