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Express Tribune
5 days ago
- Business
- Express Tribune
Stocks surge on budget relief prospects
Listen to article The Pakistan Stock Exchange (PSX) closed the week on a bullish note on Friday, lifted by strong gains in blue-chip oil, banking and fertiliser stocks amid growing optimism about the upcoming federal budget measures. The benchmark KSE-100 index surged over 700 points. Analysts attributed the rally to investor hopes for pro-growth budgetary announcements, including some relief for oil refineries, real estate and agriculture sectors, along with a proposed 1.5% levy on imports aimed at supporting local industries and stabilising the rupee. Despite the upbeat close, the benchmark index remained shy of the 120,000 milestone, posting a 0.5% weekly gain. "Stocks closed bullish, led by blue-chip shares of oil, banking and fertiliser sectors amid hopes for positive federal budget announcements," said Arif Habib Corp Managing Director Ahsan Mehanti. "Budgetary relief for oil refineries, real estate and agri-sector, a proposed 1.5% tax on imports to support industries and rupee stability played the role of catalysts in bullish close at the PSX," he added. At the end of trading, the benchmark KSE-100 index recorded a rise of 719.69 points, or 0.60%, settling at 119,691.09. Arif Habib Limited (AHL) wrote that the PSX closed the week with a 0.5% gain, although the index remained below the 120,000 mark. On Friday, 58 stocks advanced while 41 declined. Key contributors to the gains included Fauji Fertiliser Company (FFC, +2.24%), Meezan Bank (+4.4%) and Hubco (+1.6%) while TPL REIT Fund 1 (-7.63%), Pakistan Petroleum (-1.03%) and Pakistan Oilfields (-1.31%) were the major drags. Among macro developments, Azerbaijan announced a $2 billion investment package for Pakistan during a trilateral summit with Turkey. Meanwhile, the State Bank purchased $5.9 billion from the currency market since June 2024 to strengthen its foreign exchange reserves. On the fiscal front, the FBR is proposing higher withholding tax rates for vehicles with engine capacities above 1,300cc in the upcoming budget. In the corporate sector, Pharaon Investment Group's potential divestment of ACPL is drawing interest from competitors including Cherat Cement and Bestway Group, AHL added. Topline Securities, in its daily review, wrote that continuing its previous day's momentum, the KSE-100 index largely traded in the positive zone and closed at 119,691, up 0.60%. The top positive contribution to the index came from FFC, Meezan Bank, Hubco, Pakgen Power, Engro Holdings and MCB Bank as they cumulatively contributed 668 points. Traded value-wise, Attock Refinery (Rs1.66 billion), DG Khan Cement (Rs878 million), Hubco (Rs807 million), FFC (Rs708 million), Meezan Bank (Rs661 million) and Mari Petroleum (Rs607 million) dominated the trading activity, Topline said. Muhammad Hasan Ather of JS Global said the KSE-100 index extended its bullish momentum, climbing 720 points to close at 119,691. The rally was driven by strong investor sentiment amid declining inflation, current account surplus and Fitch's upgrade of Pakistan's credit rating to "B-". Robust activity in banking, energy and cement sectors further buoyed the sentiment. With over 1,358 points added in two sessions, the momentum suggests a continued upside, contingent on sustained macroeconomic stability and clarity on political and external financing developments, he said. Overall trading volumes stood at 580.3 million shares, significantly lower than the previous session's 741.7 million. The total traded value was Rs22.7 billion, down from Rs23.9 billion in the previous session. A total of 474 companies were traded, out of which 259 stocks closed higher, 161 declined and 54 remained unchanged. WorldCall Telecom led the volumes chart with 79.7 million shares, losing Rs0.06 to close at Rs1.37. K-Electric followed with 47.7 million shares, losing Rs0.20 to settle at Rs5.32. Cnergyico PK saw trading in 35.8 million shares, gaining Rs0.07 to close at Rs7.86. Foreign investors sold shares worth Rs612.5 million, the National Clearing Company reported.
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
06-05-2025
- Business
- Express Tribune
PSX ignores rate cut positivity
Listen to article The Pakistan Stock Exchange (PSX) closed in negative territory on Tuesday as investor sentiment weakened despite a policy rate cut by the State Bank of Pakistan (SBP). The move, aimed at easing monetary conditions, failed to satisfy market expectations for a deeper reduction, especially in light of rising geopolitical tensions and global uncertainty. The index opened on a strong note, however, the rally proved short-lived as markets reversed course following mounting concerns over India-Pakistan tensions and international risks tied to trade tariffs and regional instability. Investor caution was further exacerbated by a statement from Moody's, which warned that sustained political tensions between Pakistan and India could undermine the country's economic stability. The credit rating agency highlighted risks to Pakistan's external financing needs and foreign reserves, particularly in the context of ongoing Kashmir dispute. According to Arif Habib Corp MD Ahsan Mehanti, stocks closed lower as the SBP's policy easing, amid India tensions and global uncertainty over trade tariffs and geopolitical risks, failed to satisfy industry calls for a deeper rate cut. Besides, Moody's caution over the possibility of Pakistan-India tensions derailing economic stability may risk external financing and foreign reserves were the catalysts for the bearish close at the PSX. At the close of trading, the benchmark KSE-100 index recorded a substantial decline of 533.73 points, or 0.47%, and settled at 113,568.51. Topline Securities wrote in its review that though trading opened on a buoyant note following much-anticipated 100basis points policy rate cut enthusiasm that pushed benchmark index to an intraday high of 990 points, the celebrations were short-lived. As the day progressed, profit-taking emerged across key sectors, gradually eroding the morning gains. It attributed reversal in market trajectory to Pak-India tensions. Key stocks that provided upward support included Pakistan Petroleum Limited, Oil and Gas Development Company, Pakistan State Oil, United Bank, and Systems Limited, which cumulatively contributed 275 points to the index. On the other hand, notable laggards were Lucky Cement, Habib Metropolitan Bank, The Hub Power Company, Engro Fertiliser, and Bank Al-Habib collectively shaved 427 points, added Topline. In its commentary, Arif Habib Limited (AHL) observed that early gains failed to hold at the 115,000 point level. Some 39 shares rose while 58 fell, with Pakistan Petroleum Limited (+2.24%), Oil and Gas Development Company (+1.35%) and PSO (+2.07%) contributing the most to index gains. The AHL noted that the larger than expected rate cut by the SBP failed to excite the market, with Pak-India tensions still a strong hindrance to upside. Echoing similar view, JS Global Analyst Muhammad Hasan Ather in his comment wrote that today's rally was fuelled by the SBP's 100 basis point rate cut to 11%. He anticipated lower borrowing costs may support corporate earnings, particularly in banking, cement, and auto sectors. Overall trading volumes increased to 420.6 million shares compared with Monday's tally of 399.5 million. Shares of 453 companies were traded. Of these, 188 stocks closed higher, 218 fell and 47 remained unchanged. Sui Southern Gas Company was the volume leader with trading in 54.3 million shares, falling Rs3.95 to close at Rs36.08. It was followed by K-Electric Limited with trading in 42.3 million shares, gaining Rs0.22 to close at Rs4.38 and Dewan Cement Limited with 26.2 million shares, falling Rs0.29 to close at Rs10.46. During the day, foreign investors bought shares worth 263 million, the National Clearing Company of Pakistan Limited (NCCPL) reported
Indian Express
24-04-2025
- Business
- Indian Express
Pakistan Stock Exchange tanks over 2,000 points after India's strong response to Pahalgam terror attack
Pakistan Stock Exchange's (PSX) benchmark KSE-100 index tanked 2,111 points, or 1.80 per cent at 1,15,115 on Thursday, a day after India's strong diplomatic and strategic response on the terror attack in Jammu and Kashmir's Pahalgam area. On a weekly basis, the KSE-100 was down 1.31 per cent, according to Trading Economics data. The KSE-100 lost 1,204 points on Wednesday owing to a shift in investors' stance towards caution amid geopolitical tensions, according to a note by Pakistan-based brokerage Topline Securities' sales desk. To be sure, a key factor behind the decline on Wednesday was the IMF's announcement of a revised GDP forecast for Pakistan, The News Pakistan reported citing Ahsan Mehanti, analyst at Pakistan-based brokerage firm Arif Habib. JS Global analyst Muhammad Hasan Ather however stated that a potential easing on the monetary policy by Pakistan's central bank may provide support to key indices, The News Pakistan reported. A poll by Topline Securities showed 69 per cent of respondents expected a rate cut by the State Bank of Pakistan in its next monetary policy meeting scheduled on May 5, 2025. In its previous meeting, SBP's monetary policy committee decided to maintain the policy rate at 12 per cent. The International Monetary Fund on Tuesday revised its growth outlook for Pakistan to 2.6 per cent in April from 3 per cent in January. The Bretton Woods institution projected Pakistan's inflation rate at 5.1 per cent for FY25 and 7.7 per cent in FY26. Steps taken by India after Pahalgam attack India's Cabinet Committee on Security, chaired by Prime Minister Narendra Modi took several important decisions in response to the Pahalgam terror attack in which 26 people were killed. Foreign Secretary Vikram Misri announced that Pakistan nationals will be bared from travelling to India using SAARC Exemption Scheme visas. India declared defence advisors posted in the Pakistan High Commission to be persona non grata, giving them a week's notice to leave the country. India has also decided to withdraw defence advisors posted in the Indian embassy in Islamabad. In a move that is expected to direct a blow to Pakistan's agriculture sector, India also decided to keep the Indus Water Treaty in abeyance. In a trade-related move, India has closed the integrated check post at Attari-Wagah border near Amritsar, Punjab. On Thursday, India revoked all visas issued, including medical visas, issued to Pakistani nationals. How KSE-100 responded to Uri, Pulwama terror attacks and Balakot air strike The Pulwama terror attack on a CRPF convoy in Jammu and Kashmir on February 2019, in which 40 jawans were killed, saw the KSE-100 decline 0.09 per cent at 40,506.98 on February 14, 2019. In the subsequent fortnight, Pakistan's benchmark index lost nearly 1,500 points, closing at 39,054.60 on February 28, 2019. More importantly, the KSE-100 tanked nearly 2 per cent on February 26, 2019, the date of the Balakot air strike by the Indian Air Force on Jaish-e-Mohammed terror camps in Pakistan. While the index was up 0.94 per cent on that date, it was down 1,452.38 during this period, according to historical data accessed via In 2016, the KSE-100 was closed on the date of the attack on the Indian Army camp in Uri, Jammu and Kashmir. While the benchmark index climbed 0.13 per cent to 40,414.72 on September 19, 2016, it plunged nearly 1.60 per cent in two days to close at 39,771.42 on September 21, 2016. On September 29, 2016, the KSE-100 slipped 0.15 per cent to 40,295.52, after India announced that it had conducted a surgical strike in Pakistan-occupied Kashmir. India's Director General Military Operations in a statement dated September 29, 2016 stated 'the Indian Army conducted surgical strikes at several… launch pads to pre-empt infiltration by terrorists.' 'During these counter terrorist operations significant casualties were caused to terrorists and those providing support to them,' he added.
Express Tribune
16-04-2025
- Business
- Express Tribune
PSX ends two-day rally on profit-taking
Listen to article The Pakistan Stock Exchange (PSX) ended lower on Wednesday, snapping a two-day winning streak, as the benchmark KSE-100 index fell around 750 points on the back of profit-taking at higher levels. Despite the early momentum that pushed the index above 117,424, late-session selling, particularly in large-cap exploration and production (E&P) stocks, reversed gains. The market also failed to recover the "Monday Tariff Gap," signalling a bearish near-term bias. Among active stocks on the index, 25 advanced while 71 declined. UBL (+0.87%) stood out, reporting a 125% year-on-year (YoY) jump in 1QCY25 earnings per share (EPS) to Rs29.34 along with a dividend of Rs11 and a two-for-one stock split. "Stocks closed sharply lower in the earnings season amid 3.5% contraction in large-scale manufacturing (LSM) growth for February 2025 and investor fears over the outcome of US-China tariff war," said Ahsan Mehanti of Arif Habib Corporation. "Rupee instability and the dismal data of cement sales for March 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 decline of 755.40 points, or 0.65%, and settled at 116,020.11. Arif Habib Limited (AHL), in its report, wrote that the market failed to recover the "Monday Tariff Gap" and witnessed a downside displacement, reflecting a bearish near-term bias. Key gainers included UBL (+0.87%), Engro Fertilisers (+1.28%) and MCB Bank (+0.94%) while Mari Petroleum (-2.51%), Pakistan Petroleum (-1.75%) and PSO (-2.43%) were the major drags on the index, it said. UBL reported strong 1QCY25 results with EPS of Rs29.34 (+125% YoY) and a dividend per share of Rs11. It also announced a two-for-one stock split. The performance was driven by a 200% YoY rise in net interest income and a Rs1.6 billion provisioning reversal. Meanwhile, AHL said, Pakistan planned to boost imports of cotton and soybean from the US in an effort to reduce its trade surplus and avoid potential US tariffs. "Technicals show a downside move from the key gap zone (117.6k118.6k), with the high-on-day at 117.4k, reinforcing the bearish outlook." Topline Securities reported that the bourse had a hot and cold session, which reflected a mix of optimism and caution among investors. The market opened on a strong footing, gaining 648 points in early trade. However, the momentum fizzled out in the second half as profit-taking took centre stage, it said. The index slipped to the intra-day low of 999 points and closed at 116,020, down 755 points. The volatility could be largely attributed to the ongoing trade tensions between the United States and China, which reignited concerns about global economic stability and impacted investor sentiment, Topline added. JS Global analyst Muhammad Hasan Ather said that the KSE-100 index snapped the two-day winning streak to close lower at 116,020 (-0.65%). Stocks carried the momentum in early trade to test levels above 117,424 on the benchmark index, however, late selling wiped out the gains, eventually dragging the market into the red, mainly led by large-cap E&P stocks. Bank and cement stocks kept the excitement going as investors rode the market. With external accounts strengthening and a robust liquidity, the momentum was expected to remain strong, especially in banking and export-driven sectors, he added. Overall trading volume was recorded at 481.8 million shares compared with the previous session's tally of 479.5 million. The value of shares traded during the day was Rs38.5 billion. Shares of 451 companies were traded in the ready market. Of these, 140 stocks closed higher, 260 declined and 51 remained unchanged. Cnergyico PK led the volume chart with 35.6 million shares, losing Rs0.02 to close at Rs8.51. It was followed by The Bank of Punjab with 25.5 million shares, declining Rs0.06 to close at Rs11.11 and Fauji Foods with 25.3 million shares, gaining Rs0.10 to close at Rs15.91. During the day, foreign investors bought shares worth Rs222 million, according to the NCCPL.
