Connect with us

Business

Pakistani stocks buoyed by US comments

Published

on

  • Positive US statement on Pakistan’s nukes improves sentiment
  • Rupee depreciation remains a worry for investors
  • All-eyes on FATF decision on Pakistan 

KARACHI: Stocks on Tuesday managed to anchor themselves on the edges of green, but could not venture much further owing as caution reigns supreme ahead of the FATF decision on Pakistan amid restive political undercurrents, traders said.

The KSE-100 Shares Index, the main gauge of the country’s apex bourse, the Pakistan Stock Exchange (PSX), gained 84 points or 0.20 percent, to end the day at 41,839 points. The market settled at that number after swinging between a day-high of 42,007.23 and an -low of 41,755.45.

Topline Securities in a post-market note said the US State Department’s positive statement regarding Pakistan’s nuclear programme and the country’s likely whitelisting in the upcoming FATF annual review gave stocks a reason to stay buoyed.

“The official announcement is likely to arrive over the weekend,” the brokerage said.

During the day, technology, E&P, and fertiliser sector stocks supported the index. Scrip-wise, TRG, POL, SNGP, DAWH, and FFC added 89 points, cumulatively, to the index. On the flip side, PSO, NESTLE, and EPCL together lost 25 points.

Out of 90 active companies traded in the session, 49 advanced, 40 retreated and one remained unchanged.

Over 189 million shares were traded, while the total value clocked in at Rs5.8bn. Worldcall Telecom led the volumes chart with 29.8 million traded shares.

The rupee on Tuesday depreciated against the US dollar for the fifth straight session on a spike in demand from importers. The rupee’s downward spiral has been a cause of serious concern over the state of the economy in the near future. 

The foreign exchange reserves are dwindling in the absence of new foreign inflows and a tight dollar supply was also weighing on local currency.

The local unit depreciated by 0.37% (Rs0.82) to reach 219.71 in the interbank market, according to the State Bank of Pakistan (SBP), down in value from the previous close of 218.89.

The dollar also strengthened in the open market as the rupee lost 0.50 to close at 226.20.

Business

An increase in tax was made on restaurant card payments.

Published

on

By

After 15 years, the SRB reduced the service tax that 58 hotels and restaurants in Karachi could have charged on debit and credit card purchases to 15%. This action is a part of the Sindh budget, which was designed to make eating out less expensive for customers.

Prior to this, Sindh’s tax on credit and debit card purchases was lowered from 15% to 8%.

Officials from the SRB have further stated that the service was made available for input adjustment of restaurant tax payments. With this step, businesses will be able to efficiently handle their tax responsibilities and the tax process would be made simpler.

Only a few eateries have been given authority to remove the lower tax rate, even though this tax facility has been reversed.

Continue Reading

Business

The KSE-100 Index rises following a sharp decline in the previous session.

Published

on

By

The government is considering filing a treason case under Article 6 against PTI founder Imran Khan, former president Arif Alvi, and former deputy speaker Qasim Suri. On Tuesday, the KSE-100 Index was up more than 1.3% during early trading, following a day of roughly a 2 percent loss due to growing political unrest and the potential banning of the party.

However, the benchmark index of the Pakistan Stock Exchange was trading at 79,074.63 by 11:49 a.m., having gained 535.45 points, or 0.68 percent, after reaching an intraday high of 79,578.04.

Market analysts said that political tensions were the primary cause of the KSE-100’s earlier Monday decline of 1578.71 points, or 1.97 percent.

They did point out, though, that a correction was a reasonable reaction to the protracted upswing that allowed the benchmark mark index to reach 81,839.86 on July 18.

As a result of interest rate cuts and the possibility of another IMF program, the Pakistan Stock Exchange has gained 22.97 percent so far this year. The cycle began on June 10 with a 1.5 percent decrease in borrowing costs.

Continue Reading

Business

In interbank trade, the US dollar crushes the Pakistani rupee.

Published

on

By

During interbank trade on Tuesday, the US dollar’s value increased by 15 paisas, reaching Rs 278.45.

It is important to remember that Fitch Business Monitor International expressed concern about the possibility that Pakistan’s economic stability may be jeopardized by the ongoing political unrest.

The fragile situation of Pakistan’s economic recovery was emphasized by Fitch in its most recent Pakistan Country Risk Report, which also noted that economic activity has been impeded by urban protests.

(PTI),In spite of multiple successful judicial appeals, the founder of Pakistan Tehreek-e-Insaaf (PTI) is expected to stay behind bars, the article notes, underscoring the fragile political environment.

With no urgent plans for new elections, this scenario suggests that the coalition administration will remain in office for the next 18 months.

Fitch also described an eventuality in which the government could change and be replaced by a technocratic administration. This suggests that the government of Pakistan would carry out the reforms demanded by the IMF, contributing to the 3.2% GDP growth expected in 2024–2025.

The policy rate has stabilized above projections, while the research predicted it may reach 16 percent this fiscal year and 14 percent the following year.

Continue Reading

Trending