Latest news with #Moody's
Express Tribune
4 hours ago
- Business
- Express Tribune
Bulls stage comeback on earnings' prospects
Listen to article Pakistan Stock Exchange (PSX) rebounded on Wednesday as the KSE-100 index rose nearly 450 points over investor optimism about the ongoing corporate result season and the potential of ratings upgrade. The benchmark index ended trading at 136,379.97, reflecting a gain of 440.10 points, or 0.32%. It came following a dip of 563 points in the previous session. Market sentiment was buoyed by anticipation of robust company results and attractive dividend announcements. Adding to the upbeat tone was speculation about credit rating upgrade by Moody's owing to signs of economic stabilisation. Also, the government's commitment to holding constructive dialogue with the industrial sector on budgetary concerns was seen as a favourable step. Buying activity was mainly concentrated in sectors like fertiliser and cement, which helped drive the index to intra-day high of 137,232. It later came off highs but still closed the day with modest gains. According to Arif Habib Corp MD Ahsan Mehanti, stocks showed recovery in the earnings season rally on expectations of strong financial results, dividend payouts and potential Moody's upgrade amid strong economic recovery. Government's affirmation of negotiations with industries over budget issues, along with reports about finance minister presenting compelling evidence to Moody's for ratings boost, fuelled the bullish close at the PSX, he said. KTrade Securities, in its report, wrote that profit-taking persisted at the PSX as the index experienced another mixed session. Despite the cautious mood, the KSE-100 managed to go up by 440 points (+0.32%). The rally was driven primarily by strong performance by the fertiliser sector, with notable contributions coming from Fauji Fertiliser Company (FFC), Engro Holdings and Engro Fertilisers. Looking ahead, the broader uptrend appears intact, though investors remain cautious amid concerns over potential tariff adjustments and the earnings season, it said. Topline Securities observed that Wednesday's session saw consolidation, with the index oscillating between intra-day high of 137,232 and intra-day low of 135,543 as investors booked profits, particularly in banking stocks. Support mainly came from FFC, Engro Holdings, Engro Fertilisers, Pakistan Services and Attock Refinery, which added 1,160 points. On the downside, UBL, Meezan Bank and MCB Bank erased 443 points, Topline added. JS Global analyst Muhammad Hasan Ather commented that the KSE-100 index traded near record highs, rising 1,292 points to intra-day high of 137,232 amid strong corporate earnings and optimism about Moody's ratings upgrade. Investor sentiment was buoyed by positive economic signals, including the falling inflation, a stable rupee and rising foreign reserves. Finance Minister Muhammad Aurangzeb's meeting with Moody's further reinforced confidence, he said. Overall trading volumes stood at 705.9 million shares compared with Tuesday's tally of 879.1 million. The value of shares traded was Rs32.2 billion. Shares of 482 companies were traded. Of these, 223 stocks closed higher, 221 dropped and 38 remained unchanged. Pakistan International Bulk Terminal was the volume leader with trading in 90.7 million shares, rising Rs0.96 to close at Rs9.69. It was followed by First Dawood Properties with 40.6 million shares, gaining Rs1 to close at Rs6.11 and DH Partners with 37.2 million shares, up Rs1.82 to close at Rs42.06. Foreign investors sold shares worth Rs696.4 million, the National Clearing Company reported.
Business Recorder
8 hours ago
- Business
- Business Recorder
PARTLY FACETIOUS: ZULFIQAR AHMAD
x'There is briefing and then there is briefing.' 'What an inane observation.' 'Say what you will, there is a difference between who is giving the briefing and to whom.' 'So if I give you a briefing, then what?' 'Then I may decide to challenge you or if I have had a hard day I may not but that won't mean that I believe what you tell me.' 'Ah ha so there is another difference between briefings: my credibility.' 'Indeed so if you continue to….to.…' 'Present a biased view?' 'I am of the firm opinion that in the name of the All Holy Objectivity (AHO) we, in spite of constant exhortations by our professors to be unbiased, cannot but inject subjectivity into a briefing…and wait…I also believe that the range of subjectivity on a scale of 1 to 10 that we inject, is in direct proportion to our self-interest and….' 'Dear, dear, me; So, instead of AHO, we have AHS (All Holy Subjectivity).' 'Yes; so let's say our finance minister while briefing Moody's on the state of the economy….' 'My question is why did he focus on Moody's – the agency gave its last rating on 28 August 2024. Standard and Poor's on the other hand gave a rating as far back as 22 December 2022 so why not focus on them.' 'Well by that logic why not focus on Fitch, they upgraded us on 15 April this year so they are, how do I put it – more amenable to….' 'Can I say something?' 'If it's not positive then no because hopefulness is next to….' 'No, I just want to urge the finance minister to seek a rating which is investment grade. I mean, if he can manage that then he will go down in history as the only finance minister who managed to get investment grade rating. See, we have never ever had that rating by….' 'The Special Investment…..' 'Not yet, work is in progress.' 'Wasn't it established two years ago…' 'Back off you idiot. In economics, two years can be defined as short term.' 'So I wait for the medium term, which is what? Four years?' 'I hope you are not being facetious because if you are then let me brief you about …' 'I stand corrected.' Copyright Business Recorder, 2025
Express Tribune
15 hours ago
- Business
- Express Tribune
PSX sees modest gains as KSE-100 closes 440 points up
Segregation of client assets is critical as brokers have been penalised for using client money illegally. PHOTO: AFP The Pakistan Stock Exchange (PSX) witnessed another day of consolidation on Wednesday, with the benchmark KSE-100 index closing at 136,380 points, gaining 440 points or 0.32% after oscillating in both directions during the session. Early trade saw mild negativity, with the index hitting an intraday low of 135,543 points—down 397 points (0.29%)—amid profit-taking, noted Ali Najib, Deputy Head of Trading at Arif Habib Ltd. However, bargain hunters stepped in at the day's low, lifting sentiment and helping the market close in the green. Investor optimism was reinforced by Finance Minister Muhammad Aurangzeb's latest briefing to Moody's, where he highlighted key signs of economic recovery. These included easing inflation, a stable exchange rate, policy rate cuts, rising foreign exchange reserves—now above $14 billion—and strengthening remittance and export trends. These indicators have strengthened Pakistan's case for a potential rating upgrade in Moody's upcoming review. Market Snapshot – July 16, 2025 Unlock today's market moves and stay one step ahead! — PSX (@pakstockexgltd) July 16, 2025 Among the major positive contributors were fertiliser and energy stocks, with FFC, EngroH, EFERT, PSEL, and ATRL adding a combined 1,162 points to the index. Meanwhile, the banking sector weighed on performance, with UBL, MEBL, MCB, BAHL, and BAFL cumulatively knocking off 556 points due to persistent selling pressure. Overall market activity remained subdued, with total traded volume at 702 million shares and a turnover of Rs32 billion. PIBTL led the volumes chart with 90.7 million shares traded. The 135,000 level is expected to act as key support in the near term, underpinned by strong corporate earnings and steady foreign inflows, as noted by Ali Najib. A decisive breach could see the index test 132,000, where attractive valuations and expectations of further monetary easing may reignite investor interest and trigger fresh buying.
Business Wire
19 hours ago
- Business
- Business Wire
Moody's Corporation Elects Sumit Dhawan to Board of Directors
NEW YORK--(BUSINESS WIRE)--Moody's Corporation (NYSE: MCO) has elected Sumit Dhawan to the Company's Board of Directors, effective July 16, 2025. Mr. Dhawan will join the Board's Governance & Nominating and Compensation & Human Resources committees. With the election of Mr. Dhawan, Moody's Board will consist of ten directors. "We are pleased to welcome Sumit to our Board and benefit from his extensive experience leading prominent cybersecurity and cloud computing companies,' said Vincent Forlenza, Chairman of Moody's Corporation. "We look forward to his invaluable insights and strategic vision as we continue to strengthen Moody's offerings to meet evolving customer needs." Mr. Dhawan has over 25 years of experience building and leading security, cloud, and end- user computing businesses. Mr. Dhawan has been the CEO of Proofpoint, Inc., a cybersecurity and compliance company, since November 2023. Prior to that, he held several senior executive positions at VMware, Inc., a cloud software company, culminating with his role as President. Previously, he served as CEO of Instart, a technology company that delivered web application performance and security services. Mr. Dhawan holds an MBA from the Warrington College of Business at the University of Florida, an M.S. in Computer Science from the University of Minnesota, and a B.S. in Computer Science from the Indian Institute of Technology (IIT). ABOUT MOODY'S CORPORATION In a world shaped by increasingly interconnected risks, Moody's (NYSE:MCO) data, insights, and innovative technologies help customers develop a holistic view of their world and unlock opportunities. With a rich history of experience in global markets and a diverse workforce of approximately 16,000 across more than 40 countries, Moody's gives customers the comprehensive perspective needed to act with confidence and thrive.
Express Tribune
a day ago
- Business
- Express Tribune
Moody's questions missed tax target
Listen to article Moody's, a global credit rating agency, on Tuesday inquired about the implications of missing a key target of increasing the tax-to-GDP ratio to 10.6% in the last fiscal year, as Pakistan made an emphatic pitch for an upward revision in the current junk rating. The credit rating agency also asked about progress in trade talks with the United States and whether the central bank was still exercising any control over imports and the exchange rate market, according to officials privy to the meeting details. Moody's raised these questions during a session with Pakistan's Finance Minister Muhammad Aurangzeb. Minister of State for Finance Bilal Kayani and Governor State Bank of Pakistan Jameel Ahmad also attended the session, which would determine whether the rating agency would upgrade Pakistan in its next announcement. Pakistan's current Moody's rating is Caa2 with a positive outlook. This rating was upgraded from Caa3 with a stable outlook in August 2024. But it is still below the investment grade and hampers Pakistan's smooth entry in the international capital markets to raise debt. According to the officials, Moody's asked about the impact of missing the tax-to-GDP ratio in the last fiscal year on this fiscal year's targets. Aurangzeb said that the Federal Board of Revenue (FBR) would give a separate briefing to the rating agency for addressing any of its concerns, according to the officials. The FBR's tax-to-GDP ratio remained at a little over 10.2% as against the target of 10.6% after the FBR could pool only Rs11.745 trillion in taxes in the fiscal year 2024-25. The government missed the annual tax collection target by a margin of Rs1.225 trillion. After the meeting that Moody's team was provided with a comprehensive overview of Pakistan's reform journey, with a particular emphasis on improving the tax-to-GDP ratio through technology-driven tax administration reforms, digitisation of systems, and robust enforcement measures. The minister emphasised that under the direct oversight of the prime minister — who chairs regular meetings on tax reform — the government was implementing measures to expand the tax base, plug leakages, and enhance compliance. Aurangzeb noted that the Rs2 trillion revenue delta achieved this year had come through autonomous efforts, and the government was firmly committed to reaching a tax-to-GDP target of 13 to 13.5% in the next few years, according to the ministry. Moody's also asked about the details of the Pakistan-US trade talks but the government did not share any details except that the deal was expected soon. The sources said that the United States has asked for preferential trade treatment to which Pakistan has proposed to sign a pact. "Ongoing discussions with the United States on preferential tariff access were noted as making encouraging headway," the Ministry of Finance stated after the meeting. There were also questions about the average interest rate that the government used for allocating the Rs8.3 trillion for debt servicing for this fiscal year. Moody's was informed that a 12% average interest rate had been used for this fiscal year. Moody's asked about the movement in the exchange rate and any restrictions on imports. The central bank clarified that the exchange rate was market determined and there were no restrictions on imports. The rupee has again started coming under pressure and the grey market is resurfacing with a rate that is about Rs7 per dollar higher than the inter-bank rate, according to the exchange market dealers. According to the finance ministry, the Finance Division provided an in-depth briefing on Pakistan's macroeconomic outlook, reform agenda, and financial stability. "Looking ahead, the finance minister expressed optimism that the improving macroeconomic indicators and reform momentum would be positively acknowledged by rating agencies, further strengthening Pakistan's case to tap international markets and deepen its external sector stability," said the ministry. Aurangzeb and his team presented compelling evidence of macroeconomic recovery, including a sharp reduction in inflation, a cut in the policy rate, stabilisation of the exchange rate, a current account surplus, and a surge in foreign exchange reserves — crossing $14 billion by the end of June, stated the ministry. It added that the improvements in remittance inflows and export performance were also cited as signs of resilience and renewed investor confidence. During the session, the finance minister apprised the Moody's team of the significant strides Pakistan has made in stabilising its economy and laying the foundations for sustainable and inclusive growth, it added. He underlined the successful completion of the final International Monetary Fund (IMF) review under the Stand-By Arrangement, including the disbursement of the second tranche and progress under the Resilience and Sustainability Facility (RSF), as key milestones that have restored confidence in Pakistan's economic management. The minister highlighted a series of structural reforms undertaken by the government to anchor long-term stability. These included prudent fiscal measures in the recently announced budget, tariff and trade liberalisation geared towards export-led growth, and concerted efforts to rationalise expenditure. The meeting further outlined Pakistan's re-engagement with global financial markets, including the successful arrangement of $1 billion in commercial financing from the Middle Eastern region, plans for an inaugural Panda bond, and Pakistan's intent to explore the Eurobond and other international debt markets as credit ratings improve. The finance minister also addressed queries from the Moody's team and reiterated Pakistan's commitment to staying the course on macroeconomic reforms, including in areas of privatisation, restructuring of state-owned enterprises (SOEs), and right-sizing of government.
