Business

KSE-100 index plunges over 650 points on fears of monetary tightening

Published

2 years ago

Farwa

KSE-100 index closes at 42,440.25 after losing 1.53%.
Delay in tough economic decisions and political uncertainty have unnerved investors.
Shares of 314 companies were traded during the session.

KARACHI: The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) plunged on Monday, the first day of the rollover week, as an across-the-board selling spree pushed share prices into the red zone.

The delay in tough economic decisions by the coalition government and heightened political uncertainty has unnerved investors. Moreover, the Pakistani rupee remains in a downward spiral with the US dollar gaining another 0.39% on Monday to close at 200.93.

The index remained jittery over concerns regarding monetary policy tightening which was to be announced after the session.

It is worth mentioning that contrary to market expectations the State Bank of Pakistan (SBP) raised the benchmark interest rate by 150 basis points to 13.75% for the next six weeks in order to stabilise inflation and economic growth.

Moreover, uncertainty regarding the ongoing talks between Pakistan and the International Monetary Fund (IMF) mission for the revival of the stalled multibillion-dollar programme took a toll on the market.

At close, the benchmark KSE-100 index closed at 42,440.25 after losing 660.46 points or 1.53%.

A report from Arif Habib Limited noted that the market witnessed a bloodbath session as investors remained bearish throughout the day.

“The benchmark KSE-100 index nosedived from the beginning of the session as an increase in the political noise over the weekend and uncertainty regarding resumption of IMF programme along with continued depreciation of Pakistani rupee against the US dollar and rate hike in the Monetary policy, shattered investors’ confidence,” the report noted.

The brokerage house noted that the volumes remained dull on the mainboard although hefty volumes were observed in third-tier stocks.

Sectors contributing to the performance included cement (-120.8 points), fertiliser (-89 points), exploration and production (-79.9 points), technology (-72.5 points), and banks (-63.1 points)

Shares of 314 companies were traded during the session. At the close of trading, 48 scrips closed in the green, 250 in the red, and 16 remained unchanged.

Overall trading volumes rose to 118.98 million shares compared with Friday’s tally of 189.92 million. The value of shares traded during the day was Rs3.57 billion.

Silk Bank was the volume leader with 9.97 million shares traded, gaining Rs0.04 to close at Rs1.32. It was followed by WorldCall Telecom with 7.62 million shares traded, losing Rs0.09 to close at Rs1.50 and K-Electric with 6.12 million shares traded, losing Rs0.08 to close at Rs2.50.

Business

An investigation was “launched” into PTA’s inability to get Rs. 78 billion back from Telcos

Published

15 hours ago

Farwa

The PTA has reportedly been instructed to reply to NAB by July 29. According to the enquiry, the national exchequer has suffered losses as a result of the delay in collecting dues.

The PTA has been asked to provide NAB with information about any pertinent records, court proceedings, and overdue bills. The NAB Karachi has summoned the PTA officials to appear with all pertinent documentation.

All of the principle sum has to be paid by the LDI firms, according to sources. But due to judicial stay orders, the collection of dues has been impeded.

These sources further state that a steering group has been established by the Ministry of IT to supervise the issue of dues recovery.

In a previous event, the tariffs levied on importing cell phones from outside were clarified by the Pakistan Telecommunication Authority (PTA).

Contrary to what some internet reports claim, PTA clarified in response to recent news regarding the tariffs on mobile phone imports that there hasn’t been a formal decision to remove these levies in Pakistan.

the PTA.Pakistanis living abroad will be the only ones free from these levies, according to the PTA. A SIM card can be inserted and the phone restarted to temporarily register a device for non-PTA mobile subscribers.

Business

Weekly inflation in Pakistan increased by 0.17 percent.

Published

15 hours ago

Farwa

The SPI for the week under review in the aforementioned group was reported at 321.95 points, as opposed to 321.40 points during the previous week, according to the PBS statistics.

The SPI for the combined consumption group saw a 20.09 percent increase in the week under review compared to the same week the previous year.

The weekly SPI includes 51 necessary items for every spending group and 17 urban areas, with a base year of 2015–16 = 100.

The SPI for the lowest consumption category, which is up to Rs 17,732, grew by 0.08 percent from 311.97 points to 312.22 points this past week.

0.18 percent,The index of consumption for the lowest consumption groups, which are Rs 17,732-22,888, Rs 22,889-29,517, Rs 29,518-44,175 and above Rs 44,175; increased by 0.13 percent, 0.15 percent, 0.18 and 0.19 percent, respectively.

Nineteen (37.25%) of the fifty-one commodities had price increases over the week, eight (15.69%) had price decreases, and twenty-four (47.06%) had unchanged pricing.

On a weekly basis, the following commodities saw significant price decreases: tomatoes (9.19%), onions (2.14%), LPG (1.04%), bananas (0.53%), wheat flour (0.35%), potatoes (0.17%), pulse masoor (0.16%), and bread (0.05%).

Chicken (4.80%), garlic (2.01%), pulse gramme (1.87%), eggs (1.71%), beef (0.93%), gur (0.89%), pulse moong (0.84%), fresh milk (0.45%), firewood (0.23%), and cigarettes (0.12%) were among the items whose average prices increased significantly week over week.

The commodities that saw a year-over-year decline were: wheat flour (31.75%); cooking oil (13.44%); vegetable ghee 2.5 kg (10.42%); vegetable ghee 1 kg (9.85%); mustard oil (8.33%); eggs (5.82%); rice basmati broken (4.15%); and tea package (2.52%).

Gas prices for Q1 (570.00%), onions (96.01%), pulse gramme (40.39%), powered milk (39.11%), garlic (34.61%), pulse moong (29.77%), men’s sandals (25.01%), beef (23.52%), salt powder (23.28%), pulse mash (22.50%), and energy saver (17.96%) were among the commodities whose average prices increased year over year.

Business

The price of gold has drastically dropped in Pakistan.

Published

2 days ago

Farwa

As per the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the cost of 24-karat gold per tola decreased by Rs 2,300, standing at Rs 250,500.

A kilogramme of 24-karat gold costing Rs1,972 less at the local market, making it worth Rs2114,763. Ten grammes of 22-karat gold had a price decrease to Rs196,866 as well.

After losing a significant $43 during the day, the rate per ounce of gold on the international market also decreased. It currently stands at $2,370.

On Thursday, the price of 24-karat silver also experienced a decline, falling by Rs60 to settle at Rs2,860 petal.