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Express Tribune
24-05-2025
- Business
- Express Tribune
PSX swings on budget speculation
Shares of 362 companies were traded. At the end of the day, 212 stocks closed higher. PHOTO: FILE Listen to article The Pakistan Stock Exchange (PSX) remained under pressure throughout the outgoing week, with the benchmark KSE-100 index shedding 0.46% week-on-week (WoW) to close at 119,103 points, as investors adopted a cautious stance ahead of the federal budget for fiscal year 2025-26. Market sentiment was further influenced by the release of key macroeconomic indicators, including a modest GDP growth of 2.68% year-on-year (YoY) for FY25 and a notable 5.47% YoY surge in 4QFY25, as per the National Accounts Committee. On a day-on-day basis, the PSX began the week on Monday with mixed sentiment as investors traded cautiously over pre-budget uncertainty, a widening trade deficit and concerns about the proposed tax measures amounting to Rs700 billion. The KSE-100 index recorded an increase of 40.49 points and settled at 119,690. Next day, the bourse closed bearish as market participants were anticipating the parliamentary approval of IMF-driven tax reforms, including the phasing out of industrial incentives and the implementation of new tax levies on the agricultural sector. The index recorded a decrease of 719 points. On Wednesday, the market staged a robust rebound as the KSE-100 climbed over 950 points, driven by active investors, who were encouraged by pro-growth fiscal measures and realigned their portfolios ahead of budget presentation. The index recorded a notable increase of 960 points at 119,931. However, the PSX succumbed to profit-taking on Thursday, with the KSE-100 dropping 778 points. Finally, it wrapped up the week on a negative note with a loss of 50 points, weighed down by investor anxiety ahead of the federal budget and over the proposed IMF-backed tax measures targeting exporters and industrial sectors. "The market remained under pressure throughout the week as investors adopted a cautious stance ahead of the upcoming budget announcement," wrote Arif Habib Limited (AHL) in its weekly review. On the economic front, the National Accounts Committee released the latest GDP data, revealing a 2.68% YoY growth for FY25, with a 5.47% YoY growth in 4QFY25. Meanwhile, profit rates across various National Saving Schemes (NSS) were reduced up to 100 basis points, where the most notable cut was seen in the Savings Account as the return was lowered from 10.5% to 9.5%, AHL said. Additionally, power generation in April 2025 surged 22% YoY (the highest in 48 months) to 10,513 gigawatt hours (GWh). The State Bank's reserves rose $1.03 billion to $11.4 billion due to the loan tranche disbursement by the IMF. Overall, the KSE-100 remained negative with the index closing at 119,103 points, down 0.46% WoW. Sector-wise, the negative contribution came from cement (339 points), oil and gas exploration (268 points), fertiliser (222 points), chemical (62 points) and automobile assemblers (55 points). Meanwhile, the sectors that contributed positively were technology and communication (62 points), power generation and distribution (60 points), refinery (45 points) and textile composite (31 points). Stock-wise, the negative contributors were Lucky Cement (257 points), Fauji Fertiliser Company (237 points), Mari Petroleum (211 points), MCB Bank (131 points) and Pakistan Petroleum (75 points). Individually, the positive contribution came from NBP (127 points), Systems Limited (66 points), Bank AL Habib (65 points), Pakgen Power (56 points) and Attock Refinery (48 points). Foreigners' selling was witnessed during the week, which clocked in at $0.29 million compared to net selling of $9.13 million last week. Major selling was witnessed in banks ($1.09 million). Average volumes arrived at 492 million shares (down 25.4% WoW) while average traded value settled at $84.4 million (down 38.4%). Among other major news, more luxury items were set to attract sales tax in the budget and the government was expected to slap GST on petroleum products and increase the petroleum levy. Wadee Zaman of JS Global concurred, saying the KSE-100 index posted mixed trends during the outgoing week, reflecting a cautious investor sentiment ahead of the federal budget, and closed at 119,103 points, down 0.5% WoW. GDP growth for 3QFY25 stood at 2.4% while full-year FY25 growth was provisionally estimated at 2.68%, down from the previously projected 3.6%, he said. Meanwhile, Pakistan was negotiating with the UAE-based commercial banks to secure external financing of up to $350 million to help meet its external funding needs. Auto financing in April 2025 came in at Rs263 billion, up 12% YoY, marking the fifth consecutive month of YoY growth, Zaman added.
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.
Business Recorder
23-05-2025
- Business
- Business Recorder
KSE-100 rebounds after early fall
After a steep decline at the open, the Pakistan Stock Exchange's (PSX) benchmark KSE-100 Index recovered most of its losses but remained slightly in the red during the first half of trading on Friday. The index dropped more than 400 points at the start, hitting an intra-day low of 118,723.28. At 12pm, the benchmark index was hovering at 119,140.92, a decrease of 12.12 points or 0.01%. Selling pressure was observed in key sectors including automobile assemblers, commercial banks, oil and gas exploration, OMCs and power generation. Index-heavy stocks, including HUBCO, PSO, SSGC, MARI, OGDC, PPL, POL, UBL, and NBP, are traded in red. Analysts say investors are actively selling shares amid uncertainty about what the government will announce in the upcoming federal budget. On Thursday, the PSX closed lower as investors adopted a cautious stance amid uncertainty surrounding the outcome of IMF-driven new taxes in the upcoming budget. The benchmark KSE-100 Index lost 778 points or 0.65%, closing at 119,153 points. Internationally, Asian shares made some tentative gains on Friday as beaten-down Treasuries found buyers after US President Donald Trump's tax bill narrowly passed the lower house, although debt worries still lingered. Overnight, PMI data around the globe showed US business activity picked up pace in May, which helped Wall Street rise earlier in the session before running into selling pressures and closing the day largely flat. In contrast, disappointingly weak activity in Europe dragged shares there lower. Nasdaq futures and S&P 500 futures both were flat. The Republican-controlled US House voted by a slim margin to pass Trump's tax cut bill, which would fulfil many of his campaign pledges, but will increase the $36.2 trillion US debt pile by $3.8 trillion over the next decade. Treasury yields, especially at the longer-dated end, have climbed on worries about US fiscal health in the run-up to the passage of the bill. That was exacerbated by the decision from Moody's last week to downgrade the U.S. credit rating, citing rising debt. The 30-year bonds, however, did manage to find some buyers overnight, with prices now at some attractive levels. Their yields fell another 1 basis point to 5.037% on Friday, having dropped 4 bps to pull away from a 19-month top of 5.161% earlier in the session. The MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.1% on Friday, but for the week, it is still set for a loss of 0.4% after five weeks of gains. This is an intra-day update
Business Recorder
23-05-2025
- Business
- Business Recorder
Selling continues at PSX, KSE-100 sheds over 400 points
Volatility continued at the Pakistan Stock Exchange (PSX) on Friday, with the benchmark KSE-100 Index shedding over 400 points during the first half of the trading session. At 9:45am, the benchmark index was hovering at 118,742.59, a decrease of 410.45 points or 0.34%. Selling pressure was observed in key sectors including automobile assemblers, commercial banks, oil and gas exploration, OMCs and power generation. Index-heavy stocks, including HUBCO, PSO, SSGC, MARI, OGDC, PPL, POL, UBL, and NBP, are traded in red. Analysts say investors are actively selling shares amid uncertainty about what the government will announce in the upcoming federal budget. On Thursday, the PSX closed lower as investors adopted a cautious stance amid uncertainty surrounding the outcome of IMF-driven new taxes in the upcoming budget. The benchmark KSE-100 Index lost 778 points or 0.65%, closing at 119,153 points. Internationally, Asian shares made some tentative gains on Friday as beaten-down Treasuries found buyers after US President Donald Trump's tax bill narrowly passed the lower house, although debt worries still lingered. Overnight, PMI data around the globe showed US business activity picked up pace in May, which helped Wall Street rise earlier in the session before running into selling pressures and closing the day largely flat. In contrast, disappointingly weak activity in Europe dragged shares there lower. Nasdaq futures and S&P 500 futures both were flat. The Republican-controlled US House voted by a slim margin to pass Trump's tax cut bill, which would fulfil many of his campaign pledges, but will increase the $36.2 trillion US debt pile by $3.8 trillion over the next decade. Treasury yields, especially at the longer-dated end, have climbed on worries about US fiscal health in the run-up to the passage of the bill. That was exacerbated by the decision from Moody's last week to downgrade the U.S. credit rating, citing rising debt. The 30-year bonds, however, did manage to find some buyers overnight, with prices now at some attractive levels. Their yields fell another 1 basis point to 5.037% on Friday, having dropped 4 bps to pull away from a 19-month top of 5.161% earlier in the session. The MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.1% on Friday, but for the week, it is still set for a loss of 0.4% after five weeks of gains. This is an intra-day update
Express Tribune
23-05-2025
- Business
- Express Tribune
Stocks succumb to profit-taking
Listen to article The Pakistan Stock Exchange (PSX) succumbed to profit-taking on Thursday, with the KSE-100 index dropping nearly 800 points. The market faced challenges as investors weighed the looming uncertainty ahead of federal budget announcement. With the International Monetary Fund's (IMF) proposed tax measures targeting key sectors such as oil, fertiliser and automobile, there was an air of caution among traders. These proposals, coupled with economic concerns, prompted investors to take a step back and reassess their positions. Additionally, rupee depreciation intensified the pressure. As a result, stock selling in the latter part overwhelmed early gains, pushing the market into negative territory. Arif Habib Corp MD Ahsan Mehanti commented "stocks closed under pressure in the pre-budget session amid uncertainty about the outcome of IMF-driven tax measures proposed for oil, fertiliser and auto sectors in the FY26 budget." Additionally, security fears, tensions with India and rupee instability were the major catalysts for bearish close of the market, he noted. At the end of trading, the benchmark KSE-100 index registered a loss of 778.41 points, or 0.65%, and settled at 119,153.04. Topline Securities stated that the stock market remained in a consolidation mode, with the index fluctuating within a limited range. It posted the intra-day high of 768 points and low of 869 points, facing resistance near the 120,000 mark before closing at 119,153, down 778 points. The decline was largely attributed to falling global oil prices, which weighed heavily on oil-related stocks, Topline said. Arif Habib Limited (AHL) observed that the market continued to face supply surplus above the 120k level. Some 30 shares rose while 68 fell with Systems Limited (+5.39%), TPL REIT Fund-I (+6.23%) and Air Link Communication (+2.68%) contributing the most to index gains. On the other side, Engro Holdings (-3.01%), Lucky Cement (-3.1%) and Pakistan Petroleum (-2.83%) were the biggest drags. Among corporate announcements, AHL mentioned, Honda Atlas Cars (+1.93%) announced MY25 earnings per share (EPS) of Rs18.97, up 16% year-on-year (YoY), and a dividend per share of Rs8, which beat expectations. Its 4QMY25 EPS stood at Rs11.78, reflecting a 23% YoY increase. An IMF delegation, led by Director for the Middle East, North Africa and Central Asia Jihad Azour, met PM Shehbaz Sharif to discuss the ongoing IMF loan programme and economic reforms. By the close of the week, the index is poised to end down 0.4% week-on-week, though a finish above 120k would signal the strength ahead, AHL added. KTrade Securities stated in its market wrap that volatility persisted at the PSX amid pre-budget uncertainty, with the KSE-100 index falling 0.65%, or 778 points, to close at 119,153. Trading activity remained muted despite improving macroeconomic indicators. Investors are expected to stay cautious ahead of the FY26 federal budget, it predicted. JS Global analyst Mohammed Waqar Iqbal noted that the market opened on a positive note as the index hit the intra-day high at 120,699. However, the momentum faded, when investors opted for profit-taking at higher levels, dragging the index down to the intra-day low of 119,062 before closing at 119,153, down 778 points. Overall trading volumes decreased to 589.8 million shares compared with Wednesday's tally of 667.7 million. The value of shares traded during the day was Rs30.8 billion. Shares of 466 companies were traded. Of these, 195 stocks closed higher, 229 fell and 42 remained unchanged. K-Electric was the volume leader with trading in 42.8 million shares, losing Rs0.04 to close at Rs4.71. It was followed by Bank Makramah with 28.2 million shares, adding Rs0.34 to close at Rs3.77 and Ghani Global Holdings with 27.6 million shares, gaining Rs1.12 to close at Rs16.71. During the day, foreign investors bought shares worth Rs249.5 million, the National Clearing Company reported.
