Latest news with #NajeebAhmedKhanWarsi
Arab News
06-05-2025
- Business
- Arab News
Pakistan vows retaliation saying India fired missiles at five locations
Bears dominate Pakistan stocks as risk-averse investors wary of India standoff fallout KARACHI: Pakistan's stocks lost more than 500 points on Tuesday after early morning gains as risk-averse investors remained wary of the country's ongoing tensions with nuclear-armed neighbor India, analysts said. The benchmark KSE-100 Index rose as much as one percent or 900 points after trading kicked off at the bourse in the morning, following a surprise move by the central bank on Monday to slash the key policy rate by 100 basis points 11 percent to spur growth amid challenges posed by US trade tariffs and geopolitical tensions with archrival India. However, as the day progressed, profit-taking emerged across key sectors, gradually eroding the morning gains. The index ultimately succumbed to selling pressure, hitting an intraday low of 683 points and closing the session at 113,568 level, down by 533 points or 0.47 percent. 'Index remained bullish in intraday trade following the State Bank of Pakistan's 100 basis points policy rate cut [on Monday],' Najeeb Ahmed Khan Warsi, head of online trading at Foundation Securities Ltd., told Arab News in Karachi, adding that the rate cut had lifted investor sentiment and triggered buying across key sectors such as oil, cement, and energy. Market participants were optimistic about lower financing costs and improved earnings potential under a more accommodative monetary policy stance, Warsi added. At 11 percent, the interest rate is at its lowest since December 2021, creating further room for the economy to expand amid easing inflation. Shankar Talreja, director of research at brokerage firm Topline Securities Ltd., said the market was positive in the morning primarily on the back of reports that banks would release payments to settle energy sector debt, also called circular debt. Energy scrips like Pakistan State Oil, Oil & Gas Development Company Ltd. and Pakistan Petroleum Ltd. rallied more than two percent in daily trade 'on the hope of payment disbursement from the banking sector to settle the Rs1.2 trillion circular debt,' said Muhammad Rizwan, director brokerage at Chase Securities Pakistan, in a note to clients. Talreja said there was a solid ground for the central bank to cut borrowing costs. 'However, the market was uncertain earlier on the timings just due to geopolitical tensions,' he said in a text message to Arab News. But Tuesday's early morning rally proved short-lived as investors started selling their shareholdings to book profits, dragging the benchmark index 0.5 percent to close at 113,568 points. Cement stocks bore the brunt of profit-taking and dropped as much as three percent. 'Indo-Pak issues (are) clouding the gains actually,' Talreja said. 'Despite an unexpected cut in the monetary policy statement, investors preferred to book gains in PSX as border tensions are still at a high level,' said Rizwan of Chase Securities. Warsi said profit-taking, regional uncertainty with India and caution ahead of the new federal budget for FY26 were weighing on investor sentiment despite a supportive monetary stance. Pakistan is expected to announce its budget for 2025-26 next month. On Monday, Moody's said the standoff with India could hurt Pakistan's $350 billion economy, which is on a path to recovery after securing a $7 billion bailout program from the International Monetary Fund last year and staving off a default threat. 'Sustained escalation in tensions with India would likely weigh on Pakistan's growth and hamper the government's ongoing fiscal consolidation, setting back Pakistan's progress in achieving macroeconomic stability,' Moody's said. 'A persistent increase in tensions could also impair Pakistan's access to external financing and pressure its foreign-exchange reserves,' it added. The report comes two days after Reuters reported that India has asked the IMF to review its loans to Pakistan. India's economy is not expected to see major disruptions since it has 'minimal economic relations' with Pakistan — although higher defense spending could weigh on New Delhi's fiscal strength and slow fiscal consolidation, Moody's added. Pakistan on Tuesday also accused India of altering the flow of the Chenab River, one of three rivers placed under Pakistan's control according to the now suspended Indus Waters Treaty of 1960. The stoppage of water is likely to negatively impact Pakistan's agriculture, which contributes more than 20 percent to gross domestic product.
Arab News
06-05-2025
- Business
- Arab News
UK may restrict students from countries, including Pakistan, with high asylum claims
Bears dominate Pakistan stocks as risk-averse investors wary of India standoff fallout KARACHI: Pakistan's stocks lost more than 500 points on Tuesday after early morning gains as risk-averse investors remained wary of the country's ongoing tensions with nuclear-armed neighbor India, analysts said. The benchmark KSE-100 Index rose as much as one percent or 900 points after trading kicked off at the bourse in the morning, following a surprise move by the central bank on Monday to slash the key policy rate by 100 basis points 11 percent to spur growth amid challenges posed by US trade tariffs and geopolitical tensions with archrival India. However, as the day progressed, profit-taking emerged across key sectors, gradually eroding the morning gains. The index ultimately succumbed to selling pressure, hitting an intraday low of 683 points and closing the session at 113,568 level, down by 533 points or 0.47 percent. 'Index remained bullish in intraday trade following the State Bank of Pakistan's 100 basis points policy rate cut [on Monday],' Najeeb Ahmed Khan Warsi, head of international trading at Foundation Securities Ltd., told Arab News in Karachi, adding that the rate cut had lifted investor sentiment and triggered buying across key sectors such as oil, cement, and energy. Market participants were optimistic about lower financing costs and improved earnings potential under a more accommodative monetary policy stance, Warsi added. At 11 percent, the interest rate is at its lowest since December 2021, creating further room for the economy to expand amid easing inflation. Shankar Talreja, director of research at brokerage firm Topline Securities Ltd., said the market was positive in the morning primarily on the back of reports that banks would release payments to settle energy sector debt, also called circular debt. Energy scrips like Pakistan State Oil, Oil & Gas Development Company Ltd. and Pakistan Petroleum Ltd. rallied more than two percent in daily trade 'on the hope of payment disbursement from the banking sector to settle the Rs1.2 trillion circular debt,' said Muhammad Rizwan, director brokerage at Chase Securities Pakistan, in a note to clients. Talreja said there was a solid ground for the central bank to cut borrowing costs. 'However, the market was uncertain earlier on the timings just due to geopolitical tensions,' he said in a text message to Arab News. But Tuesday's early morning rally proved short-lived as investors started selling their shareholdings to book profits, dragging the benchmark index 0.5 percent to close at 113,568 points. Cement stocks bore the brunt of profit-taking and dropped as much as three percent. 'Indo-Pak issues (are) clouding the gains actually,' Talreja said. 'Despite an unexpected cut in the monetary policy statement, investors preferred to book gains in PSX as border tensions are still at a high level,' said Rizwan of Chase Securities. Warsi said profit-taking, regional uncertainty with India and caution ahead of the new federal budget for FY26 were weighing on investor sentiment despite a supportive monetary stance. Pakistan is expected to announce its budget for 2025-26 next month. On Monday, Moody's said the standoff with India could hurt Pakistan's $350 billion economy, which is on a path to recovery after securing a $7 billion bailout program from the International Monetary Fund last year and staving off a default threat. 'Sustained escalation in tensions with India would likely weigh on Pakistan's growth and hamper the government's ongoing fiscal consolidation, setting back Pakistan's progress in achieving macroeconomic stability,' Moody's said. 'A persistent increase in tensions could also impair Pakistan's access to external financing and pressure its foreign-exchange reserves,' it added. The report comes two days after Reuters reported that India has asked the IMF to review its loans to Pakistan. India's economy is not expected to see major disruptions since it has 'minimal economic relations' with Pakistan — although higher defense spending could weigh on New Delhi's fiscal strength and slow fiscal consolidation, Moody's added. Pakistan on Tuesday also accused India of altering the flow of the Chenab River, one of three rivers placed under Pakistan's control according to the now suspended Indus Waters Treaty of 1960. The stoppage of water is likely to negatively impact Pakistan's agriculture, which contributes more than 20 percent to gross domestic product.
Arab News
06-05-2025
- Business
- Arab News
Pakistan inaugurates national intelligence, threat assessment center amid India tensions
Bears dominate Pakistan stocks as risk-averse investors wary of India standoff fallout KARACHI: Pakistan's stocks lost more than 500 points on Tuesday after early morning gains as risk-averse investors remained wary of the country's ongoing tensions with nuclear-armed neighbor India, analysts said. The benchmark KSE-100 Index rose as much as one percent or 900 points after trading kicked off at the bourse in the morning, following a surprise move by the central bank on Monday to slash the key policy rate by 100 basis points 11 percent to spur growth amid challenges posed by US trade tariffs and geopolitical tensions with archrival India. However, as the day progressed, profit-taking emerged across key sectors, gradually eroding the morning gains. The index ultimately succumbed to selling pressure, hitting an intraday low of 683 points and closing the session at 113,568 level, down by 533 points or 0.47 percent. 'Index remained bullish in intraday trade following the State Bank of Pakistan's 100 basis points policy rate cut [on Monday],' Najeeb Ahmed Khan Warsi, head of international trading at Foundation Securities Ltd., told Arab News in Karachi, adding that the rate cut had lifted investor sentiment and triggered buying across key sectors such as oil, cement, and energy. Market participants were optimistic about lower financing costs and improved earnings potential under a more accommodative monetary policy stance, Warsi added. At 11 percent, the interest rate is at its lowest since December 2021, creating further room for the economy to expand amid easing inflation. Shankar Talreja, director of research at brokerage firm Topline Securities Ltd., said the market was positive in the morning primarily on the back of reports that banks would release payments to settle energy sector debt, also called circular debt. Energy scrips like Pakistan State Oil, Oil & Gas Development Company Ltd. and Pakistan Petroleum Ltd. rallied more than two percent in daily trade 'on the hope of payment disbursement from the banking sector to settle the Rs1.2 trillion circular debt,' said Muhammad Rizwan, director brokerage at Chase Securities Pakistan, in a note to clients. Talreja said there was a solid ground for the central bank to cut borrowing costs. 'However, the market was uncertain earlier on the timings just due to geopolitical tensions,' he said in a text message to Arab News. But Tuesday's early morning rally proved short-lived as investors started selling their shareholdings to book profits, dragging the benchmark index 0.5 percent to close at 113,568 points. Cement stocks bore the brunt of profit-taking and dropped as much as three percent. 'Indo-Pak issues (are) clouding the gains actually,' Talreja said. 'Despite an unexpected cut in the monetary policy statement, investors preferred to book gains in PSX as border tensions are still at a high level,' said Rizwan of Chase Securities. Warsi said profit-taking, regional uncertainty with India and caution ahead of the new federal budget for FY26 were weighing on investor sentiment despite a supportive monetary stance. Pakistan is expected to announce its budget for 2025-26 next month. On Monday, Moody's said the standoff with India could hurt Pakistan's $350 billion economy, which is on a path to recovery after securing a $7 billion bailout program from the International Monetary Fund last year and staving off a default threat. 'Sustained escalation in tensions with India would likely weigh on Pakistan's growth and hamper the government's ongoing fiscal consolidation, setting back Pakistan's progress in achieving macroeconomic stability,' Moody's said. 'A persistent increase in tensions could also impair Pakistan's access to external financing and pressure its foreign-exchange reserves,' it added. The report comes two days after Reuters reported that India has asked the IMF to review its loans to Pakistan. India's economy is not expected to see major disruptions since it has 'minimal economic relations' with Pakistan — although higher defense spending could weigh on New Delhi's fiscal strength and slow fiscal consolidation, Moody's added. Pakistan on Tuesday also accused India of altering the flow of the Chenab River, one of three rivers placed under Pakistan's control according to the now suspended Indus Waters Treaty of 1960. The stoppage of water is likely to negatively impact Pakistan's agriculture, which contributes more than 20 percent to gross domestic product.
Arab News
06-05-2025
- Business
- Arab News
Bears dominate Pakistan stocks as risk-averse investors wary of India standoff fallout
KARACHI: Pakistan's stocks lost more than 500 points on Tuesday after early morning gains as risk-averse investors remained wary of the country's ongoing tensions with nuclear-armed neighbor India, analysts said. The benchmark KSE-100 Index rose as much as one percent or 900 points after trading kicked off at the bourse in the morning, following a surprise move by the central bank on Monday to slash the key policy rate by 100 basis points 11 percent to spur growth amid challenges posed by US trade tariffs and geopolitical tensions with archrival India. However, as the day progressed, profit-taking emerged across key sectors, gradually eroding the morning gains. The index ultimately succumbed to selling pressure, hitting an intraday low of 683 points and closing the session at 113,568 level, down by 533 points or 0.47 percent. 'Index remained bullish in intraday trade following the State Bank of Pakistan's 100 basis points policy rate cut [on Monday],' Najeeb Ahmed Khan Warsi, head of international trading at Foundation Securities Ltd., told Arab News in Karachi, adding that the rate cut had lifted investor sentiment and triggered buying across key sectors such as oil, cement, and energy. Market participants were optimistic about lower financing costs and improved earnings potential under a more accommodative monetary policy stance, Warsi added. At 11 percent, the interest rate is at its lowest since December 2021, creating further room for the economy to expand amid easing inflation. Shankar Talreja, director of research at brokerage firm Topline Securities Ltd., said the market was positive in the morning primarily on the back of reports that banks would release payments to settle energy sector debt, also called circular debt. Energy scrips like Pakistan State Oil, Oil & Gas Development Company Ltd. and Pakistan Petroleum Ltd. rallied more than two percent in daily trade 'on the hope of payment disbursement from the banking sector to settle the Rs1.2 trillion circular debt,' said Muhammad Rizwan, director brokerage at Chase Securities Pakistan, in a note to clients. Talreja said there was a solid ground for the central bank to cut borrowing costs. 'However, the market was uncertain earlier on the timings just due to geopolitical tensions,' he said in a text message to Arab News. But Tuesday's early morning rally proved short-lived as investors started selling their shareholdings to book profits, dragging the benchmark index 0.5 percent to close at 113,568 points. Cement stocks bore the brunt of profit-taking and dropped as much as three percent. 'Indo-Pak issues (are) clouding the gains actually,' Talreja said. 'Despite an unexpected cut in the monetary policy statement, investors preferred to book gains in PSX as border tensions are still at a high level,' said Rizwan of Chase Securities. Warsi said profit-taking, regional uncertainty with India and caution ahead of the new federal budget for FY26 were weighing on investor sentiment despite a supportive monetary stance. Pakistan is expected to announce its budget for 2025-26 next month. On Monday, Moody's said the standoff with India could hurt Pakistan's $350 billion economy, which is on a path to recovery after securing a $7 billion bailout program from the International Monetary Fund last year and staving off a default threat. 'Sustained escalation in tensions with India would likely weigh on Pakistan's growth and hamper the government's ongoing fiscal consolidation, setting back Pakistan's progress in achieving macroeconomic stability,' Moody's said. 'A persistent increase in tensions could also impair Pakistan's access to external financing and pressure its foreign-exchange reserves,' it added. The report comes two days after Reuters reported that India has asked the IMF to review its loans to Pakistan. India's economy is not expected to see major disruptions since it has 'minimal economic relations' with Pakistan — although higher defense spending could weigh on New Delhi's fiscal strength and slow fiscal consolidation, Moody's added. Pakistan on Tuesday also accused India of altering the flow of the Chenab River, one of three rivers placed under Pakistan's control according to the now suspended Indus Waters Treaty of 1960. The stoppage of water is likely to negatively impact Pakistan's agriculture, which contributes more than 20 percent to gross domestic product.
Arab News
24-04-2025
- Business
- Arab News
Pakistan's stocks, dollar bonds plunge amid investor concerns over surging tensions with India
KARACHI: Pakistan's stocks and dollar-denominated bonds plunged in value on Thursday, which financial experts attributed to investor concerns over surging tensions between Islamabad and New Delhi. Pakistan's stocks shed two percent of their index value when the market closed on Thursday, as per data from the Pakistan Stock Exchange (PSX). The benchmark KSE-100 Index plummeted to 114,661 points but managed to recover some ground before closing at 115,019.81 points. Pakistan's dollar-denominated bonds maturing in 2036 also declined by more than four cents to 74 cents, international news agency Reuters reported, citing data from Tradeweb. Pakistani financial experts attributed the plunges to increasing investor concerns after renewed tensions between Islamabad and New Delhi. New Delhi on Wednesday blamed Pakistan for being involved in an attack this week in Indian-administered Kashmir. Gunmen killed 26 men at a tourist site in the Anantnag district in Indian-administered Kashmir, following which India announced it was suspending its decades-old water-sharing treaty with Pakistan, among a raft of measures that included downgrading ties with Islamabad on Wednesday. Pakistan denied involvement in the attack and reciprocated with similar measures on Thursday. 'Both the KSE-100 and Nifty-50 are in the red today due to pressure from rising Pakistan-India tensions following the Pahalgam incident,' Najeeb Ahmed Khan Warsi, head of online trading at brokerage firm Foundation Securities Ltd., told Arab News. The Nifty-50 is India's National Stock Exchange index, representing the float-weighted average of the country's 50 largest listed companies. Warsi said investor sentiment remained 'cautious' despite corporate earnings largely aligning with market expectations, noting that trading at Asian markets had also subdued with global recovery losing momentum amid uncertainty over the US–China tariff policy. 'Geopolitical and global economic concerns continue to overshadow market fundamentals,' he said. Kamal Ahmed, an analyst at AKD Securities Ltd., said whenever border tensions arise, stock markets in both countries experience uncertainty. This prompts investors to take safer positions that impacts the market negatively. 'The market sentiment going forward will depend on how long this standoff lasts,' Ahmed explained. 'Investors will remain cautious and the market could decline further if the situation escalates.' Top brokerage firm Topline Securities said the plunge reflected 'heightened investor caution.' 'Despite the risk-averse sentiment, overall participation remained firm with volumes clocking in at 505 million shares and a turnover of Rs24.44 billion ($87.94 million), underscoring continued investor engagement amid macro and geopolitical overhangs,' Topline Securities said in a statement. Despite being supported by strong earnings, Pakistan's stock index has lost 2.9 percent since Tuesday, when the attack took place. Pakistan's stock market has been performing impressively, gaining more than 80 percent last year in both dollar and rupee terms. This surge was primarily driven by investor optimism surrounding a positive review by the International Monetary Fund, whose executive board is expected to approve a $1 billion tranche for Pakistan next month. Further positive developments, such as global ratings agency Fitch recently upgrading Pakistan's credit rating, are expected to support the growth of the country's equities.
