Business

PSX weekly review: KSE-100 index posts highest weekly gain in two years

Published

2 years ago

Farwa

Benchmark KSE-100 index surges 4.9% during the week.
Gains come on the back of clarity on the political front.
A weekly rally of a similar extent was last witnessed in April 2020.

KARACHI: The outgoing week proved to be an outstanding one for the stock market as it recorded phenomenal gains on the back of clarity on the political front.

The KSE-100 index surged 4.9%, marking the highest week-on-week increase in two years, to settle at 46,601 points. A weekly rally of a similar extent was last witnessed in April 2020.

In the outgoing week, the market roared back after political clarity emerged. Following Prime Minister Shehbaz Sharif’s oath-taking ceremony, the new coalition government began work to tackle the economy.

Moreover, the rupee recovered against the dollar at a rapid pace, marking a 3.6% appreciation. Additionally, the country received record-high remittances this month clocking in at $28.3 billion, showing a 28% increase month-on-month, on account of Ramadan and Eid.

Other major developments during the week were: SBP’s reserves slip below $11 billion, banks approved Rs180 billion in housing loans, Pakistan Telecommunication Authority (PTA) renewed mobile operator licence for $486 million, cars’ sales surged 53.78% in nine months, Rs1 billion Islamic finance facility for renewable energy power plants, weekly inflation witnessed the biggest rise since November.

Meanwhile, foreign buying was witnessed this week, clocking in at $1.29 million against a net sell of $3.78 million recorded last week. Buying was witnessed in technology ($2.21 million), and fertiliser ($1.16 million).

On the domestic front, major selling was reported by a mutual fund ($9.89 million), followed by insurance companies ($7.76 million).

During the week under review, average volumes clocked in at 477 million shares (up by 213% week-on-week), while average value trade settled at $66.3 million (up by 135.6% week-on-week).

Major gainers and losers of the week

Sector-wise positive contributions came from commercial banks (+395 points), fertiliser (+292 points), technology and communication (+268 points), cement (+241 points), and refinery (+129 points). On the flip side, negative contributions came from real estate investment trust (-2.19 points), and vanaspati and allied industries (-1.55 points).

Scrip-wise major gainers were Engro Corporation (+152 points), TRG Pakistan (+136 points), Meezan Bank (+122 points), HBL (+85 points) and Systems Limited (+80 points). Meanwhile, major losers were Colgate-Palmolive (-14 points), Faysal Bank (-10.88 points), Fatima Fertilisers (-4.74 points), Allied Bank (-3.18 points), and Dolmen City REIT (-2.19 points).

Outlook for next week

A report from AHL predicted: “We expect the market to remain positive in the upcoming week. With the commencement of the result season and clarity on the political front, certain sectors and scrips are expected to stay under the limelight.”

“Furthermore, we are expecting the rollover of Chinese loans worth $2.3 billion and IMF negotiations, will help bolster our foreign exchange reserves.,” it said, adding that any dip in oil prices should also have a positive impact on the equity bourse.

“The KSE-100 is currently trading at a PER of 5.0x (2022) compared to the Asia-Pacific regional average of 11.5x while offering a dividend yield of 8.3% versus 2.6% offered by the region,” the brokerage house stated.

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.