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PSX hails govt’s clarification on economic emergency with 280-point rise

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  • Bullish sentiment prevailed throughout the day.
  • KSE-100 index closes at 41,819.29 points with an increase of 0.67%.
  • Shares of 334 companies were traded during the session. 

The bulls staged a comeback at the Pakistan Stock Exchange (PSX) on Wednesday marking an end to the three-day-long losing streak as the benchmark KSE-100 index registered a decent rally.

The bullish sentiment prevailed throughout the day that kept the KSE-100 index in the positive territory.

The trading activity received a major boost on clarification from the Finance Division regarding economic emergency and the International Monetary Fund (IMF) ninth review.

A day earlier, the Finance Division rebutted reports of an “economic emergency” being imposed in Pakistan. 

“Finance Division not only strongly rebuts the assertions made in the said message, but also categorically denies it and that there is no planning to impose economic emergency,” a statement from the division read.

Moreover, it stated that with the efforts of the current government, the IMF programme has come back on track and negotiations leading to the ninth review are now at an “advanced stage”.

Earlier, the trading session started on a positive note and the KSE-100 index continued its upward march with minor oscillations.

The benchmark KSE-100 index closed at 41,819.29 points with an increase of 279.35 points or 0.67%.

Arif Habib Limited, in its post-market commentary, noted that the benchmark KSE-100 index finally ended its losing streak and traded in the green all day.

“Following a clarification by the Finance Division regarding the ninth review of the IMF programme, the market opened in the green and maintained its positive trend throughout the day,” it stated.

Investors gained confidence as mainboard volumes gained momentum and participation remained healthy, with third-tier stocks leading in terms of volume.

Sectors contributing to the performance included cement (+54.1 points), commercial banks (+48.5 points), technology and communication (+48.4 points), miscellaneous (+37.3 points), oil marketing companies (+26.4 points).

Shares of 334 companies were traded during the session. At the close of trading, 196 scrips closed in the green, 111 in the red, and 27 remained unchanged.

Overall trading volumes rose to 221.48 million shares compared with Tuesday’s tally of 131.69 million. The value of shares traded during the day was Rs5.86 billion.

Dewan Cement was the volume leader with 29.55 million shares traded, gaining Rs0.50 to close at Rs6.04. It was followed by WorldCall Telecom Limited with 21.47 million shares traded, losing Rs0.01 to close at Rs1.36 and Kohinoor Spinning Mills with 13.6 million shares gaining Rs0.41 to close at Rs3.15.

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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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