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Express Tribune
6 days ago
- Business
- Express Tribune
KSE-100 retreats on budget jitters, taxes
Listen to article The Pakistan Stock Exchange (PSX) witnessed a volatile session on Thursday, with the benchmark KSE-100 index retreating after hitting record highs a day earlier. Investor sentiment turned cautious due to concerns about stringent conditions linked to a new International Monetary Fund (IMF) programme, including proposed enforcement of agriculture income tax and the IMF's opposition to provincial energy subsidies. Adding to the bearish outlook were fears of aggressive fiscal measures in the upcoming FY26 federal budget. These include possible new taxes on banking and savings income, along with anticipated hikes in petroleum levies on petrol and diesel. A weakening rupee and a 10% year-on-year (YoY) decline in exports for May also dampened investor confidence. Arif Habib Corporation Managing Director Ahsan Mehanti commented that the market declined following reports of IMF pressure for strict enforcement of agriculture taxation and improved tax collection mechanisms, while resisting provincial subsidies on power. "Expectations of higher taxes on banking and savings, increased petroleum levies, rupee instability, and a sharp YoY decline in exports all weighed on sentiment," he said. The KSE-100 index closed at 121,641 points, down 157.87 points or 0.13% from the previous day. Despite the decline, the market remained within a broad range throughout the session, with an intra-day high of +483 points and a low of -281 points, according to Topline Securities. The firm noted that the range-bound activity came ahead of the long Eid holidays, following a recent rally. Topline also highlighted the most traded companies by value, with Unity Foods leading at Rs1.67 billion, followed by Engro Holdings (Rs1.24 billion), K-Electric (Rs1.03 billion), Searle Company (Rs847 million), and TRG Pakistan (Rs785 million). Arif Habib Limited (AHL) noted that despite the minor setback, the week had remained positive overall, with the market touching all-time highs. Engro Holdings (+3.24%), Pakgen Power (+10.0%), and Service Industries (+5.49%) contributed to the index's gains. On the downside, Meezan Bank (-2.11%), Systems Ltd (-1.68%), and Fauji Fertilizer (-0.5%) were key laggards. In broader developments, Prime Minister Shehbaz Sharif is scheduled to visit Saudi Arabia on June 5-6 to meet Crown Prince Mohammed bin Salman for talks on bilateral cooperation, regional security, and economic collaboration. Meanwhile, Sui Northern Gas Pipelines Limited (SNGPL) stated in a corporate briefing that its capital expenditure (capex) is expected to hover around Rs30 billion annually over the coming years. Analysts projected 120,000 points to act as a post-Eid base level for the KSE-100, with potential to move higher provided macroeconomic stability continues. KTrade Securities echoed similar views in its market wrap, observing that despite the volatility, trading activity remained strong with volume reaching 854 million shares. Leading the volume chart were K-Electric (179 million shares), Unity Foods (62 million), and WorldCall Telecom (52 million). However, slight profit-taking was noted in banking, cement, and oil and gas sectors. KTrade added that investors are expected to stay cautious in the lead-up to the federal budget announcement on June 10, 2025. JS Global analyst Mubashir Anis Naviwala reported that the index had opened positively and surged to a new intra-day high of 122,281, but profit-taking dragged it down by the close. Notable trading activity was seen in oil & gas, fertiliser, power, and banking sectors. A total of 478 companies' shares were traded. Among them, 217 closed higher, 208 declined, and 53 remained unchanged. K-Electric was the volume leader, gaining Rs0.42 to close at Rs5.83. It was followed by Unity Foods, which rose Rs0.75 to close at Rs26.89, and WorldCall Telecom, which added Rs0.05 to close at Rs1.42. Foreign investors sold shares worth Rs271.6 million, according to the National Clearing Company.
Express Tribune
24-05-2025
- Business
- Express Tribune
Budget uncertainty keeps PSX restrained
Listen to article The Pakistan Stock Exchange (PSX) closed the week on a negative note with a loss of 50 points, weighed down by growing investor anxiety ahead of the federal budget and concerns over proposed International Monetary Fund (IMF)-backed tax measures targeting exporters and industrial sectors. Friday's session reflected narrow, range-bound trading before settling slightly lower at a level above 119,100 points. Despite intra-day gains above the 120,000 mark, the KSE-100 index failed to hold the momentum, with resistance firmly capping advances. 'Stocks closed lower amid pre-budget uncertainty and concerns over weak exports,' noted Arif Habib Corp Managing Director Ahsan Mehanti. Investor concerns over IMF-driven new tax measures proposed for exporters and industries, the National Assembly's approval of Off-grid (CPPs) Levy Bill and rupee instability played the role of catalysts in negative close. At the end of trading, the benchmark KSE-100 index recorded a decline of 50.37 points (-0.04%), settling at 119,102.67. Arif Habib Limited (AHL) stated that 39 stocks advanced while 59 declined, with Engro Holdings (+3.08%), Attock Refinery (+3.48%) and Pakgen Power (+4.6%) emerging as the top contributors to index gains. On the downside, Fauji Fertiliser Company (FFC, -1.91%), MCB Bank (-1.09%) and Systems Limited (-0.98%) weighed on the benchmark index. Despite briefly moving above the 120,000 level during the week, the index failed to sustain the momentum, with strong resistance at 120k holding firm. While a breakout is anticipated, the market's inability to stay above 120k raises the risk of further declines towards support levels, AHL said. "A range-bound session was observed at the exchange on the last trading day of the week as the index traded between the intra-day high of +389 points and intra-day low of -488 points with low volumes to finally close at 119,103 (down 0.04%)," Topline Securities wrote in its market review. The top positive contribution to the index came from Engro Holdings, Attock Refinery, Pakgen Power, Meezan Bank and Pakistan Services as they cumulatively added 280 points. On the other hand, the top negative contribution came from FFC, MCB Bank, Systems Limited, Mari Petroleum, Pakistan Petroleum, HBL, Hubco and Engro Fertilisers, which pulled the index down by 257 points. Traded value-wise, Attock Refinery (Rs1.49 billion), Frieslandcampina Engro (Rs1.01 billion), Mari Petroleum (Rs564 million), Hubco (Rs557 million) and Pakistan Petroleum (Rs505 million) dominated the activity, Topline added. "Dull activity was observed on the last trading day of the week as investors adopted a cautious stance and preferred to stay on sidelines ahead of the federal budget," wrote Mohammed Waqar Iqbal of JS Global. The KSE-100 index fluctuated between the intra-day high of 119,542 points (+389) and the low of 118,665 points (-487), before closing with a marginal loss of 50 points at 119,102. Trading volumes remained thin throughout the day, with major participation seen in sideboard stocks. "Going forward, we expect the market to continue consolidating; hence, investors are advised to wait for dips before taking fresh positions," he said. Overall trading volumes were recorded at 338 million shares compared with the previous tally of 589.8 million. The value of shares traded during the day was Rs18.5 billion. Shares of 459 companies were traded. Of these, 183 stocks closed higher, 232 fell and 44 remained unchanged. Big Bird Foods was the volume leader with trading in 32.7 million shares, gaining Rs2.09 to close at Rs53.86. It was followed by WorldCall Telecom with 19.4 million shares, losing Rs0.02 to close at Rs1.25 and Descon Oxychem with 16.1 million shares, gaining Rs2.28 to close at Rs35.96. During the day, foreign investors sold shares worth Rs336.5 million, according to the NCCPL.
Express Tribune
17-05-2025
- Business
- Express Tribune
PSX loses ground in range-bound session
Listen to article The Pakistan Stock Exchange (PSX) closed lower on Friday as the benchmark KSE-100 index dropped over 300 points after a range-bound session. The index oscillated between the intra-day high of +544 points and intra-day low of -421 points, reflecting investor caution after recent record-breaking gains. The muted sentiment was largely driven by a lack of fresh triggers and a wait-and-see approach ahead of the weekend. Positive contributions from Engro Holdings, Systems Limited, Bank AL Habib, UBL and Bank Alfalah added 271 points, but were outweighed by declines in Fauji Fertiliser Company (FFC), Lucky Cement, Mari Petroleum, OGDC, PSO and Engro Fertilisers, which dragged the index down by 476 points. At the close of trading, the benchmark KSE-100 index posted a decline of 312.77 points, or -0.26%, and settled at 119,649.14. "Stocks closed lower amid dismal data of RDA inflows that decreased 25% MoM to $177 million and a lower current account surplus of $12 million for April. Fears about the IMF-driven new tax measures in the federal budget for FY26 impacted sentiment," said Arif Habib Corp MD Ahsan Mehanti. "Falling global crude oil prices, concerns over a lower industrial base tariff reduction and government's claims of savings from the IPPs' revised contracts and the Senate's approval of the IMF-driven higher grid levy under the CPP Levy Bill 2025 played the role of catalysts in the bearish close." Arif Habib Limited (AHL) wrote in its daily commentary that despite a strong weekly performance, Friday's session saw mixed activity with 46 stocks advancing and 53 declining. Top contributors to the index included Engro Holdings (+0.96%), UBL (+0.65%) and Bank AL Habib (+1.01%) while FFC (-1.47%), Lucky Cement (-1.47%) and Mari Petroleum (-1.36%) weighed on the index. On the trade front, Pakistan has proposed a zero-tariff bilateral trade agreement with the United States, aiming to boost economic cooperation across key sectors. On the macroeconomic side, April's current account surplus came in at $12 million, sharply lower than $315 million in April 2024 and $1.2 billion in March 2025, reflecting pressure from rising imports and lower remittances, AHL added. Topline Securities' market review said that a range-bound session was observed at the exchange as the index traded between the intra-day high of +544 points and intra-day low of -421 points to finally settle at 119,649 (down 0.26%). The lacklustre activity could be attributed to a lack of triggers and investors' preference to remain on sidelines before the weekend after the index touched its higher-ever level. Top positive contribution to the index came from Engro Holdings, Systems Limited, Bank AL Habib, UBL and Bank Alfalah as they cumulatively contributed 271 points. On the other hand, top negative contributors were FFC, Lucky Cement, Mari Petroleum, OGDC, PSO and Engro Fertilisers as they pulled the index down by 476 points, it said. Topline pointed out that investor interest was observed in the engineering sector in the second half, where the heavily import-dependent sector gained ground, largely on news that the prime minister had given directives for abolishing the additional customs duty and the regulatory duty over the next four to five years. Also, the PM has approved a proposal to cap customs duty at a maximum of 15%. Overall trading volumes were recorded at 572.3 million shares compared with the previous tally of 699 million. The value of shares traded during the day was Rs29.03 billion. Shares of 465 companies were traded. Of these, 206 stocks closed higher, 209 fell and 50 remained unchanged. At-Tahur Ltd was the volume leader with trading in 44.6 million shares, gaining Rs0.51 to close at Rs49.83. It was followed by Cnergyico PK with 32.3 million shares, losing Rs0.17 to close at Rs7.68 and Lotte Chemical with 28.6 million shares, gaining Rs1.29 to close at Rs20.98. During the day, foreign investors sold shares worth Rs165 million, according to the NCCPL.
Express Tribune
14-05-2025
- Business
- Express Tribune
PSX loses earlier gains on profit-taking
Listen to article Trading activity remained volatile at the Pakistan Stock Exchange (PSX) on Wednesday, which closed slightly lower, as a mix of investor optimism and caution prevailed. After two days of sharp gains, including a record surge of over 10,000 points on Monday, the market saw mixed signals, driven by pre-budget uncertainty, sector-specific headwinds and profit-taking in different stocks. Earlier, trading opened on a positive note, buoyed by the strength in select blue chips. However, selling pressure emerged in the second half, when investors opted to book profit. The KSE-100 index, which continuously fluctuated throughout the day, hit the intra-day high of 119,461 points and the low of 118,149. Fertiliser, cement, banking and oil and gas sectors extended key support to the index gains. On the other side, a 10% month-on-month decline in car sales for April impacted investor sentiment while reports of stricter tax regulations for cement distributors weighed on construction-related stocks. On the macro front, investor confidence got a lift from two significant developments. The International Monetary Fund (IMF) disbursed SDR 760 million ($1.023 billion) to the State Bank of Pakistan (SBP) under the Extended Fund Facility (EFF), which would be reflected in foreign currency reserves by May 16, and the MSCI's May 2025 review added three Pakistani companies namely DG Khan Cement, Maple Leaf Cement and Fauji Cement to its Frontier Markets Index, increasing the number of Pakistani firms to 26. Arif Habib Corp MD Ahsan Mehanti wrote "stocks closed flat amid uncertainty ahead of the federal budget for FY26." Dismal car sales, which showed a 10% month-on-month decline in April, along with concerns over extensive tax regulations targeting cement distributors and rupee fluctuation played the role of catalysts in bearish close at the PSX, he added. At the end of trading, the benchmark KSE-100 index posted a marginal loss of 39.36 points, or 0.03%, and settled at 118,536.53. Topline Securities wrote in its review that after two consecutive sessions of a powerful bull-run, the bourse witnessed a hot-and-cold trading day, marked by heightened volatility and strategic profit-taking. There was a tug of war between the gainers and losers. On the upside, heavyweights such as Engro Holdings, Fauji Fertiliser, Meezan Bank and United Bank led the charge, adding 470 points to the index. However, the rally lost some steam as Oil and Gas Development Company, MCB Bank, Bank AL Habib and Mari Petroleum dragged the index down by 354 points, added Topline. Arif Habib Limited (AHL) noted that stocks closed flat following a sharp two-day rally that had lifted the benchmark index substantially. Some 42 shares closed in the green while 54 remained in the red. Engro Holdings (+3.67%), Fauji Fertiliser (+0.97%) and United Bank (+0.92%) contributed the most to index gains, it said. JS Global analyst Muhammad Hasan Ather observed that IMF-Pakistan talks, focusing on budgetary measures and reforms, kept sentiment cautious, which resulted in selective profit-taking. Moving forward, the market direction depended on IMF negotiations, fiscal clarity and economic policy shifts. While a favourable outcome could support further upside, any uncertainty may trigger volatility, Ather anticipated. Overall trading volumes decreased to 609.1 million shares compared with Tuesday's tally of 684.3 million. The value of shares traded during the day stood at Rs41.9 billion. Shares of 451 companies were traded. Of these, 207 stocks closed higher, 191 fell and 53 remained unchanged. At-Tahur Limited was the volume leader with trading in 38.8 million shares, rising Rs4.08 to close at Rs44.84. It was followed by Fauji Cement with 36.2 million shares, gaining Rs0.33 to close at Rs47.86 and Sui Southern Gas Company with 32.4 million shares, higher by Rs3.28 to close at Rs36.07. During the day, foreign investors sold shares worth Rs1.79 billion, the National Clearing Company reported.
Express Tribune
29-04-2025
- Business
- Express Tribune
IMF optimism, easing tension lift PSX
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 Stocks rallied on Tuesday at the Pakistan Stock Exchange (PSX), reversing early losses to close significantly higher amid renewed investor optimism. The positive momentum was driven by reports of an upcoming IMF Executive Board meeting to discuss critical loan disbursements, alongside easing regional tensions and anticipated policy support. Ahsan Mehanti of Arif Habib Corp remarked that stocks turned bullish following reports that the IMF Executive Board will meet on May 9 to discuss the Staff Level Agreement (SLA) for the new $1.3 billion Resilience and Sustainability Facility (RSF), as well as the first review of the US$7 billion External Fund Facility (EFF) for approval of a US$1 billion disbursement. He added that easing political noise, alongside the US, China, and Turkey's urge to exercise restraint over Pak-India tensions, and expectations of policy easing, played a catalyst role in the bullish close at the PSX. At the close of trading, the benchmark KSE-100 index recorded an increase of 808.28 points, or 0.71%, and settled at 114,872.18. In its market review, Topline Securities reported that the benchmark KSE-100 index saw significant ups and downs during today's session. It dropped sharply by 1,128 points early in the day due to selling pressure, especially from leveraged investors. However, the market showed a strong recovery in the second half, ending the session at 114,872 points. Market sentiment improved as margin-related selling eased and investors began to buy quality stocks at lower levels, added Topline. It added that the recovery was mainly supported by key stocks like Engro Holdings, Mari Petroleum, Systems Limited, MCB Bank, and Sui Northern Gas Pipelines. These names alone contributed around 760 points to the overall index gains, showing their strong impact on market movement. Investor activity remained healthy, with a total of 408 million shares traded and a market turnover of Rs29 billion, mentioned the brokerage. In its commentary, Arif Habib Limited (AHL) stated that the market bounced once it surpassed 13,700 points, to gain 0.71% day-on-day. Some 60 shares rose while 34 fell, with Engro Holdings (+6.08%), Mari Petroleum (+3.82%) and Systems Limited (+3.7%) contributing the most to index gains. On the flip side, Lucky Cement (-2.71%), UBL (-1.07%) and Pakistan Petroleum Limited (-1.97%) were the biggest index drags, it observed. Pakistan Petroleum Limited (-1.97%) announced 9MFY25 earnings per share (EPS) of Rs26.72, representing a 25% year-on-year (YoY) decrease and DPS of Rs5.0, coming in below expectations. The Hub Power Company (-0.54%) also announced 9MFY25 EPS of Rs26.4, a 31% decrease YoY and DPS of Rs5.0 (already paid). No payout was a surprise in 3Q, remarked AHL. Air Link Communication Limited and Pakistan State Oil (PSO) also announced 9MFY25 financial results, with Air Link's 9MFY25 EPS Rs7.32, a 6% YoY decrease, below expectations. PSO's 9MFY25 EPS amounted to Rs32.52, an increase of 14% YoY, slightly below expectations, noted the brokerage. It added that upward moves continue to be seen as a counter-trend, with a prevailing bias to the downside. JS Global analyst Muhammad Hasan Ather noted that the KSE-100 Index staged a strong recovery by the close. The market initially fell over 700 points due to profit-taking and cautious investor sentiment but rebounded sharply on value-buying in key heavyweight sectors. Overall trading volumes decreased to 409.9 million shares compared with Monday's tally of 423.9 million. Shares of 445 companies were traded. Of these, 211 stocks closed higher, 183 fell and 51 remained unchanged. WorldCall Telecom was the volume leader with trading in 29.5 million shares, remaining stable to close at Rs1.26. It was followed by Cnergyico PK with trading in 14.8 million shares, gaining Rs0.27 to close at Rs7.81, and At-Tahur Limited with 14.8 million shares, falling Rs7.09 to close at Rs70.98. During the day, foreign investors sold shares worth Rs506.4 million, the National Clearing Company of Pakistan Limited (NCCPL) reported.
