Business

PSX plunges over 1,378 points to hit 2.5-year low as politics weighs

Published

2 years ago

Farwa

Political tumult panics investors into shedding holdings.
All sights set on IMF amid depleting forex reserves.
Macroeconomic concerns dampen sentiment.

KARACHI: Pakistan stocks Tuesday plunged to a 30-month low as the country’s extremely riotous political situation freaked economy-wary investors into stampeding towards the exits, resulting in whopping losses, traders said.

The KSE-100 Shares Index, the benchmark of the country’s capital market, lost 1,378.54 points or about 3.47%, to close at 38,342.21 points.

Analysts say the dissolution of the Punjab Assembly and the prevailing crisis in the country amid continuous demand from Pakistan Tehreek-e-Insaf (PTI) for snap polls panicked the market into this vicious selloff.

The delay in the revival of the International Monetary Fund’s (IMF) loan programme and the ongoing political uncertainty in the country caused the bloodbath in the stock market.

PSX plunges over 1,378 points to hit 2.5-year low as politics weighs

Prime Minister Shehbaz Sharif-led government has been under pressure to revive the IMF programme but the “harsh conditions” set by the Washington-based lender have made it almost impossible for the country’s financial managers to proceed.

Meanwhile, the depleting forex reserves with the State Bank of Pakistan below the $5 billion mark — enough for less than three weeks of import — is making the investors jittery.

Talking to Geo.tv, Tahir Abbas, Head of Research at Arif Habib Limited, said the investment momentum was extremely negative.

The analyst pinned Tuesday’s tailspin partly on the IMF loan impasse and partly on the political crisis.

“Players are unable to see any efforts made by the government to resume the programme due to which they are not taking fresh positions,” he said.

Abbas added that news reports suggesting that the Khyber Pakhtunkhwa assembly would be dissolved today further dented investors’ sentiment.

Khurram Schehzad, CEO at Alpha Beta Core, said the IMF programme stalemate —a consequence of Pakistan’s dragging its feet on fulfilling the loan conditions— was one of the main triggers of the selloff as right now rapidly-depleting foreign exchange reserves were seemingly Pakistan’s biggest economic problem.

“The political uncertainty has increased due to the dissolution of the Punjab Assembly. There is a question mark on the federal government whether it will remain in power or not. The preexisting negative sentiment has now worsened,” Schehzad said.

He said the deeper the political uncertainty in the country, the higher the volatility in the market.

“However, if the government succeeds in reviving the IMF programme and reversing political uncertainty, the trend can take a turn for the better,” the analyst said.

Business

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

Published

19 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

19 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.