Latest news with #AhsanMehanti
Express Tribune
3 hours ago
- Business
- Express Tribune
Stocks hit record as ADB loan fuels rally
Foreign funds would divert their liquidity into buying Pakistan's stocks. This would merely increases prices of shares and be profitable for those who already hold stocks. PHOTO: FILE Listen to article The Pakistan Stock Exchange (PSX) on Tuesday soared to an all-time high above 120,000 points as investor optimism grew following a string of positive economic developments. The approval of a $800 million loan by the Asian Development Bank (ADB) for Pakistan's public finance programme and the government's approval of a Rs880 billion Public Sector Development Programme (PSDP) bolstered market sentiment. The KSE-100 index surged to the intra-day high of 1,816 points, before closing the day with an increase of 1,573 points at 120,451. Commercial bank, fertiliser and cyclical stocks led to broad-based gains while higher trading volumes, which reached 578 million shares, reflected renewed investor confidence. According to Ahsan Mehanti of Arif Habib Corp, stocks closed at an all-time high, led by across-the-board activity, after the ADB approved a $800 million financing package. Additionally, the government set the FY26 growth target at 4.2% and approved Rs880 billion for the PSDP. Mehanti added that budgetary relief was expected to be announced for oil refineries, real estate and the agricultural sector. This, alongside the rupee appreciation, played the role of catalyst in bullish close at the PSX. At the end of trading, the benchmark KSE-100 index recorded an increase of 1,573.07 points, or 1.32%, and settled at 120,450.87. In its review, Topline Securities commented that bulls maintained their firm grip on the market, propelling the KSE-100 index to a record close at 120,451, supported by renewed investor confidence and an improving macroeconomic outlook. The index surged to the intra-day high of 1,816 points as momentum picked up sharply after news broke that the ADB had approved a $800 million loan under Pakistan's public finance programme – a major vote of confidence in the country's economic reform trajectory. Adding fuel to the rally, the International Monetary Fund (IMF) gave its nod to Pakistan's budget proposals, reinforcing hopes of continued fiscal discipline and policy continuity, Topline said. Driving Tuesday's rally were key index movers including Fauji Fertiliser Company, HBL, Engro Fertilisers, Lucky Cement and Bank AL Habib, which contributed 691 points, it added. In its commentary, Arif Habib Limited (AHL) remarked that the KSE-100 index unlocked 120,000 points at close on Monday, which bodes well for further upside during the remaining week. Some 65 shares rose while 31 fell, with Fauji Fertiliser Company (+1.79%), HBL (+5.19%) and Engro Fertilisers (+3.56%) contributing the most to index gains. On the flip side, Systems Limited (-0.84%), Service Industries (-1.55%) and Haleon Pakistan (-2.32%) were the biggest drags, it said. AHL also mentioned that the ADB approved $800 million for Pakistan's public finance programme aimed at strengthening fiscal sustainability and improving financial management. Meanwhile, the anti-trust body fined fertiliser makers for fixing a higher sale price, which adversely impacted farmers. "Holding 120k will allow the KSE-100 to extend gains towards 125k," it projected. JS Global analyst Mubashir Anis Naviwala said that the benchmark index surged throughout the day and reached a historic high at 120,451 points. Buying interest was witnessed across commercial banks, fertiliser and cyclical stocks, driving broad-based gains, he said. "With the index at the all-time high, a breakout could lead to fresh momentum and attract further institutional participation. We recommend investors to capitalise on this and invest in fundamentally strong stocks in the fertiliser, cement and banking sectors on any intra-day pullbacks," Naviwala stated. Overall trading volumes increased to 578.2 million shares compared with Monday's tally of 497.9 million. The value of shares traded was Rs26.8 billion. Shares of 467 companies were traded. Of these, 232 stocks closed higher, 187 fell and 48 remained unchanged. K-Electric was the volume leader with trading in 144.6 million shares, gaining Rs0.23 to close at Rs5.32. It was followed by Faysal Bank with 26.7 million shares, gaining Rs4.89 to close at Rs53.77 and Invest Bank with 25.5 million shares, gaining Rs0.04 to close at Rs2.35. Foreign investors sold shares worth Rs956 million, the National Clearing Company reported.
Arab News
13 hours ago
- Business
- Arab News
Pakistan stock market hits record high on ADB funding boost, insurance sector buying
ISLAMABAD: The Pakistan Stock Exchange (PSX) surged to an all-time high of more than 120,000 points on Tuesday, with analysts attributing the rally to the Asian Development Bank's (ADB) financing package for Pakistan and strong buying by insurance companies in banking, fertilizer and power sectors. The benchmark KSE-100 index closed at an unprecedented high of 120,450.87 points, marking a gain of 1,573.07 points, or 1.32 percent, from the previous day's close of 118,877.80. The development follows the ADB's approval of an $800 million package to help Pakistan enhance fiscal reforms and economic stability, alongside the government's approval of over Rs800 billion for public sector development projects in the upcoming budget. 'Stocks closed all time high led by scrips across the board after ADB approval of $800 million financing package,' Ahsan Mehanti, CEO of Arif Habib Commodities, told Arab News. 'Government set FY26 growth target at 4.2percent and government approval for Rs880 billion PSDP in the federal budget FY26 announcements next week.' Mehanti said the anticipated budgetary relief for oil refineries, real estate and agriculture sectors, along with gains in rupee's value, played a catalytic role in the bullish close at the PSX. Raza Jafri, head of Intermarket Securities, said this was the first time the KSE-100 Index has ever closed above the 120,000-point mark. 'Strong buying by insurance companies in sectors such as banks, fertilizers and power led the market higher,' he said. The budget for fiscal year 2025–26 is expected to be presented in Pakistan's lower house of parliament on June 10, following the Eid Al-Adha holidays. Pakistan's annual inflation rate rose to 3.5 percent in May, though the country's macroeconomic outlook has improved in recent months, supported by a stronger current account balance, increased remittances and declining inflation. Authorities remain cautious as they aim to build on recent economic stabilization, guide the country toward gradual growth, and reaffirm their commitment to ongoing economic reforms.
Express Tribune
16 hours ago
- Business
- Express Tribune
PSX closes above 120,000 points for first time
Listen to article The Pakistan Stock Exchange (PSX) closed at a record high, with the KSE-100 index ending the day at 120,450.87, marking its first-ever close above 120,000 points. The market gained 1,573.07 points or 1.32%, reaching an intra-day high of 120,693.83 and a low of 119,129.51. Trading volume stood at 315,235,806 shares, with a total value of 20,897,236,653. The previous close was 118,877.80. Record-breaking bullish sentiment comes ahead of Pakistan's budget this month. Earlier on Monday, the KSE-100 index experienced significant volatility, with an intra-day high of 1,018 points and a low of 899 points, ultimately closing at 118,878, down by 813 points (0.68%). The decline was mainly attributed to concerns over proposed tax hikes on banking and saving schemes, additional petroleum levies, and rising inflation. The Consumer Price Index (CPI) increased by 3.5% year-on-year in May due to higher food prices, dampening market sentiment. Analysts, including Ahsan Mehanti of Arif Habib Corp, noted that the bearish market was driven by uncertainty ahead of the FY26 budget, geopolitical tensions, and fluctuations in the rupee. Topline Securities highlighted that selling pressure came from concerns about a potential 2-3% tax hike on passive income. While some stocks like Pakgen Power, National Foods, Meezan Bank, and National Bank of Pakistan supported the index, stocks like Systems Limited, Engro Holdings, and Pakistan Petroleum weighed it down. Trading volume decreased to 497.9 million shares from 580.3 million on the previous day. The market saw mixed performance, with 29 stocks rising, 71 falling, and 464 companies traded overall. Dewan Cement was the volume leader, while foreign investors sold shares worth Rs1.97 billion. Analysts are cautious, suggesting that the market may face continued pressure in the short term, but it could present a buying opportunity in certain sectors like cement, automobile, and fertilizers.
Express Tribune
a day ago
- Business
- Express Tribune
Stocks close bearish amid tax hike concerns
The Pakistan Stock Exchange (PSX) endured a volatile session on Monday as investor interest remained muted ahead of the federal budget announcement. The KSE-100 index reached the intra-day high of 1,018 points before hitting the low of 899 points and closing at 118,878, a drop of 813 points, or 0.68%. Analysts attributed the bearish activity to reports of proposed tax hikes on banking and saving schemes as well as additional petroleum levies. Moreover, the inflation rate accelerated last month, reversing the decline recorded in previous months. The Consumer Price Index (CPI) rose 3.5% year-on-year in May on account of a jump in food prices, which further dampened market sentiment. Ahsan Mehanti of Arif Habib Corp commented that stocks closed under pressure in the pre-budget session. Reports of higher taxes on income from banking and saving schemes and petroleum levies in the FY26 budget impacted sentiment. Mehanti added that concerns over geopolitical tensions and rupee fluctuations also played the role of catalysts in bearish close at the PSX. At the end of trading, the benchmark KSE-100 index recorded a decrease of 813.29 points, or 0.68%, and settled at 118,877.81. In its review, Topline Securities stated that the stock market exhibited volatility, with the index fluctuating within a wide band, primarily influenced by global market trends. Local equities faced selling pressure amid uncertainty surrounding the upcoming budget and the government's proposed 2-3% hike in tax rate on passive income. The KSE-100 index reached the intra-day high of 1,018 points and intra-day low of 899 points, eventually closing at 118,878, a drop of 813 points, it said. Topline noted that the upward momentum was supported by notable gains in Pakgen Power, National Foods, Meezan Bank, the National Bank of Pakistan and Bank AL Habib, which added 201 points to the index. Conversely, losses in Systems Limited, Engro Holdings and Pakistan Petroleum dragged the index down by 341 points. In its commentary, Arif Habib Limited (AHL) said that Monday marked another session when the KSE-100 closed below 120,000 points. Some 29 shares rose while 71 fell, with Pakgen Power (+10%), National Foods (+9.93%) and Meezan Bank (+0.72%) contributing the most to index gains. On the flip side, Systems Ltd (-4.98%), Engro Holdings (-1.76%) and Pakistan Petroleum (-1.78%) were the biggest drags, it said. Pakistan's inflation rate accelerated in May, driven by a jump in food prices and reversing the decline seen in the last few months. The CPI rose 3.5% year-on-year, above AHL expectations of 3.04%. "The KSE-100 continues to tread water below 120,000 and several key support levels below 120k appear to be inevitable," AHL commented. JS Global analyst Mubashir Anis Naviwala commented that the PSX opened on a positive note and rallied to the intra-day high of 120,591 points. Later, selling pressure dragged the index down to close at 118,878, lower by 813 points. "Looking ahead, we expect market pressure to persist in the near term; however, this may present a buying opportunity in select sectors. Investors are advised to accumulate fundamentally strong stocks in the cement, automobile and fertiliser sectors on dips," the analyst added. Overall trading volumes decreased to 497.9 million shares compared with Friday's tally of 580.3 million. The value of shares traded was Rs23.5 billion. Shares of 464 companies were traded. Of these, 193 stocks closed higher, 231 fell and 40 remained unchanged. Dewan Cement was the volume leader with trading in 40.4 million shares, gaining Rs0.60 to close at Rs12.67. It was followed by Invest Bank with 31.9 million shares, gaining Rs0.84 to close at Rs2.31 and K-Electric with 30.9 million shares, falling Rs0.23 to close at Rs5.09. Foreign investors sold shares worth Rs1.97 billion, the National Clearing Company reported.
Express Tribune
4 days ago
- Business
- Express Tribune
Stocks surge on budget relief prospects
Listen to article The Pakistan Stock Exchange (PSX) closed the week on a bullish note on Friday, lifted by strong gains in blue-chip oil, banking and fertiliser stocks amid growing optimism about the upcoming federal budget measures. The benchmark KSE-100 index surged over 700 points. Analysts attributed the rally to investor hopes for pro-growth budgetary announcements, including some relief for oil refineries, real estate and agriculture sectors, along with a proposed 1.5% levy on imports aimed at supporting local industries and stabilising the rupee. Despite the upbeat close, the benchmark index remained shy of the 120,000 milestone, posting a 0.5% weekly gain. "Stocks closed bullish, led by blue-chip shares of oil, banking and fertiliser sectors amid hopes for positive federal budget announcements," said Arif Habib Corp Managing Director Ahsan Mehanti. "Budgetary relief for oil refineries, real estate and agri-sector, a proposed 1.5% tax on imports to support industries and rupee stability played the role of catalysts in bullish close at the PSX," he added. At the end of trading, the benchmark KSE-100 index recorded a rise of 719.69 points, or 0.60%, settling at 119,691.09. Arif Habib Limited (AHL) wrote that the PSX closed the week with a 0.5% gain, although the index remained below the 120,000 mark. On Friday, 58 stocks advanced while 41 declined. Key contributors to the gains included Fauji Fertiliser Company (FFC, +2.24%), Meezan Bank (+4.4%) and Hubco (+1.6%) while TPL REIT Fund 1 (-7.63%), Pakistan Petroleum (-1.03%) and Pakistan Oilfields (-1.31%) were the major drags. Among macro developments, Azerbaijan announced a $2 billion investment package for Pakistan during a trilateral summit with Turkey. Meanwhile, the State Bank purchased $5.9 billion from the currency market since June 2024 to strengthen its foreign exchange reserves. On the fiscal front, the FBR is proposing higher withholding tax rates for vehicles with engine capacities above 1,300cc in the upcoming budget. In the corporate sector, Pharaon Investment Group's potential divestment of ACPL is drawing interest from competitors including Cherat Cement and Bestway Group, AHL added. Topline Securities, in its daily review, wrote that continuing its previous day's momentum, the KSE-100 index largely traded in the positive zone and closed at 119,691, up 0.60%. The top positive contribution to the index came from FFC, Meezan Bank, Hubco, Pakgen Power, Engro Holdings and MCB Bank as they cumulatively contributed 668 points. Traded value-wise, Attock Refinery (Rs1.66 billion), DG Khan Cement (Rs878 million), Hubco (Rs807 million), FFC (Rs708 million), Meezan Bank (Rs661 million) and Mari Petroleum (Rs607 million) dominated the trading activity, Topline said. Muhammad Hasan Ather of JS Global said the KSE-100 index extended its bullish momentum, climbing 720 points to close at 119,691. The rally was driven by strong investor sentiment amid declining inflation, current account surplus and Fitch's upgrade of Pakistan's credit rating to "B-". Robust activity in banking, energy and cement sectors further buoyed the sentiment. With over 1,358 points added in two sessions, the momentum suggests a continued upside, contingent on sustained macroeconomic stability and clarity on political and external financing developments, he said. Overall trading volumes stood at 580.3 million shares, significantly lower than the previous session's 741.7 million. The total traded value was Rs22.7 billion, down from Rs23.9 billion in the previous session. A total of 474 companies were traded, out of which 259 stocks closed higher, 161 declined and 54 remained unchanged. WorldCall Telecom led the volumes chart with 79.7 million shares, losing Rs0.06 to close at Rs1.37. K-Electric followed with 47.7 million shares, losing Rs0.20 to settle at Rs5.32. Cnergyico PK saw trading in 35.8 million shares, gaining Rs0.07 to close at Rs7.86. Foreign investors sold shares worth Rs612.5 million, the National Clearing Company reported.
