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Express Tribune
3 days ago
- Business
- Express Tribune
SBP injects Rs1.15tr to stabilise markets
Listen to article The State Bank of Pakistan (SBP) conducted a major liquidity injection on Friday, deploying a total of Rs1.148 trillion into the banking system through a mix of conventional and Shariah-compliant open market operations (OMOs). Under the conventional reverse repo facility, SBP injected Rs970 billion, including Rs250 billion for a 6-day tenor at 11.10% and Rs720 billion (partially accepted) for a 14-day tenor at 11.08%. Simultaneously, the Shariah-compliant Mudarabah OMO contributed Rs178 billion, split almost evenly between 6-day and 14-day tenors, both priced at 11.10%. This Rs1.15 trillion operation is among the largest single-day liquidity injections this year, signalling the SBP's proactive approach to maintaining stability in the interbank market amid tight liquidity conditions. Meanwhile, the Pakistani rupee posted a marginal gain against the US dollar in the interbank market, appreciating by 0.02% on Friday. By the end of the trading session, the local currency closed at 282.02, up by five paisas from Thursday's closing rate of 282.07. According to Ismail Iqbal Securities, the rupee has depreciated by 1.23% on a calendar year-to-date (CYTD) basis and by 1.30% on a fiscal year-to-date (FYTD) basis. On the commodities front, gold prices in Pakistan declined on Friday, reflecting losses in the international market. The fall came as the US dollar gained strength and investors responded to recent tariff announcements. However, a softer US inflation report sustained hopes of a possible interest rate cut. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold dropped by Rs700 per tola, settling at Rs348,600, while the rate for 10 grams decreased by Rs599 to Rs298,868. Adnan Agar, Director at Interactive Commodities, said the market remains range-bound. "Gold hit a high of $3,322 and is trading around $3,290, with strong support at $3,260," he noted, adding that, "Unless the price breaks above $3,340$3,350, downward pressure is likely to continue."
Business Recorder
7 days ago
- Business
- Business Recorder
KSE-100 Index ends flat with over 100 points gain
The Pakistan Stock Exchange (PSX) closed relatively flat as investors remained cautious ahead of the FY26 budget, with the benchmark KSE-100 Index settling with a gain of over 100 points on Tuesday. At close, the benchmark index settled at 118,332.90, an increase of 111.78 points or 0.09%. 'A wait-and-see approach dominated sentiment, with participants largely staying on the sidelines in the absence of clear market moving triggers,' said Ismail Iqbal Securities. On Monday, the KSE-100 index fell sharply as investors reacted to the postponed budget and uncertainty over the IMF's approval of the circular debt plan. The benchmark index dropped by 881.55 points, or 0.74%, settling at 118,221 points. Internationally, the Asian shares eased on Tuesday, though US futures rose after President Donald Trump delayed his threatened 50% duties on European Union shipments, while the US dollar was headed for a fifth straight monthly loss. In Japan, yields on super-long government bonds fell early in the session, retreating from their all-time highs in the wake of last week's heavy selloff in the bonds. Markets in the US were closed on Monday for a holiday, making for thin overnight trading conditions and leaving investors latching on to lingering optimism from Trump's U-turn on his threat to impose 50% tariffs on imports from the EU next month, restoring a July 9 deadline. Nasdaq futures were up 1.26% in Asia while S&P 500 futures similarly rose 1.11%. FTSE futures advanced 0.94%. UK markets were also closed on Monday. Results from Nvidia are due on Wednesday, where the AI darling is expected to report a 65.9% jump in first-quarter revenue. Elsewhere, MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.17%, while Japan's Nikkei similarly fell 0.15%. China's CSI300 blue-chip index edged 0.06% lower while the Shanghai Composite Index was little changed. Hong Kong's Hang Seng Index dipped 0.1%. Focus for investors this week will also be on speeches from a slew of Federal Reserve policymakers and Friday's US core PCE price index, for clues on the outlook for US rates.
Express Tribune
26-05-2025
- Business
- Express Tribune
OPEC+ oil output rise may aid Pakistan
While the Omicron coronavirus variant is rapidly taking hold, demand-side concerns are easing amid rising evidence that it is less severe than previous variants.. PHOTO: REUTERS OPEC Plus' anticipated decision to raise oil production by 411,000 barrels per day starting in July could provide Pakistan with much-needed macroeconomic relief, carrying significant implications for the country's external account, inflation trajectory, and energy sector stability. Sources close to the group indicate that this larger-than-expected output hike may be part of a broader strategy to restore as much as 2.2 million barrels per day to the market by November 2025. According to Ismail Iqbal Securities, the move is widely seen as an attemptled particularly by Saudi Arabiato regain lost market share and pressure high-cost producers out of the market. The oil producers are expected to approve a hike more than three times the previously agreed 137,000 bpd at their upcoming meeting on June 1. If implemented, the decision is likely to exert downward pressure on already-struggling global crude oil prices. This would benefit oil-importing economies such as Pakistan, which continues to grapple with elevated energy costs and persistent trade and fiscal deficits. Pakistan imports around 21 million tonnes of crude and petroleum products annually. In the first ten months of FY25, its energy import bill surged to $12.7 billionnearly 26% of the total import bill. With Brent crude averaging around $74 per barrel so far this fiscal year, a drop in global prices following the OPEC+ hike could provide meaningful financial relief. Insight Securities estimates that if Brent oil falls to $65 per barrel, Pakistan could save up to $1.8 billion on crude imports, with an additional $500 million in savings on RLNG imports. Pakistan imported $2.9 billion worth of RLNG during the same period, and because its price is indexed to global crude benchmarks, any decline in oil prices translates directly into reduced RLNG costs. These savings would ease pressure on Pakistan's current account, improve foreign exchange reserves, and reduce the need for immediate external financing. Lower oil prices would also aid Pakistan's fiscal goals. The government recently increased the petroleum development levy (PDL) by Rs18/litre to finance tariff differential subsidies under the TDS scheme. With a PDL target of Rs100/litre and a projected 10% increase in fuel consumption, authorities could generate up to Rs2 trillion in FY26without raising retail prices if global oil prices fall. In the domestic energy sector, a reduction in RLNG prices could lower electricity generation costs and reduce circular debt. This would alleviate financial strain on power utilities and cut the burden of energy subsidies. Gas distributors such as SNGP and SSGC could also benefit from improved cost recovery and liquidity, enabling timely payments to companies like OGDC and PPL. Additionally, a decline below the $75/bbl base case assumed by OGRA could result in full cost recovery for gas utilities, enhancing their profitability. The anticipated price drop could boost investor sentiment, particularly in the power, chemicals, and textile sectors, supporting the KSE-100 index. However, risks remain from potential new taxes in the upcoming budget and political resistance to high petroleum levies.
Business Recorder
21-05-2025
- Business
- Business Recorder
Buying rally at PSX, KSE-100 settles with over 950 points gain
Buying momentum returned to the Pakistan Stock Exchange (PSX) on Wednesday, with the benchmark KSE-100 Index closing the day with a gain of over 950 points. Positivity was observed throughout the trading session at the bourse, pulling the KSE-100 to an intra-day high of 120,106.21. At close, the benchmark index settled at 119,931.45, a gain of 960.33 points or 0.81%. 'Investors remained active ahead of the FY26 budget, strategically realigning portfolios in anticipation of key fiscal measures,' said Ismail Iqbal Securities, in its commentary. On Tuesday, PSX witnessed a negative session, as its benchmark KSE-100 Index closed lower by 700 points at 118,971.12, amid concerns related to the upcoming budget for the financial year 2025-26. Internationally, Asian equities edged higher on Wednesday, with risk appetite contained by elevated bond yields as investors remained nervous about the fiscal outlook of major developed economies and the lack of progress on fresh trade deals. Crude prices rose more than $1 a barrel after a CNN report said that Israel was preparing a strike on Iranian nuclear facilities, raising supply concerns out of the key Middle East producing region and bringing geopolitical concerns back into focus. All eyes are also on the Japanese bond markets, a day after yields on super-long tenors surged to record highs on worries about demand for the country's debt after a weak 20-year auction. In early trading on Wednesday, the yield on 20-year bonds edged up 2 basis points, while those on the 30-year JGB slipped 1.5 bps. In stocks, China's blue-chip index was muted in early trading, while Hong Kong's Hang Seng Index rose 0.58%. China said it could take legal action against any individual or organisation assisting or implementing US measures that advise companies against using advanced semiconductors from China. The MSCI's broadest index of Asia-Pacific shares outside Japan crept up 0.5%, while Japan's Nikkei was down 0.18%.
Hans India
30-04-2025
- Business
- Hans India
Pakistan Stock Exchange witnesses sharp decline amid growing tensions at LoC
Karachi: The Pakistan Stock Exchange (PSX) plunged sharply on Wednesday amid rising tensions and fears of war against India with the benchmark KSE-100 Index suffering a major decline of over 2.2 per cent during the day's trading. PSX shed at least 2529.39 points during the intra-day trading with investors reacting aggressively to weak market cues and economic anxieties amid rising geopolitical tensions. KSE-100 index was trading at 111,699.59, a major downfall from the previous day's close at 114,872.18 while PSX remained down by at least 806.06 points with a sustained selling pressure throughout the trading day. "Traders have noted cautious sentiments amid prevailing political and fiscal uncertainty," said Ahfaz Mustafa, CEO, Ismail Iqbal Securities. "The market is reacting to the statement by the ministers that the next 24 to 36 hours could see serious actions from India. This is causing people to flee to safety and exit the equities for the time being," he added. The market's negative sentiment has been triggered by the post-midnight televised statement made by Pakistan's Information Minister Attaullah Tarar in which he stated that Islamabad has credible intelligence about New Delhi's plan to carry out military strikes in Pakistan in response to the Pahalgam attack. The ongoing escalation has also prompted global powers to intervene and establish multi-level contacts with both countries, urging both nuclear-powered neighbours to resolve the issues through dialogue. Pakistan has offered to participate in a third-party neutral and credible investigation into the Pahalgam incident, claiming that if such an investigation is initiated, Islamabad would also present what it claims as irrefutable evidences of India's alleged involvement in the Jaffar Express terror attack and other incidents of terror in Pakistan.
