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Stocks fall as delay in IMF talks, Saudi crown prince visit weigh

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  • Investors concerned as world commodities rise.
  • Shelving of Saudi crown prince visit dents sentiment.
  • Losses led by exploration and production sector stocks.

KARACHI: Stocks Monday got off to a bad start to close the first day of the week weaker as investors weighed a reported holdup on the International Monetary Fund (IMF) front amid ongoing political uncertainties.

After remaining soaked in the red ink, the whole day, Pakistan Stock Exchange’s (PSX) benchmark KSE-100 shares index settled at 42,851 after losing 242 points or 0.56% compared to the last closing on Friday.

Benchmark KSE-100 index intra-day trading curve. — PSX data portal
Benchmark KSE-100 index intra-day trading curve. — PSX data portal

Topline Securities in a note said a delay in Pakistan-IMF talks, rescheduling of the Saudi crown prince’s visit and a rally in the global commodity markets where international oil prices were trading up over 3%.

During the day, exploration and production, fertiliser and technology sector stocks contributed negatively to the index.

Pakistan Petroleum Limited, Oil and Gas Development Company, Pakistan Services Limited, Engro Corporation, and Pakistan Oil Fields lost 141 points, cumulatively.

On the flip side, TRG Pakistan, Lotte Chemical, and Habib Bank Limited together added 133 points.

Darson Research said stocks went downhill from the word ‘go’. 

“Earlier, as the equities started going down volatility emerged immediately, resulting in a selling spree that pulled the index below the 43,0000-point mark,” the brokerage said.

Over 185 million shares traded today at the bourse while the total value clocked in at Rs6 billion. Hascol Petroleum led the volumes chart with a trade of 26.5 million shares. Stocks that contributed significantly to the volumes are Hascol Petroleum, Pakistan Tobacco Company, Lotte Chemical, TRG Pakistan, and WorldCall Telecom.

Arif Habib Limited (AHL) in its post-market analysis said the trade commenced with a negative gap and proceeded to hit an intraday low of 42,761.88 points due to a lack of investor participation. 

“Mainboard activity remained flat as the third-tier stocks continued to be the volume leaders,” the AHL report said.

Sectors that dragged the index down turned out to be exploration and production (-86.5 points), cement (-38.4 points), fertiliser (-37.2 points), commercial banks (-37 points), and miscellaneous (-31.3 points).

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

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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.

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Weekly inflation in Pakistan increased by 0.17 percent.

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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.

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The price of gold has drastically dropped in Pakistan.

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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.

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