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Express Tribune
2 days 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.
Express Tribune
3 days 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
26-05-2025
- Business
- Express Tribune
PSX closes in the red over budget caution
The Pakistan Stock Exchange (PSX) started the week on a bearish note on Monday as the KSE-100 index fell 882 points over investor caution ahead of the federal budget for fiscal year 2025-26, which has been delayed to June 10. Additionally, the delay in International Monetary Fund's (IMF) approval of Pakistan's circular debt resolution plan further dampened market sentiment. However, trading activity remained robust, with volumes standing at 636 million shares and traded value at Rs18.6 billion. According to Ahsan Mehanti of Arif Habib Corp, stocks closed lower amid pressure in the pre-budget session. Reports of higher petroleum levies and concerns over the pending IMF approval of the circular debt resolution plan alongside delay in federal budget, which will now be presented on June 10, impacted market sentiment. Mehanti added that rupee depreciation and geopolitical tensions also played a role in bearish activity at the PSX. At the end of trading, the benchmark KSE-100 index recorded a decrease of 881.55 points, or 0.74%, and settled at 118,221.12. In its review, Topline Securities remarked that the bourse experienced profit-taking as uncertainty continued to weigh on investor sentiment. The KSE-100 index shed 882 points and closed at 118,221, after touching the intra-day low of 952 points. The bearish trend was primarily driven by concerns over delay in the federal budget announcement and the lack of clarity about the IMF conditions tied to it. In the absence of positive triggers, investors chose to trim their positions and adopt a cautious stance, it said. K-Electric led the volumes chart with 247 million shares traded, closing at its upper circuit, following news that the company had secured a dollar-linked tariff for its transmission and distribution business. Energy stocks came under pressure amid rumours of a potential delay in the clearance of circular debt, with Pakistan Petroleum Limited (PPL), Oil and Gas Development Company (OGDC) and Pakistan State Oil (PSO) emerging as major losers. Engro Holdings, Systems Limited, PSO, Fauji Fertiliser Company and OGDC erased 452 points from the index, Topline added. In its commentary, Arif Habib Limited (AHL) noted that the week started off on a negative note, with the KSE-100 index falling towards the 118,000-point range. Some 30 shares rose while 66 fell. K-Electric (+21.19%), Pakistan Services Limited (+8%) and Attock Refinery (+4.03%) contributed the most to index gains while Engro Holdings (-1.82%), Systems Limited (-3%) and PSO (-3.46%) were the biggest drags, AHL said.0 It pointed out that the National Electric Power Regulatory Authority (Nepra) had approved K-Electric's multi-year distribution tariff for the period FY24 to FY30. The company had proposed a seven-year tariff control period to facilitate long-term investment. For FY24, the average distribution tariff has been set at Rs3.31 per kilowatt-hour (kWh) while the use-of-system charge has been fixed at Rs1,348.66/kW per month. "The KSE-100 is declining into support of the large price gap, from where the upside is expected to resume and breach 120,000 points," AHL stated. JS Global analyst Muhammad Hasan Ather commented that the KSE-100 fell 0.8% to the intra-day low of 118,150 as investor sentiment weakened due to the government's delay in presenting the federal budget and ongoing uncertainty surrounding the IMF's fiscal targets. "Market direction is contingent on clarity from the upcoming IMF discussions and the budget announcement; volatility is likely to persist until fiscal policy details are finalised," Ather said. Overall trading volumes increased to 635.5 million shares compared with Friday's tally of 338 million. Shares of 467 companies were traded. Of these, 188 stocks closed higher, 235 fell and 44 remained unchanged. K-Electric was the volume leader with trading in 246.9 million shares, gaining Rs1 to close at Rs5.72. It was followed by WorldCall Telecom with 36.7 million shares, gaining Rs0.02 to close at Rs1.27 and Telecard Limited with 30 million shares, gaining Rs0.93 to close at Rs8.22. During the day, foreign investors sold shares worth Rs90.4 million, the National Clearing Company reported.
Express Tribune
14-05-2025
- Business
- Express Tribune
PSX inches closer to record high
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) followed through on the previous day's record surge with notable gains on Tuesday, buoyed by investor optimism over the easing of war fears between Pakistan and India and assurances from the finance minister about the limited fiscal fallout from the geopolitical tensions. The KSE-100 index soared to an impressive intra-day high of 2,769 points, nearing its all-time high of 120,796, before settling with an increase of 1,278 points, or 1.09%, at 118,576. The recent approval of $2.4 billion in loans by the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) as well as a rally in crude oil prices and upbeat global equities lifted investor sentiment in the local market. Institutional buying, especially by the local mutual funds, and strong participation across key sectors propelled the benchmark index closer to the all-time high. Trading activity remained robust as 684 million shares were traded while the traded value came in at Rs53 billion – the highest in five months. Ahsan Mehanti of Arif Habib Corp stated that stocks closed higher as investors weighed ceasefire talks between Pakistan and India, which resulted in stability, and the finance minister's assurance of a minimal fiscal impact from the conflict. Rupee stability due to the easing of geopolitical tensions and the IMF loan approval, alongside upbeat global equities and a surge in crude oil prices, played the role of catalysts in bullish close at the PSX, added Mehanti. At the end of trading, the benchmark KSE-100 index recorded an increase of 1,278.16 points, or 1.09%, and settled at 118,575.89. In its market review, Topline Securities commented that the bullish momentum from the previous session was carried forward, fuelled by robust institutional buying, particularly from the local mutual funds. This positive sentiment propelled the benchmark index to an impressive intra-day high of 2,769 points, closing at a remarkable 118,576 with an increase of 1,278 points. Key drivers of the rally were heavyweight stocks such as Pakistan Petroleum, Oil and Gas Development Company, Lucky Cement, Pakistan State Oil (PSO) and Mari Petroleum, which contributed 1,177 points to the KSE-100 index, added Topline. In its commentary, Arif Habib Limited (AHL) stated that Monday's follow-through gains touched 120,000 points before coming off, but it still managed to advance 1.09% day-on-day. Some 51 shares rose while 45 fell, with Pakistan Petroleum (+10%), Oil and Gas Development Company (+7.71%) and Lucky Cement (+3.97%) contributing the most to index gains. On the flipside, Bank AL Habib (-2.58%), MCB Bank (-2.27%) and UBL (-1.23%) were the biggest index drags, noted AHL. It added that Lucky Core Industries had announced a 5:1 stock split. Moreover, the government was offering relief to industries and salaried individuals by reducing the super tax in the upcoming federal budget for 2025-26. "The key level to watch for sustainability is 120,000 points, while 113-115,000 points is a zone on watch as potential support," it commented. JS Global analyst Muhammad Hasan Ather remarked that the KSE-100 index surged 2.4% in intra-day trading, continuing its three-session rally and nearing the all-time high of 120,796. The bullish sentiment followed signs of de-escalation in India-Pakistan tensions, which previously weighed on the market. Additionally, the IMF's financial support, including a fresh $1.4 billion under the Resilience and Sustainability Facility, boosted investor confidence, he said. Going forward, stability in geopolitical conditions and continued structural reforms would be the key to sustaining the momentum, with traders eyeing a break above record levels, noted Ather. Overall trading volumes decreased to 684.3 million shares compared with Monday's tally of 732.9 million. Shares of 462 companies were traded. Of these, 221 stocks closed higher, 194 fell and 47 remained unchanged. WorldCall Telecom was the volume leader with trading in 41.7 million shares, falling Rs0.06 to close at Rs1.26. It was followed by Maple Leaf Cement with 41.1 million shares, gaining Rs6.27 to close at Rs75.92 and Sui Southern Gas Company with 35.8 million shares, gaining Rs2.33 to close at Rs32.79. During the day, foreign investors bought shares worth Rs386.8 million, the National Clearing Company reported.
Express Tribune
05-05-2025
- Business
- Express Tribune
PSX ends flat amid geopolitical jitters
The Pakistan Stock Exchange (PSX) witnessed a turbulent start to the week, with the benchmark KSE-100 Index closing nearly flat amid rising tensions with India and SBP policy uncertainty. The index dipped steeply in early trading, falling by 1,036 points. However, it made a strong recovery in the second half, mainly supported by the cement sector, while other stocks closed lower. The index closed the day down by only 11.70 points, or 0.01%, at 114,102.24. Analysts noted that while there may be a positive reaction to the 100 bps rate cut by the central bank, investors remained cautious given the prevailing geopolitical situation. Ahsan Mehanti of Arif Habib Corp remarked that stocks closed flat as investors remained cautious following the government's security measures to ban Indian trade ties and Indian flag carriers. SBP policy uncertainty and a slump in global crude oil prices contributed to the uncertainty, he noted. Rupee instability and fears over the outcome of heightened Pakistan-India border tensions played a catalyst role in the bearish close, added Mehanti. At the close of trading, the benchmark KSE-100 index recorded a decline of 11.70 points, or 0.01%, and settled at 114,102.24. In its market review, Topline Securities commented that the benchmark index was quite volatile during today's session, falling by 1,036 points in early trading. However, it made a strong recovery in the second half, mainly supported by the cement sector, as investors expected a possible rate cut in the monetary policy announcement made today. The index closed at 114,102 points, down just 12 points, or 0.01%. This recovery was mostly helped by key stocks like Fauji Fertiliser Company, DG Khan Cement Company, Fauji Cement Company, Pioneer Cement, and Maple Leaf Cement Company, which together added about 276 points to the index, as mentioned by Topline. Investor interest stayed strong, with 398 million shares traded and a total market turnover of Rs19 billion, it added. In its commentary, Arif Habib Limited (AHL) stated that the week started flat with cement stocks higher and other leading sectors lower. Some 56 shares rose while 42 fell, with Fauji Fertiliser Company (+1.29%), DG Khan Cement (+4.46%) and Fauji Cement Company (+2.79%) contributing the most to index gains. On the flip side, UBL (-2.17%), Oil and Gas Development Company (-1.49%) and Pakistan Petroleum Limited (-1.56%) were the biggest index drags, remarked AHL. It added that Moody's, in a recent report, stated that sustained tensions with India will weigh on Pakistan's growth, hamper the government's ongoing fiscal consolidation, impair access to external financing and pressure its FX reserves. Moreover, Pakistan plans to brief the UN Security Council about the recent tensions with India, highlighting the illegal steps taken by India to suspend the Indus Water Treaty, said AHL. The SBP cut the discount rate by -1% to +11%, and expects FX reserves to rise to US$14 billion by June, added the brokerage. JS Global analyst Muhammad Hasan Ather commented that the KSE-100 index started the week on a volatile note, as investors remained cautious due to ongoing tensions between Pakistan and India, while also awaiting the monetary policy announcement scheduled for later in the day. Overall trading volumes increased to 399.5 million shares compared with Friday's tally of 372.4 million. Shares of 452 companies were traded. Of these, 240 stocks closed higher, 155 fell, and 57 remained unchanged. Power Cement was the volume leader with trading in 41.3 million shares, gaining Rs0.98 to close at Rs14.92. It was followed by WorldCall Telecom with trading in 23.8 million shares, gaining Rs0.07 to close at Rs1.34 and Maple Leaf Cement Company with 23.6 million shares, gaining Rs2.16 to close at Rs71.60. During the day, foreign investors bought shares worth Rs128.9 million, the National Clearing Company of Pakistan Limited (NCCPL) reported.
