Business

PSX weekly review: KSE-100 index posts highest weekly gain in two years

Published

2 years ago

Farwa

Benchmark KSE-100 index surges 4.9% during the week.
Gains come on the back of clarity on the political front.
A weekly rally of a similar extent was last witnessed in April 2020.

KARACHI: The outgoing week proved to be an outstanding one for the stock market as it recorded phenomenal gains on the back of clarity on the political front.

The KSE-100 index surged 4.9%, marking the highest week-on-week increase in two years, to settle at 46,601 points. A weekly rally of a similar extent was last witnessed in April 2020.

In the outgoing week, the market roared back after political clarity emerged. Following Prime Minister Shehbaz Sharif’s oath-taking ceremony, the new coalition government began work to tackle the economy.

Moreover, the rupee recovered against the dollar at a rapid pace, marking a 3.6% appreciation. Additionally, the country received record-high remittances this month clocking in at $28.3 billion, showing a 28% increase month-on-month, on account of Ramadan and Eid.

Other major developments during the week were: SBP’s reserves slip below $11 billion, banks approved Rs180 billion in housing loans, Pakistan Telecommunication Authority (PTA) renewed mobile operator licence for $486 million, cars’ sales surged 53.78% in nine months, Rs1 billion Islamic finance facility for renewable energy power plants, weekly inflation witnessed the biggest rise since November.

Meanwhile, foreign buying was witnessed this week, clocking in at $1.29 million against a net sell of $3.78 million recorded last week. Buying was witnessed in technology ($2.21 million), and fertiliser ($1.16 million).

On the domestic front, major selling was reported by a mutual fund ($9.89 million), followed by insurance companies ($7.76 million).

During the week under review, average volumes clocked in at 477 million shares (up by 213% week-on-week), while average value trade settled at $66.3 million (up by 135.6% week-on-week).

Major gainers and losers of the week

Sector-wise positive contributions came from commercial banks (+395 points), fertiliser (+292 points), technology and communication (+268 points), cement (+241 points), and refinery (+129 points). On the flip side, negative contributions came from real estate investment trust (-2.19 points), and vanaspati and allied industries (-1.55 points).

Scrip-wise major gainers were Engro Corporation (+152 points), TRG Pakistan (+136 points), Meezan Bank (+122 points), HBL (+85 points) and Systems Limited (+80 points). Meanwhile, major losers were Colgate-Palmolive (-14 points), Faysal Bank (-10.88 points), Fatima Fertilisers (-4.74 points), Allied Bank (-3.18 points), and Dolmen City REIT (-2.19 points).

Outlook for next week

A report from AHL predicted: “We expect the market to remain positive in the upcoming week. With the commencement of the result season and clarity on the political front, certain sectors and scrips are expected to stay under the limelight.”

“Furthermore, we are expecting the rollover of Chinese loans worth $2.3 billion and IMF negotiations, will help bolster our foreign exchange reserves.,” it said, adding that any dip in oil prices should also have a positive impact on the equity bourse.

“The KSE-100 is currently trading at a PER of 5.0x (2022) compared to the Asia-Pacific regional average of 11.5x while offering a dividend yield of 8.3% versus 2.6% offered by the region,” the brokerage house stated.

Business

Pakistan’s gold prices are still declining; see the most recent

Published

2 days ago

Farwa

The price of 10-gram gold reduced by Rs943 to settle at Rs207,733, while the price of gold dropped by Rs1200 to close at Rs242,300 a tola, according to the Sindh Sarafa Jewellers Association.

In the global market, the price of the precious metal fell by $10 to $2,349 per ounce, resulting in losses.

At 04:48 GMT, the spot price of gold had dropped by 0.2% to $2,354.77 per ounce. In the previous session, prices reached a two-week high.

American gold futures dropped 0.6% to $2,361.

Spot silver decreased by 0.4% to $28.03 per ounce, while palladium remained steady at $978.03 and platinum decreased by 0.1% to $992.89.

Business

Pakistan and the IMF begin talks for a new loan.

Published

2 days ago

Farwa

Pakistan is requesting a $6 to $8 billion bailout package from the international lender over the next three to four years to address its financial troubles.

A mission team led by Nathan Porter, the IMF’s Mission Chief in Pakistan, is meeting with a Pakistani delegation led by Finance Minister Muhammad Aurangzeb.

According to sources familiar with the situation, Islamabad may face more difficult options, such as raising power and gas bills.

Mr. Aurganzeb informed the IMF team that the country’s economy has improved as a result of the IMF loan package, and Islamabad is ready to sign a new loan programme to further develop.

The IMF mission expressed satisfaction with Islamabad’s efforts to revive the country’s struggling economy.

The IMF praised Pakistan’s economic growth in its staff report earlier this week, but warned that the outlook remains challenging, with very high downside risks.

The country nearly avoided collapse last summer, and its $350 billion economy has stabilized since the end of the last IMF program, with inflation falling to roughly 17% in April from a record high of 38% last May.

Business

Petrol prices are likely to drop significantly beginning May 16.

Published

2 days ago

Farwa

According to sources, the government is set to decrease petrol prices by Rs 14 per litre and diesel prices by Rs 10 on May 16 for the next fortnight’s revision.

Last month, the government reduced the price of fuel and high-speed diesel by Rs5.45 and Rs8.42 per fortnight, respectively.

The current fuel price is Rs288.49 per litre, while the HSD price is Rs281.96.

Meanwhile, oil prices fell further on Monday, as signs of sluggish fuel consumption and comments from U.S. Federal Reserve officials dimmed optimism for interest rate reduction, which may slow growth and reduce fuel demand in the world’s largest economy.

Brent crude prices down 25 cents, or 0.3%, to $82.54 a barrel, while US West Texas Intermediate crude futures fell 19 cents, or 0.2%, to $78.07 per barrel.

Oil prices also declined on signals of poor demand, according to ANZ analysts, as gasoline and distillate inventories in the United States increased in the week before the start of the driving season.

Refiners throughout the world are dealing with falling diesel profitability as new refineries increase supply and warm weather in the northern hemisphere and weak economic activity reduce demand.