Business

Pakistan stocks drop steeply as political uncertainty peaks

Published

9 months ago

Farwa

Market closes at 47,429.82 after losing 956.43 points.
Shares of 343 companies traded during session.
“Correction, after market hit 49,000, is here but will soon subside.”

KARACHI: The Pakistan Stock Exchange (PSX) on Tuesday witnessed a steep decline after the benchmark KSE-100 fell by nearly 1,000 points as it went through a correction since jumping past the 49,000 mark.

The market closed the day on a negative note as it shed 956.43 points or 1.98% to settle at 47,429.82 points.

According to a report by Arif Habib Limited, the 48,000 mark proved to be pivotal and trade below saw downside momentum accelerate. “The correction that we had been anticipating since the market hit 49,000 is here but will soon subside,” it added.

However, there are several factors that weighed on the market sentiments including political uncertainty and the ambiguity surrounding the upcoming elections and caretaker set-up.

Pakistan-Kuwait Investment Company’s Head of Research Samiullah Tariq said that the stocks plunged as political jitters sparked a massive profit-taking spree with investors shedding risky assets in an overbought market amid economic headwinds that are far from losing strength — much less changing course in the near to medium term.

Head of Equities at Intermarket Securities Raza Jafri told Geo.tv that selling was witnessed in profit-taking in state-owned oil explorers which have yet to see an improvement in circular debt.

“In addition, it is possible that some redemptions may have come through given the KSE-100’s sharp Fiscal Year To Date (FYTD) rise in the backdrop of sustained high inflation. On the whole, it is not surprising to see episodic profit taking came through. Across FY24 however, Pakistan remains an excellent macro trade, with valuations likely to rerate when the interest rate cycle turns,” he added.

Shares of 343 companies were traded during the session. At the close of trading, 49 scrips closed in the green, 278 in the red, and 16 remained unchanged.

Cynergico PK Limited was the volume leader with 28.31 million shares traded, losing Rs0.33 to close at Rs3.47. It was followed by Oil & Gas Development Company Limited with 27.78 million shares traded, losing Rs7.72 to close at Rs97.85, and K-Electric Limited with 24.68 million shares gaining Rs0.13 to close at Rs2.10.

Business

Pakistan’s gold prices are still declining; see the most recent

Published

2 days ago

Farwa

The price of 10-gram gold reduced by Rs943 to settle at Rs207,733, while the price of gold dropped by Rs1200 to close at Rs242,300 a tola, according to the Sindh Sarafa Jewellers Association.

In the global market, the price of the precious metal fell by $10 to $2,349 per ounce, resulting in losses.

At 04:48 GMT, the spot price of gold had dropped by 0.2% to $2,354.77 per ounce. In the previous session, prices reached a two-week high.

American gold futures dropped 0.6% to $2,361.

Spot silver decreased by 0.4% to $28.03 per ounce, while palladium remained steady at $978.03 and platinum decreased by 0.1% to $992.89.

Business

Pakistan and the IMF begin talks for a new loan.

Published

2 days ago

Farwa

Pakistan is requesting a $6 to $8 billion bailout package from the international lender over the next three to four years to address its financial troubles.

A mission team led by Nathan Porter, the IMF’s Mission Chief in Pakistan, is meeting with a Pakistani delegation led by Finance Minister Muhammad Aurangzeb.

According to sources familiar with the situation, Islamabad may face more difficult options, such as raising power and gas bills.

Mr. Aurganzeb informed the IMF team that the country’s economy has improved as a result of the IMF loan package, and Islamabad is ready to sign a new loan programme to further develop.

The IMF mission expressed satisfaction with Islamabad’s efforts to revive the country’s struggling economy.

The IMF praised Pakistan’s economic growth in its staff report earlier this week, but warned that the outlook remains challenging, with very high downside risks.

The country nearly avoided collapse last summer, and its $350 billion economy has stabilized since the end of the last IMF program, with inflation falling to roughly 17% in April from a record high of 38% last May.

Business

Petrol prices are likely to drop significantly beginning May 16.

Published

2 days ago

Farwa

According to sources, the government is set to decrease petrol prices by Rs 14 per litre and diesel prices by Rs 10 on May 16 for the next fortnight’s revision.

Last month, the government reduced the price of fuel and high-speed diesel by Rs5.45 and Rs8.42 per fortnight, respectively.

The current fuel price is Rs288.49 per litre, while the HSD price is Rs281.96.

Meanwhile, oil prices fell further on Monday, as signs of sluggish fuel consumption and comments from U.S. Federal Reserve officials dimmed optimism for interest rate reduction, which may slow growth and reduce fuel demand in the world’s largest economy.

Brent crude prices down 25 cents, or 0.3%, to $82.54 a barrel, while US West Texas Intermediate crude futures fell 19 cents, or 0.2%, to $78.07 per barrel.

Oil prices also declined on signals of poor demand, according to ANZ analysts, as gasoline and distillate inventories in the United States increased in the week before the start of the driving season.

Refiners throughout the world are dealing with falling diesel profitability as new refineries increase supply and warm weather in the northern hemisphere and weak economic activity reduce demand.