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Bulls stage comeback at PSX on Ishaq Dar’s cues

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  • Investors cheer Dar’s assurance Pakistan will not seek debt restructuring from Paris club.
  • Benchmark KSE-100 index traded between hope and despair.
  • Investors kept a close watch on SBP’s decision on monetary policy.

KARACHI: The bulls staged a comeback at the Pakistan Stock Exchange (PSX) on Monday cheering Finance Minister Ishaq Dar’s assurance that Pakistan will not seek debt restructuring from the Paris club.

Constant assurance from the top leadership that Pakistan will not seek debt restructuring from Paris Club creditor nations enticed market participants. 

Moreover, Dar dismissed market rumours that the government might extend maturities for its bonds, saying that the country will fulfil all multilateral, international and bond obligations.

The benchmark KSE-100 index traded between hope and despair, which eventually let loose the bulls, who pulled the bourse into the green.

Investors kept a close watch on the State Bank of Pakistan’s decision on the monetary policy — which was later kept unchanged at 15% for the next seven weeks.

The KSE-100 index gained since the morning bell rang, but some dips were seen at regular intervals. The downtrend turned steeper at midday bulls managed to regain control.

The benchmark KSE-100 index closed at 42,211.64 points with an increase of 126.39 points or 0.30%.

Benchmark KSE-100 index intra-day trading curve. — PSX data portal
Benchmark KSE-100 index intra-day trading curve. — PSX data portal

Topline Securities in its post-market commentary noted that the KSE-100 index largely traded in the positive zone due to Dar’s statement regarding Pakistan not planning to seek a debt restructuring.

Shares of 336 companies were traded during the session. At the close of trading, 161 scrips closed in the green, 149 in the red, and 26 remained unchanged.

Overall trading volumes declined to 240.19 million shares compared with Friday’s tally of 313.34 million. The value of shares traded during the day was Rs10.53 billion.

Worldcall Telecom was the volume leader with 31.15 million shares traded, gaining Rs0.03 to close at Rs1.63. It was followed by Pak Elektron with 27.14 million shares traded, gaining Rs1.21 to close at Rs17.45 and TRG Pakistan with 26.74 million shares gaining Rs7.29 to close at Rs151.43.

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An investigation was “launched” into PTA’s inability to get Rs. 78 billion back from Telcos

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The PTA has reportedly been instructed to reply to NAB by July 29. According to the enquiry, the national exchequer has suffered losses as a result of the delay in collecting dues.

The PTA has been asked to provide NAB with information about any pertinent records, court proceedings, and overdue bills. The NAB Karachi has summoned the PTA officials to appear with all pertinent documentation.

All of the principle sum has to be paid by the LDI firms, according to sources. But due to judicial stay orders, the collection of dues has been impeded.

These sources further state that a steering group has been established by the Ministry of IT to supervise the issue of dues recovery.

In a previous event, the tariffs levied on importing cell phones from outside were clarified by the Pakistan Telecommunication Authority (PTA).

Contrary to what some internet reports claim, PTA clarified in response to recent news regarding the tariffs on mobile phone imports that there hasn’t been a formal decision to remove these levies in Pakistan.

the PTA.Pakistanis living abroad will be the only ones free from these levies, according to the PTA. A SIM card can be inserted and the phone restarted to temporarily register a device for non-PTA mobile subscribers.

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Weekly inflation in Pakistan increased by 0.17 percent.

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The SPI for the week under review in the aforementioned group was reported at 321.95 points, as opposed to 321.40 points during the previous week, according to the PBS statistics.

The SPI for the combined consumption group saw a 20.09 percent increase in the week under review compared to the same week the previous year.

The weekly SPI includes 51 necessary items for every spending group and 17 urban areas, with a base year of 2015–16 = 100.

The SPI for the lowest consumption category, which is up to Rs 17,732, grew by 0.08 percent from 311.97 points to 312.22 points this past week.

0.18 percent,The index of consumption for the lowest consumption groups, which are Rs 17,732-22,888, Rs 22,889-29,517, Rs 29,518-44,175 and above Rs 44,175; increased by 0.13 percent, 0.15 percent, 0.18 and 0.19 percent, respectively.

Nineteen (37.25%) of the fifty-one commodities had price increases over the week, eight (15.69%) had price decreases, and twenty-four (47.06%) had unchanged pricing.

On a weekly basis, the following commodities saw significant price decreases: tomatoes (9.19%), onions (2.14%), LPG (1.04%), bananas (0.53%), wheat flour (0.35%), potatoes (0.17%), pulse masoor (0.16%), and bread (0.05%).

Chicken (4.80%), garlic (2.01%), pulse gramme (1.87%), eggs (1.71%), beef (0.93%), gur (0.89%), pulse moong (0.84%), fresh milk (0.45%), firewood (0.23%), and cigarettes (0.12%) were among the items whose average prices increased significantly week over week.

The commodities that saw a year-over-year decline were: wheat flour (31.75%); cooking oil (13.44%); vegetable ghee 2.5 kg (10.42%); vegetable ghee 1 kg (9.85%); mustard oil (8.33%); eggs (5.82%); rice basmati broken (4.15%); and tea package (2.52%).

Gas prices for Q1 (570.00%), onions (96.01%), pulse gramme (40.39%), powered milk (39.11%), garlic (34.61%), pulse moong (29.77%), men’s sandals (25.01%), beef (23.52%), salt powder (23.28%), pulse mash (22.50%), and energy saver (17.96%) were among the commodities whose average prices increased year over year.

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The price of gold has drastically dropped in Pakistan.

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As per the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the cost of 24-karat gold per tola decreased by Rs 2,300, standing at Rs 250,500.

A kilogramme of 24-karat gold costing Rs1,972 less at the local market, making it worth Rs2114,763. Ten grammes of 22-karat gold had a price decrease to Rs196,866 as well.

After losing a significant $43 during the day, the rate per ounce of gold on the international market also decreased. It currently stands at $2,370.

On Thursday, the price of 24-karat silver also experienced a decline, falling by Rs60 to settle at Rs2,860 petal.

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