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Express Tribune
24 minutes ago
- Business
- Express Tribune
PSX achieves all-time peak ahead of 2025-26 Federal Budget
Listen to article The Pakistan Stock Exchange (PSX) hit a record high on Tuesday as investor confidence soared ahead of the federal budget announcement, as the KSE-100 index surged by 782.56 points, current index at 122,423.56, gaining 0.64% during intra-day trading. Resuming activity after the Eidul Azha holidays, the trading session began with a positive momentum, building on the market's strong performance. The investor confidence, reflected in the Pakistan Stock Exchange's record performance, follows Moday's presentation of Pakistan's Economic Survey 2024-25. The market briefly touched a high of 122,611.53 points before settling at 122,423.56 points during intraday trading. Trading volumes remained robust with 144,033,353 shares exchanged, and the total value of shares traded reached Rs 7.78 billion. The previous day's close was recorded at 121,641.00 points. At the end of the previous week, PSX continued its positive momentum, with the benchmark KSE-100 index reaching an all-time high of 121,798 points on June 4, before settling at 121,641, marking a weekly gain of 1,950 points (+1.63%). Read more: PSX makes history on macro boost The rally was driven by positive developments, including successful budget talks with the IMF, the Asian Development Bank's approval of a $800 million financing package, and the finalisation of a Rs1.275 trillion circular debt resolution deal with banks. Macroeconomic indicators also supported sentiment, with a 10% rise in petroleum sales YoY, CPI-based inflation easing to 3.5%, and a 23% MoM reduction in the trade deficit. However, the State Bank's reserves fell slightly by $7 million to $11.5 billion. Sector-wise, commercial banks, power generation, fertiliser, and food products led the gains. Foreign sales amounted to $14.7 million, an increase compared to the previous week.
Express Tribune
3 days ago
- Business
- Express Tribune
PSX makes history on macro boost
Listen to article The Pakistan Stock Exchange (PSX) sustained its bullish streak in the outgoing week, with the benchmark KSE-100 index surging to an all-time high of 121,798 points on June 4, before settling at 121,641, marking a weekly gain of 1,950 points (+1.63%). The rally was fueled by renewed investor confidence following successful budget talks with the International Monetary Fund (IMF), the Asian Development Bank's (ADB) approval of a $800 million financing package and the government's finalisation of a Rs1.275 trillion circular debt resolution deal with banks – a significant development for the energy sector. Macroeconomic indicators further supported sentiment as petroleum sales jumped 10% year-on-year (YoY) in May 2025, the Consumer Price Index (CPI)-based inflation eased to 3.5% and the trade deficit narrowed 23% month-on-month (MoM). However, the State Bank's reserves dipped slightly by $7 million, settling at $11.5 billion. On a day-on-day basis, the PSX attempted once again on Monday to decisively breach the key psychological barrier of 120,000 at close but fell short, ending the session at 118,878, reflecting a decline of 813 points. It came due to profit-taking pressure at record levels. On Tuesday, the market soared to an all-time high above 120,000 points as investor optimism grew following the approval of a $800 million loan by the ADB for Pakistan's public finance programme and the government's approval of a Rs880 billion Public Sector Development Programme (PSDP). The benchmark KSE-100 index recorded an increase of 1,573 points and settled at 120,451. The bourse continued its record-breaking run on Wednesday, with the index closing at an all-time high of 121,799, up 1,348 points. Investor sentiment remained upbeat ahead of the federal budget, buoyed by expectations of fiscal relief measures and encouraging macroeconomic indicators. However, the PSX witnessed a volatile session on Thursday, with the benchmark index retreating after hitting record highs a day earlier. Investor sentiment turned cautious due to concerns about stringent conditions linked to a new IMF programme, including the proposed enforcement of agriculture income tax and the IMF's opposition to provincial energy subsidies. The PSX ended the day on a negative note at 121,641, down 158 points. "Building on last week's bullish trend, the market picked up pace, with the KSE-100 reaching an all-time high of 121,798 points on June 4, driven by buying interest across different sectors," Arif Habib Limited (AHL) wrote in its weekly report. Positive sentiment followed Pakistan's successful budget talks with the IMF, alongside the ADB's approval of a $800 million financing package. The government also finalised a Rs1.275 trillion circular debt resolution deal with banks, a significant move for the power sector, AHL said. Meanwhile, during May 2025, petroleum sales rose 10% YoY, inflation came in at 3.5% and the trade deficit narrowed 23% MoM. The State Bank's reserves declined $7 million to $11.5 billion. The market closed at 121,641, depicting a surge of 1,950 points, or 1.63% week-on-week (WoW). Sector-wise, the positive contribution came from commercial banks (1,044 points), power generation and distribution (369 points), fertiliser (206 points), food and personal care products (95 points) and chemicals (60 points). Meanwhile, the sectors that contributed negatively were technology and communication (82 points), automobile assemblers (29 points), miscellaneous (24 points), cable and electrical goods (10 points) and Real Estate Investment Trusts (five points). Scrip-wise, the positive contributors were Pakgen Power (327 points), Bank AL Habib (208 points), NBP (165 points), HBL (160 points) and Fauji Fertiliser Company (158 points). Foreigners' selling was witnessed during the week, which came in at $14.7 million compared to net selling of $5.56 million last week. Average volumes arrived at 660 million shares (-0.2% WoW) while average traded value settled at $98.6 million (up 24.9%), AHL added. Syed Danyal Hussain of JS Global wrote that the KSE-100 index hit an all-time high during the outgoing week, closing at a record level of 121,641 points, up 1.6% WoW. The rally was largely driven by optimism surrounding a potential agreement with the IMF, as indicated by the prime minister, which spurred pre-budget sentiment, he said. The government, following the IMF's endorsement, finalised a Rs1.275 trillion financing agreement with 18 commercial banks to address the power sector's circular debt. On the sectoral front, local cement dispatches rose 9% YoY in May 2025, bringing 11MFY25 volumes to nearly flat levels. Meanwhile, a 26% rise in exports during 11MFY25 lifted total cement sales to a growth of 2%, he added.
Express Tribune
19-04-2025
- Business
- Express Tribune
PSX ends week strong on economic tailwinds
Listen to article The benchmark KSE-100 index extended its bullish streak in the outgoing week, climbing 2,462 points (+2.1% week-on-week – WoW) to close at 117,316, buoyed by improving macroeconomic indicators and sector-specific momentum. On a day-on-day basis, following record-breaking remittances of $4.1 billion for March 2025, a robust rally marked trading at the Pakistan Stock Exchange (PSX) on Monday. The KSE-100 index went up 1,537 points and settled at 116,390. On Tuesday, the bourse extended gains on Fitch rating upgrade and the index recorded an increase of 385 points. Next day, the PSX ended a two-day rally due to profit-taking. At the end of trading, the KSE-100 posted a decline of 755 points. The cement sector and Asian markets helped the PSX stage a rebound on Thursday. At close, the index registered a robust gain of 881 points and settled at 116,901. The PSX ended the week on a bullish note, driven by encouraging macros. The index rose 414 points and closed at 117,316. Arif Habib Limited (AHL) wrote in its weekly report that the KSE-100 index remained in the green for almost throughout the week, crossing the 117,000 level, driven by improved macroeconomic indicators and positive sector-specific developments. A major boost came post-announcement of the current account for March 2025, which posted a record surplus of $1.2 billion (the highest-ever monthly surplus). Furthermore, it said, progress on resolving the power sector's circular debt further lifted market sentiment, given leading banks finalised a Rs1.275 trillion rescue package to stabilise the sector and bolster hopes for structural reforms. On the economic front, large-scale manufacturing (LSM) dropped 3.5% year-on-year (YoY) in February 2025, reflecting the ongoing challenges in the industrial sector. Meanwhile, foreign direct investment recorded a net inflow of $26 million in March 2025. However, the State Bank's reserves declined $127 million to $10.6 billion. Albeit, the market closed at 117,316, depicting a surge of 2,462 points, or 2.1% WoW. Sector-wise, positive contribution came from banks (1,736 points), cement (566 points), automobile (184 points), power (152 points) and technology (53 points). Meanwhile, the sectors that contributed negatively were fertiliser (288 points), exploration & production (172 points), engineering (13 points) and cable & electrical goods (8 points). Scrip-wise positive contributors were UBL (1,537 points), Lucky Cement (429 points), Hubco (160 points), NBP (149 points) and Sazgar Engineering Works (121 points). On the other hand, negative contribution came from Fauji Fertiliser Company (316 points), Mari Petroleum (231 points), HBL (65 points), Fatima Fertiliser (22 points) and Engro Polymer and Chemicals (21 points), AHL said. Foreigners' selling was witnessed during the week, which clocked in at $4.01 million compared to net buying of $9.92 million last week. Average volumes arrived at 456 million shares (down 18% WoW) while average value settled at $116 million (down 5% WoW). Among other major news, Rs300 billion in 'oil savings' will be allocated to Balochistan, Nepra will consider Rs0.0309/kWh fuel cost reduction for March 2025, BYD will launch Shark 6 PHEV in Pakistan in mid-2025, Fast Cables expanded production capacity with a new copper upcasting plant and government raised Rs965 billion through a T-bills' auction, AHL added. Abdul Basit of JS Global said the KSE-100 index continued its positive momentum during the week, gaining 2,462 points to close at 117,315. The week witnessed many positive developments on the economic front. Most notably, the current account posted a surplus of $1.2 billion in March, supported by record high remittances of $4.1 billion (+37% YoY). Cumulatively, the current account recorded a surplus of $1.9 billion in 9MFY25, compared to a deficit of $1.65 billion in the same period of last year, he said. In light of the improved external position, the SBP revised its FY25 year-end reserves target to $14 billion (from $13 billion), as per the SBP governor. Additionally, Pakistan is expected to receive $4-5 billion by end-June 2025, including inflows from international financial institutions. Kuwait also extended its oil credit facility to Pakistan for another two years, the JS analyst added.
