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Business Recorder
17-05-2025
- Business
- Business Recorder
PSX ends the day in the red
KARACHI: The Pakistan Stock Exchange (PSX) experienced a rangebound trading session and ended in the red, as investors adopted a cautious stance ahead of the weekend. The benchmark KSE-100 Index lost 313 points or 0.26 percent to close at 119,649.14 points on Friday compared to 119,962 points on Thursday. The index also touched intraday high level of 120,506.18 points and low level of 119,541.15 points. Overall, some 572 million shares were traded on Friday down from 699 million a day earlier. On Friday, BRIndex100 opened at 12,887.79 points and finally closed at 12,827.18 points, which was 60.61 points or 0.47 percent lower than previous close. Total volume at BRIndex100 remained 485.862 million shares. BRIndex30 also lost 283.6 points or 0.74 percent to settle at 37,832.52 points with the total volume of 265.744 million shares. Analysts at the Topline said the lackluster market activity can be attributed to the absence of triggers and investor`s preference to remain on sideline before the weekend after the index gained to close at its ever-high level. Trading activity was subdued due to a lack of triggers and investors' cautious stance ahead of the weekend, following the index's Thursday's record high. The share trading value decreased to Rs.29.02 billion on Friday as compared to Rs39.08 billion a day earlier. However, the market capitalization rose by Rs 4 billion to Rs.14.38 trillion. Out of the total 465 companies, 206 companies share prices went up while share value of 209 companies went down, though 50 companies' share value remained unchanged. Key contributors to the index's performance included ENGRO, SYS, BAHL, UBL, and BAFL, which collectively added 271 points. Conversely, FFC, LUCK, MARI, OGDC, PSO, and EFERT detracted from the index's gains, cumulatively weighing it down by 476 points. PIA Holding Company LimitedB along with Khyber Textile Mills Limited remain the top gainers increasing by Rs1,132.52 and Rs.107.59 respectively to close at Rs.12,457.67 and Rs.1,183.53, while Unilever Pakistan Foods Limited and Nestle Pakistan Limited were the top losers declining by Rs.156.31 and Rs.88.22 respectively to close at Rs.22,725.50 and Rs.7,091.78. BR Automobile Assembler Index closed at 22,183.52 points, with a negative change of 104.6 points or 0.47 percent, with a turnover of 7.52 million shares. BR Cement Index ended at 10,192.04 points, posting a loss of 100.14 points or 0.97 percent, on a turnover of 29.97 million shares. BR Commercial Banks Index closed at 34,915.06 points or 0.61 percent up, with 27.19 million shares traded. Meanwhile, BR Power Generation and Distribution Index ended at 19,720.72 points, going down by 90.92 points or 0.46 percent, with a total turnover of 31.24 million shares. BR Oil & Gas Index closed at 11,767.44 points or 1.11 percent down, on 36.26 million shares turnover. BR Technology & Communication Index finished at 4,988.20 points marking a positive change of 7.76 points or of 0.16 percent, with total turnover of 64.48 million shares traded. Ahsan Mehanti of Arif Habib Corporation said that stocks closed lower amid dismal economic data on RDA inflows falling by 25pc month-on-month to $177 million and lower current account surplus at $12 million for April 25. Fears over IMF driven new tax measures in the federal budget FY26 also impact the sentiments, he added. Mehanti also said that falling global crude oil prices, concerns over lower Industrial base tariff reduction for government claimed IPPs revised contracts savings and senate approval of IMF driven higher grid levy under CPP Levy Bill 2025 played a catalyst role in bearish close. Analysts said investor interest was observed in the engineering sector in second half of trading where the heavily import dependent sector gained, largely on news that Prime Minister on Friday has directed to abolition Additional Custom Duty (ACD), which currently ranges from 2 percent to 7 percent and Regulatory Duty (RD), which currently ranges from 5 percent to 90 percent over the next four to five years. Additionally, Prime Minister has also approved a proposal to cap customs duty (CD) at a maximum of 15 percent. At present, CDs can exceed up to 100% on some items, they added. Copyright Business Recorder, 2025
Business Recorder
14-05-2025
- Business
- Business Recorder
MSCI adds 3 Pakistani cos to Frontier Market Index, 4 to FM Small Cap Index
Morgan Stanley Capital International (MSCI) Inc., a leading provider of critical decision support tools and services, announced the addition of three Pakistani companies as constituents on its Frontier Market (FM) and four companies in its FM Small Cap Index as part of its May 2025 index review. Meanwhile, three Pakistani companies have been removed from its FM Small Cap Index. In the MSCI Frontier Markets Indexes, three Pakistani companies have been added, stated MSCI in the note. These companies include Fauji Cement Co, DG Khan Cement Co and Maple Leaf Cement. These changes are to take effect from the close of May 30, 2025. 'This takes the total number of constituents in the MSCI Frontier Index to 26 from 23 earlier,' said Topline Securities in its note on the review. 'We estimate Pakistan's weight in the MSCI Frontier Market Index is close to 6-6.5%,' it added. MSCI adds 8 Pakistani companies to Small Cap, removes TRG Pakistan from Frontier Markets Indexes Topline said that the addition of three cement companies constitutes a weight of 26 basis points (bps). 'Assuming $2-3 billion funds tracking frontier market index globally, the inflows in these companies are estimated around $5-8 million,' it said. The brokerage house noted that the minimum threshold of free float and total market cap for the selection of frontier market stocks was $78 million and $155 million, respectively. Topline also highlighted that Interloop, Searle Limited and Abbott Laboratories are retained in the index despite not meeting the free float threshold of $78 million based on the buffer rule. Meanwhile, four Pakistani securities were added to MSCI Frontier Markets Small Cap Indexes, including Archroma Pakistan, At-Tahur, Engro Polymer & Chemicals and Pakistan Reinsurance. While one stock is moved to the main index, i.e. DG Khan Cement Co, and two are deleted, namely AGP Pharma and Agritech Limited. In September 2021, Pakistan was downgraded from its status as an emerging market, a little over four years after it was reclassified from the Frontier Markets (FM) Index by MSCI.
Business Recorder
08-05-2025
- Business
- Business Recorder
Stocks shed 4.1pc post-Pahalgam attack
KARACHI: The Pakistan Stock Exchange (PSX) has lost 4.1 percent over the past nine sessions since April 23, amid rising uncertainty over a possible attack from India According to Topline Research, while the recent Pahalgam attack has weighed heavily on investor sentiment at the Pakistan Stock, the market has historically not seen sharp declines during similar incidents in the past The tension between Indo Pak further escalated in the night/morning of May 06/07, wherein, neighboring country that carried out few air strikes in different parts of Pakistan and in response, Pakistan has also shot down 5 fighter jets of India, as per press release of Prime Minister's Office (PMO). Pakistan market has lost 6 percent early morning today after these airstrikes, however, later in the day, most of the losses are recovered and closed 3.13 percent. Since 23 Apr to 06 May, Pakistan market has already lost 4.1 percent in 9 sessions amidst uncertainty over possible attack from India. Due to this tension Pakistan stock are lackluster despite major positive developments in Pakistan including scheduling of IMF board meeting on 1st review of IMF program on May 09, reduction in policy rate by 100bps, and almost all-time low inflation reading of 0.3 percent in Apr 2025. Based on Topline assessment of previous Indo Pak Conflicts, namely Pulwama/Balakot Issue in Feb 2019 and Uri Strikes in Sep 2016, the market had not reacted very negatively. Surprisingly, yields on Pakistan Euro/Sukuk bonds in international market have improved (prices increased) by 18-61bps after falling on average 160bps across various tenors in last 8-9 days. Pulwama/Balakot Issue: On Feb 14, 2019, Indian troops were attacked and 12 days later India responded through air strikes in Pakistan on Feb 26, 2024. Pakistan Market lost 2% on Feb 26 when airstrike took place and 3 days losses fell to 1.4%, recovering 0.6%. Uri Strikes: India carried out airstrikes in Pakistan on Sep 29, 2016 in response to causalities reported during a militant attack on India Army at Uri on Sep 18, 2016. Market reacted positive after the strikes on Sep 29 and 1 day and 3 days gains were 0.6% and 2.1%, respectively. Previously IMF programs continued 'Business as Usual' during tense times. During Uri Strikes time, Pakistan also got approval of its 12th review under EFF facility on Sep 28, 2016. On Market Outlook, Topline believed that, market performance will be dependent on Pakistan's response to this aggression. Prime Minister Office press release also suggests that armed forces have been given authority to respond to this Indian aggression. Furthermore, approval of IMF program on May 09 will also be a trigger for market performance. Copyright Business Recorder, 2025
Business Recorder
01-05-2025
- Business
- Business Recorder
PSX sheds over 3,500 points
KARACHI: The Pakistan Stock Exchange (PSX) experienced a sharp and broad-based decline on Wednesday due to rising geopolitical tensions between Pakistan and India. The benchmark KSE-100 Index lost 3,545.60 points, or 3.09 percent, closing at 111,326.58 points on Wednesday, down from 114,872.18 points on Tuesday. The market opened on a negative note and remained under pressure, hitting an intraday low of 110,632 before recovering somewhat in the late hours. Trading volume at the ready counter increased to 490 million shares, up from 410 million shares in the previous session Analysts at Topline said the local equity market decline broad-based on Wednesday, as intensifying geopolitical tensions between Pakistan and India sent shockwaves through investor sentiment. On Wednesday, BRIndex100 opened at 12,154.23 points and closed at 11,775.43 points, which was 378.8 points or 3.12 percent lower than previous close with a total volume of 423.519 million shares. BRIndex30 also declined by 1,397 points or 3.89 percent to settle at 34,470.53 points, with a total volume was 281,445,375. The downturn was primarily fuelled by fears of an imminent military escalation. The Minister for Information and Broadcasting disclosed that Islamabad has 'credible intelligence' indicating that India may launch a military strike within the next 24 to 36 hours. The announcement triggered widespread risk aversion, with investors rushing to reduce exposure amid heightened uncertainty, they added. Similarly, the total traded value on the ready counter surged to Rs 31 billion compared to Rs 29 billion in the previous session. The market capitalization decreased by Rs 428 billion to Rs 13.521 trillion. Out of 457 active scrips, 30 closed in positive and 352 in negative while the value of 52 stocks remained unchanged. Cnergyico PK was the volume leader with 46 million shares and closed at Rs 7.09 followed by WorldCall Telecom that closed at Rs 1.25 with 41 million shares. B.O. Punjab ranked third with share trading of 20 million shares and it closed at Rs 9.12. PIA Holding Company LimitedB and Unilever Pakistan Foods Limited the top gainers increasing by Rs 396.94 and Rs 369.75 respectively to close at Rs 4,366.33 and Rs 23,469.75, while Ismail Industries Limited and Rafhan Maize Products Company Limited were the top losers declining by Rs 105.68 and Rs 84.90 respectively to close at Rs 1,628.83 and Rs 8,950.33. Analysts said that the benchmark index plunged by 3.09 percent end of the close, after hitting an intraday low of 4,240 points-a stark indicator of mounting market anxiety. Key heavyweight stocks significantly contributed to the market's fall. Notable laggards included LUCK, ENGROH, UBL, PPL, and FFC, which collectively pulled the index down by 1,132 points. They said that stocks fell across the board after Govt reports of India intending to carry out military action against Pakistan. Rupee instability, slump in global crude oil prices and fears over outcome of heightened Pak-India border tensions played catalyst role in record bearish activity, they added. BR Automobile Assembler Index closed at 21,656.39 points, posting a net loss of 809.32 points or 3.60 percent, with a total turnover of 6.79 Cement Index ended at 9,078.52 points, down by 370.48 points or 3.92 percent, with a total turnover of 62.66 million. BR Commercial Banks Index settled at 32,271.23 points, declining by 833.65 points or 2.52 percent, with a total turnover of 50.48 Power Generation & Distribution Index closed at 18,755.10points, falling 547.71 points or 2.84 percent, with a total turnover of 28.09 million. BR Oil & Gas Index dropped to 10,862.49points, reflecting a loss of 368.21 points or 3.28 percent, and a turnover of 53.40 Technology & Communication Index declined to 4,767.69points, shedding 148.61 points or 3.02 percent, with the highest turnover among the sectors at 65.29 million. Copyright Business Recorder, 2025
Business Recorder
01-05-2025
- Business
- Business Recorder
Profitability of listed banks jumps to Rs173bn
KARACHI: Pakistan's listed banks' profitability clocked in at Rs 173 billion, up by 14 percent YoY and 12 percent QoQ in the first quarter (Jan-March) of 2025 (1Q2025). According to a report issued by the Topline Securities, despite the decline in interest rates, the sector's NII clocked in at Rs 536 billion, up 23 percent YoY and 2 percent QoQ in 1Q2025, led by volumetric growth, favourable repricing, and higher yield of repo borrowings. Interest income declined by 19 percent YoY and 13 percent QoQ to Rs 1.4 trillion, whereas interest expense declined by 32 percent YoY and 20 percent QoQ to Rs 0.9 trillion. For analysis, Topline have included all listed banks. Non-interest income of the sector increased by 6 percent YoY but declined by 28 percent QoQ to Rs 133 billion 1Q2025. The QoQ decline is due to a fall in capital gains and fees & commission income. Profitability of listed banks rises 5pc YoY On the other hand, non-interest expense rose by 19 percent YoY but declined by 19 percent QoQ to Rs 293 billion in 1Q2025. The YoY increase is attributed to inflationary impact and branch expansions. However, the QoQ decline is mainly due to the absence of a one-time pension expense recorded by NBP. This takes the sector's Cost-to-Income ratio to 44percent in 1Q2025, compared to 44 percent in 1Q2024 and 51 percent in 4Q2024. Sector recorded a provisioning charge of Rs6 billion in 1Q2025, down 36 percent YoY and 83 percent QoQ. This decline is primarily due to the absence of provisioning charges following the implementation of IFRS-9 and improved asset quality, according to our channel checks. Effective tax rate for 1Q2025 stood at 53 percent, compared to 50 percent in 1Q2024 and 56 percent in 4Q2024. To recall, at the end of 2024, the government removed the ADR-related tax while increasing the overall tax rate from 49 percent (including super tax) to 53percent (including super tax) for calendar year 2025. Copyright Business Recorder, 2025
