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Express Tribune
03-07-2025
- Business
- Express Tribune
Stocks continue bull-run, reach fresh peak
Listen to article Positive momentum continued at the Pakistan Stock Exchange (PSX) on Thursday as the KSE-100 index extended its upward trajectory to close at a new all-time high with addition of 342.63 points. Investor sentiment remained robust, which propelled the benchmark index to intra-day high of 131,325. At close, the market settled at 130,686.66, higher by 0.26%. The rally was led by index-heavy sectors, particularly oil & gas, banking and power. However, overall trading remained mixed. Among major triggers, Pakistan's foreign exchange reserves jumped $5.1 billion to $14.5 billion by the end of FY25. This rise reflects improvement in the current account balance and the realisation of planned inflows. Market Snapshot – July 3, 2025 Unlock today's market moves and stay one step ahead! — PSX (@pakstockexgltd) July 3, 2025 KTrade Securities wrote in its report that the bourse experienced a mixed day as the KSE-100 index encountered general profit-taking, especially in the banking segment. Notable gains were witnessed in the oil & gas and power categories where Oil and Gas Development Company, UBL, Hub Power, Pakistan Petroleum and Askari Bank added the most points. The report predicted a broadly optimistic outlook, contingent on continued geopolitical stability. Arif Habib Limited Deputy Head of Trading Ali Najib commented that the PSX witnessed a tug of war between bulls and bears throughout the session. Ultimately, the bulls prevailed, lifting the benchmark index by 343 points (+0.26%) to close at 130,687. The session opened on a positive note following the State Bank of Pakistan's announcement a day ago that its foreign exchange reserves stood at $14.5 billion at the close of FY25, in line with the commitment given to the International Monetary Fund (IMF), it mentioned. The upbeat development triggered a bullish rally, pushing the index to intra-day high of 131,325 (+981 points, or 0.75%). However, the optimism proved short-lived as profit-taking set in, dragging the index to intra-day low of 129,776 (-568 points, or 0.44%), before buyers regained control. Top contributors to the index included Oil and Gas Development Company, UBL, Hub Power, Pakistan Petroleum and Askari Bank, which collectively added 487 points. On the flip side, Bank AL Habib, MCB Bank, Meezan Bank, HBL and Millat Tractors pulled the index down by 493 points, AHL added. Overall trading volumes decreased to 899.8 million shares compared with Wednesday's tally of 1.03 billion. The value of shares traded was Rs43.3 billion. Shares of 468 companies were traded. Of these, 216 stocks closed higher, 236 fell and 16 remained unchanged.
Express Tribune
15-04-2025
- Business
- Express Tribune
Bourse extends gains on rating upgrade
Shares of 340 companies were traded. At the end of the day, 93 stocks closed higher, 233 declined and 14 remained unchanged. PHOTO: FILE Listen to article Pakistan Stock Exchange (PSX) on Tuesday continued its upward momentum as investors remained optimistic in the backdrop of positive triggers, particularly the upgrade of Pakistan's long-term foreign currency issuer default rating to "B-" with a stable outlook. Analysts mentioned that a surge in global equities, alongside easing inflation and upbeat remittances data, drove the rally. The benchmark KSE-100 index, following continuous fluctuations, reached its intra-day high at 117,362 points after midday. Later, it started descending gradually and hit the day's low at 116,646 just before close. It ended the day with a gain of 385 points at 116,775. According to Ahsan Mehanti of Arif Habib Corp, stocks closed higher in the earnings season rally amid reports of Fitch Ratings' upgrade of Pakistan's long-term foreign currency issuer default rating to "B-" with a stable outlook. He added that surging global equities, upbeat remittances data and lower inflation played the role of catalysts in bullish close at the PSX. At the end of trading, the benchmark KSE-100 index recorded an increase of 385.47 points, or 0.33%, and settled at 116,775.50. In its review, Topline Securities commented that the PSX ended on a strong note, with the KSE-100 index gaining 385 points. The positive momentum was supported by the stability in global markets and the onset of corporate results season, prompting investors to take fresh positions. Gains were largely driven by key index movers including Engro Holdings, Lucky Cement, Oil and Gas Development Company, TRG Pakistan and Pakistan State Oil (PSO), which added 325 points, it said. In its report, Arif Habib Limited (AHL) remarked that early gains failed to sustain above the 117,000 level and the "Monday Tariff Gap" continued to cap gains. Some 51 shares rose while 45 fell on KSE-100. Lucky Cement (+1.58%), TRG Pakistan (+6.28%) and Oil and Gas Development Company (+1.08%) contributed the most to the index gains while Hub Power (-0.89%), Meezan Bank (-0.82%) and Mari Petroleum (-0.58%) were the biggest drags, AHL noted. It added that Fitch upgraded Pakistan's long-term foreign currency debt rating to B- from CCC+. The upgrade reflects Fitch's increased confidence that Pakistan will sustain its recent progress on narrowing budget deficits and implementing structural reforms, supporting its IMF programme performance and funding availability. Additionally, the government forecast production of 28.6 million tons of wheat, a decrease of 10.6% year-on-year. The brokerage house said that the "Monday Tariff Gap" between 117,600 and 118,600 points remained the key level for the current week. JS Global analyst Muhammad Hasan Ather stated that KSE-100 continued its upward trajectory, rising 0.8% to reach the intra-day high of 117,362 amid strong trading volumes. It was fuelled primarily by record-breaking remittances of $4.1 billion and the SBP governor's projection of $14 billion in foreign currency reserves by June 2025. Market sentiment received additional support from the Fitch rating upgrade. With improving external accounts and strong liquidity flows, "we expect continued positive momentum in the market, particularly in banking and export-oriented sectors", the analyst said. Overall trading volumes decreased to 479.5 million shares compared with Monday's tally of 484.5 million. The value of shares traded during the day was Rs30.4 billion. Shares of 447 companies were traded. Of these, 219 stocks closed higher, 174 fell and 54 remained unchanged. Cnergyico PK was the volume leader with trading in 32.1 million shares, falling Rs0.11 to close at Rs8.53. It was followed by TRG Pakistan with 21.5 million shares, gaining Rs4.01 to close at Rs67.90 and The Bank of Punjab with 20.8 million shares, falling Rs0.19 to close at Rs11.17. During the day, foreign investors sold shares worth Rs527 million, the National Clearing Company reported.
Express Tribune
25-03-2025
- Business
- Express Tribune
OGDC raises funding for Reko Diq project
Listen to article The board of directors of Oil and Gas Development Company (OGDC) has approved an increase in the firm's funding commitment to $627 million, including the project financing cost, which reflects its proportional share of total capital investment in the multibillion-dollar Reko Diq copper and gold mining project. The approval came in the wake of completion of an updated feasibility study on the Reko Diq project, located in Chagai, Balochistan. The increase in investment takes into account the estimated rise in copper and gold prices, which will help offset higher project costs. Equity contribution by company shareholders, after considering project financing, is expected to be $349 million (to be adjusted for actual project financing costs and inflation). OGDC on Tuesday announced the completion of the updated feasibility study, marking a significant milestone in Pakistan's journey towards unlocking one of the world's largest copper and gold reserves. OGDC holds an 8.33% shareholding in the Reko Diq project as part of a collective 25% stake held by three Pakistani state-owned enterprises, which also include Pakistan Petroleum Limited and Government Holdings (Private) Limited. The interest of state units is managed through Pakistan Minerals (Private) Limited. Out of the remaining 75% stake, 25% is held by the government of Balochistan (15% on a fully funded basis through Balochistan Mineral Resources Limited and 10% on a free carried basis) and 50% is with Barrick Gold Corporation – the operator of the project. The updated feasibility study outlines a mine life of 37 years, divided into two phases. Phase-I entails an estimated capital outlay of $5.6 billion (excluding financing costs and inflation) and is expected to commence operations in 2028. A limited-recourse financing facility of up to $3 billion is being pursued, with the remaining funding to be provided through shareholder contribution. Negotiations for project financing are ongoing. The project will leverage five of the 15 currently identified porphyry surface expressions under the current mining lease, which highlights a substantial future growth potential. Phase-II is planned to be funded through a mix of revenue generation from the project, additional financing and shareholder contribution (if required). Under the updated feasibility study, phase-I is planned to process 45 million tonnes of mill feed annually from 2028. By 2034, phase-II is planned to double the processing capacity to 90 million tonnes per annum. Based on the existing reserves, the Reko Diq project is expected to churn out 13.1 million tonnes of copper and 17.9 million ounces of gold over the life span of the mine (on a 100% basis). The completion of the feasibility study represents a major achievement for the Reko Diq project, reinforcing its potential to generate long-term economic benefits, create jobs and ensure enhanced revenue streams for Pakistan.
