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KSE-100 extends gains with 79-point rise

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  • Index gains despite sluggish activity throughout the day.
  • KSE-100 index closes at 39,972.64 points.
  • Shares of 321 companies were traded today.

KARACHI: The Pakistan Stock Exchange (PSX) extended gains on Wednesday despite sluggish activity throughout the day as the benchmark KSE-100 index gained nearly 80 points.

Federal Minister for Finance and Revenue Miftah Ismail assured that there is no risk of Pakistan defaulting anymore, which sparked positive momentum at the PSX.

Earlier, trading kicked off with a spike with the index surpassing the 40,000-point mark in the first hour of the session.

However, the gloomy scenario on the back of the depreciating Pakistan rupee and political uncertainty in the wake of the Supreme Court’s verdict in the Punjab CM election shook investor confidence. The index dived by the end of the session.

At close, the benchmark KSE-100 index closed at 39,972.64 points with an increase of 78.59 points or 0.20%.

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

A report from Arif Habib Limited stated that PSX continued to remain under pressure throughout the day due to concerns regarding uncertain economic situations.

The benchmark KSE-100 index witnessed a volatile session as investors opted to remain sideways as the Pakistani rupee continued its freefall against the US dollar.

Mainboard volumes remained dry whereas decent volumes were observed in the third-tier stocks.

Sectors contributing to the performance included banks (+76.9 points), chemicals (+54.2 points), technology (+27.5 points), engineering (+14.4 points), and cement (+10.1 points).

Shares of 321 companies were traded during the session. At the close of trading, 153 scrips closed in the green, 141 in the red, and 27 remained unchanged.

Overall trading volumes dropped to 121.57 million shares compared with Tuesday’s tally of 131.86 million. The value of shares traded during the day was Rs4.19 billion.

Lotte Chemical was the volume leader with 10.21 million shares traded, gaining Rs1.50 to close at Rs28.50. It was followed by WorldCall Telecom with 9.26 million shares traded, losing Rs0.02 to close at Rs1.18 and TPL Properties with 9.01 million shares traded, losing Rs0.05 to close at Rs17.27.

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Pakistani authorities have ‘delivered’ on economic front, says top IMF official

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  • IMF official says Pakistan ‘important’ country in the world.
  • “Our country is destined to succeed,” says Masood Khan.
  • Nathan Porter hails actions and policies of Pakistani govt. 

WASHINGTON: Bahador Bijani, an Executive Director of the International Monetary Fund (IMF), has noted an overall improvement in the economic situation, saying, the “Pakistani authorities have delivered”.

He made these remarks at an event hosted by Pakistan’s ambassador to the US in honour of friends of Pakistan from International Financial Institutions including IMF, International Finance Corporation (IFC), World Bank (WB), and Multilateral Investment Guarantee Agency (MIGA), at Pakistan House in Washington.

“I think the future for Pakistan is very bright. Pakistan is not just any country. It’s one of the most important countries in the region and in the world. Pakistanis deserve much more,” the IMF executive director was quoted as saying in an official statement.

The meeting took place as Islamabad awaits the IMF board’s meeting to approve a staff-level agreement on the first review of a $3 billion bailout, which will unlock $700 million in funding for the country.

Addressing the event, Ambassador Masood Khan observed that the past year was difficult for Pakistan. “We have passed through a wrenching transition and we are moving toward a new phase of stability,” he added.

“Have faith in Pakistan. Our country is destined to succeed,” he said.

“Our confidence stems from the people of Pakistan. We have a growing middle class and our human capital is increasing at a very fast pace,” he added.

Addressing a gathering of over 40 guests from the IFIs, the ambassador said that we were grateful to IFIs for their steadfast support in navigating through a difficult economic period.

Nathan Porter, IMF Mission Chief to Pakistan, speaking on the occasion, expressed satisfaction over the recently concluded staff-level agreement. He said that the actions and policies of the current government reflected its commitment to steer the country towards stabilisation.

“With that base, hopefully, we can build on and be able to move forward to reforms to build a stronger, prosperous and inclusive Pakistan,” he said.

He also appreciated the cooperation and the policies pursued by the State Bank of Pakistan for ensuring fiscal stability in the country.

Athanasios Arvanitis, Deputy Director Middle East and Central Asia Department IMF, also spoke on the occasion and expressed the hope that the elections in Pakistan would usher into a new beginning of undertaking a reform process that the country needed to make progress and address some of its structural issues.

Thanking them for their strong support, Ambassador Khan observed that the digitisation of Pakistan’s economy was creating new opportunities in the country for its youth and professionals taking the lead role in steering the country towards a bright future.

Lauding the professional achievements of Pakistanis working in the IFIs, the ambassador observed that Pakistani professionals have proved their mettle and have made the entire nation proud of their accomplishments.

“We are a nation of talented people. If you can make it, Pakistan will also make it,” observed the ambassador.

Syed Ali Abbas, Advisor Mission Chief UK, European Department IMF, in his remarks, expressed the hope that with the successful completion of the electoral process in Pakistan, the country would move towards a long-term and more durable approach which would change the trajectory of Pakistan.

Aftab Qureshi from the World Bank and Sidra Rehman from the IMF also spoke on the occasion and assured their continued cooperation.

The ambassador thanked the members of the IFIs and said that the country looked forward to working with its development partners.

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SNGPL demands 137% increase in gas tariff

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  • SNGPL’s prescribed gas prices amount to Rs1,715.49 per MMBTu.
  • Company seeks revision of rate to Rs2,961.98/MMBTu.
  • SNGPL calculates cost of RLNG’s service at Rs72.16bn.

ISLAMABAD: To address the looming revenue shortfall, the Sui Northern Gas Pipeline Limited (SNGPL) is yet again demanding a significant 137% increase in the average prescribed gas prices, amounting to Rs1,715.49 per MMBTu.

The state-owned company, responsible for supplying gas to Punjab and Khyber Pakhtunkhwa, has submitted a formal request to the Oil and Gas Regulatory Authority (Ogra) for the fiscal year 2023-24, seeking a revision of the rate to Rs2,961.98/MMBTu, effective from July 1 of the current financial year.

The company’s petition to Ogra outlines an estimated revenue requirement for FY24 at Rs179.16 billion, including Rs697 million allocated for LPG air-mix projects in Gilgit for the ongoing fiscal year.

On this basis, SNGPL is seeking a hike in the average prescribed gas price by Rs506.35/MMBTu, effective from July 1, 2023. It has notably incorporated the cost of re-gasified liquefied natural gas (RLNG) diverted to domestic consumers into the overall cost of gas, in alignment with a decision by the federal cabinet on October 10, 2023.

Additionally, the utility has factored in Rs427.83 billion to offset shortfalls from previous years. To justify a 137.6% increase in average prescribed prices to Rs2,961.98/MMBTu from July 1, 2023, SNGPL cites the rise in the cost of gas/RLNG and other components outlined in its petition.

Furthermore, SNGPL has calculated the cost of RLNG’s service at Rs72.16 billion (equivalent to Rs293.07/MMBTu) for the current fiscal year. The company indicates that the subject petition is undergoing revisions based on actual cost data and sales figures for July and August 2023, resulting in a reduction of the indigenous gas business shortfall from Rs181.516 billion to Rs179.160 billion.

The revised segment-wise shortfall and RLNG business cost for FY2023-24 are detailed as Rs179.160 billion for indigenous gas business and Rs427.830 billion for shortfalls from previous years. The total indigenous gas business shortfall, inclusive of previous years’ shortfalls, amounts to Rs606.990 billion, with an additional Rs72.160 billion designated as the RLNG cost of supply, as stated in the petition.

Ogra has invited comments from all interested and affected parties, including gas consumers and the general public. A public hearing on the petition is scheduled for December 11, 2023, in Lahore, where the regulatory authority will determine the gas prices.

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PSX sets new record as KSE-100 crosses 63,000 mark

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KARACHI: Bulls on Monday gripped the Pakistan Stock Exchange (PSX) as the benchmark index achieved a new milestone by crossing the 63,000 mark for the first time. 

According to the PSX website, the benchmark KSE-100 index gained 447.13 points or 0.71% to reach 63,403.15 points during the intraday trading at 10:59am. 

KSE-100 index. — PSX website
KSE-100 index. — PSX website 

Pakistan-Kuwait Head of Research, Samiullah Tariq, told Geo.tv that major catalysts for the recent bull run in the equity market include strong profitability, attractive valuation, and expectations of a reduction in interest rate — scheduled to be announced on December 12.

He added that the “market should remain bullish in the coming days”.  

A day earlier, stocks were boosted by expectations of improved economic conditions following signs of progress in securing financial support from the International Monetary Fund (IMF) and friendly countries. 

Benchmark KSE-100 index rose 0.74% or 463 points to close at 62,956 points. 

Investors were confident about the outlook for the economy, which has shown some improvement in key indicators such as trade deficit, remittances and exports. The local currency also remained stable and gained for the sixth consecutive session.

“There is a positive sentiment in the market, driven by optimistic expectations of an improved economic landscape,” said analyst Naveed Nadeem at Topline Securities. 

“This positive outlook is supported by anticipated financial inflows from the IMF and friendly countries. Additionally, there is speculation about a potential reduction in interest rates in the upcoming monetary policy committee meeting, further enhancing the positive environment.”

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