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Pakistan

PSX soars to new high of 67,756 points fuelled by cyclic sector

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A broker looks at an index board showing the latest share prices at the Pakistan Stock Exchange in Karachi. — AFP/File

Pakistan’s stock market scaled a new peak on Wednesday as majority of investors cheered the government’s privatisation push amid hopes of a rate cut especially after signs that inflation was finally cooling down, traders said.

Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index ended at 67,756.03 after jumping by a massive 869.77 points or 1.30%.

The cyclic sector stole the show on Wednesday as investors parked a lot of money in the cement and steel companies, mainly after reports of a rise in local and international cement dispatches for March.

However sectors like transport, technology and communication and commercial banking, also remained on investors’ radar.

Moreover, the government’s privatisation plans especially its initiative to sell off some State-Owned Enterprises (SOEs) fed the market with optimism as the consensus is that these companies would turn around in terms of profitability and efficiency under private ownership.

It must be noted that the Privatisation Commission on Tuesday opened the door for selling off Pakistan International Airlines (PIA), inviting expressions of interest (EOIs) from potential buyers.

“Confidence [is] further improving after good progress on privatisation along with foreign portfolio investment in government papers,” said Mohammed Sohail, CEO of brokerage house Topline Securities, in a note during intra-day trading.

“Cements stocks are (also) in limelight amid expectations of rate cut in coming months,” he said.

Brokerage Arif Habib Limited (AHL) in its market wrap said strong moves in the cement sector saw the KSE-100 push further into unchartered territory.

“As many as 67 stocks rose while 24 fell with Engro (+4.88%), Engro Fertilizer (+3.9%), and Lucky Cement (+4.78%) emerging as the biggest contributors to index gains,” the brokerage said.

It further said the addition of the cement sector, which had been sideways since the start of the year, could add another dynamic to the bull market. “Cement and steel names are positioning themselves to potentially be outperformers in Q2,” the AHL report said.

Pakistan’s consumer price index (CPI) for March 2024 punched in at 20.7% year-on-year, as compared to 23.1% year-on-year in February 2024 and 35.4% year-on-year in March 2023, the latest data issued by the Pakistan Bureau of Statistics (PBS).

In March 2024, the CPI surged by 1.7% compared to a mere 0.03% rise in the previous month and a 3.7% increase in March 2023, marking a notable uptick in inflation. These inflation figures surpassed market forecasts.

Consequently, the average annual inflation for the first nine months of fiscal year 2024 stands at 27.2% year-on-year, aligning with the corresponding figures from the previous year.

According to JS Global, this marks the lowest inflation rate recorded since May 2022, when it was at 13.8%. Additionally, it is the first instance in over three years that the Consumer Price Index (CPI)-based inflation has fallen below the key policy rate, currently set at 22%.

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Pakistan

Suzuki Bolan discontinued in Pakistan after 36 years; Here’s replacement for ‘Carry Dabba’ – Pakistan Observer

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LAHORE – Finally, it’s time to say goodbye to the iconic Suzuki Bolan as Pak Suzuki pulled plugs to replace the minivan with another model. Over the last 3.5 decades, Suzuki Bolan enjoyed decent sales and was valued for its flexibility, serving a multi-passenger vehicle and for commercial purposes.

Amid shift in auto landscape in Pakistan, Bolan becomes latest drive to be discontinued after Suzuki Mehran, which you can still spot.

Pictures of Suzuki Bolan’s last batch surfaced online, and Pakistanis hit nostalgia as many grew up in this vehicle. The final chassis number marked as 01151691. The country’s oldest automaker and maker of Bolan also confirmed discontinuation of the 800cc Carry Dabba.

The company decided to replace Bolan for its outdated design and lack of safety features. Amid its low sales, consumer demand for a modern replacement like Changan Karvaan increased.

Suzuki Every to Replace Bolan

Suzuki earlier mentioned that Every will replace Bolan, and one of its recent model was unveiled at a recent auto show.

The launch of Every models faced delays due to import challenges and it is expected to launch in mid October.

Suzuki Bolan Price in Pakistan

 

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Pakistan

Gold prices reach historic high in Pakistan – Pakistan Observer

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Your source for latest Pakistan, world news. Stay updated on politics, business, sports, lifestyle, CPEC, and breaking news. Accurate, timely, and comprehensive coverage.

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Pakistan

Stocks rally past 82,000 mark as investors bet on IMF deal approval

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A man uses a mobile phone as he takes a photo of the electronic board displaying share prices during a trading session at the Pakistan Stock Exchange, on November 28, 2023. — Reuters

Stocks hit a record high on Friday, with the benchmark index topping the 82,000 mark as investors binged on big names amid forecasts of a further drop in inflation, strengthening the case for another rate cut by the State Bank of Pakistan in its next monetary policy meeting, traders said.

The KSE-100 index jumped by 615.16 points, or 0.76%, to reach 82,074.44 from its previous close of 81,459.28.

The index, fuelled by buying activity in heavyweight shares, rallied nearly 900 points during the opening hours of trading before succumbing to profit-taking in the latter half of the session, trimming early gains.

Analysts attributed this bull run to expectations of a sharp drop in inflation and interest rates. They added that government securities now have a kinked yield curve, with 2-year and 5-year yields above the 3-year yield.

Buying activity was seen in key sectors, including cement, commercial banks, fertiliser, and refineries, with index-heavy stocks such as MEBL, UBL, ENGRO, and FFC trading in the green.

Experts added that part of the positivity comes from investors anticipating the International Monetary Fund (IMF) Executive Board’s approval.

The IMF is scheduled to review Pakistan’s 37-month Extended Fund Facility (EFF), amounting to about $7 billion, on September 25.

On Thursday, the Pakistan Stock Exchange (PSX) rose on improved local macroeconomic indicators and a larger-than-expected reduction by the Federal Reserve, with the KSE-100 index closing at 81,459.29, a gain of 997.95 points or 1.24%.

Meanwhile, world stocks hovered near record highs on Friday, underpinned by a big interest rate cut from the Federal Reserve earlier this week, while the yen eased after Bank of Japan Governor Kazuo Ueda tempered market expectations around imminent rate hikes, according to Reuters.

The dollar climbed 1.2% on the Japanese currency to 144.29 – its strongest in two weeks – on the back of Ueda’s remarks, having earlier fallen around 0.6% to 141.74 after the BOJ kept interest rates steady in a widely expected move.

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Pakistan

PSX surges 1,510 points, crosses 81,000 mark amid positive economic signals – Pakistan Observer

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KARACHI –  Pakistan Stock Exchange on Thursday experienced a major surge of 1,510 points which resulted in the index crossing the 81,000-point level, rising to 81,971 points.

The factors such as expectations of receiving approval for a loan program from the IMF this month, a gradual reduction in the external financial gap and loan-related difficulties, a growth of 2.38% in large-scale industries, and the Asian Development Bank’s indication of providing $8 billion in loans over the next four years contributed to this bullish trend in the Pakistan Stock Exchange, allowing the index to surpass the psychological level of 81,000 points.

Besides it, the State Bank’s decision to reduce interest rates by 2% has positively impacted capital market activities while recoveries in the textile, food, chemical, auto, and garments sectors have kept the market in the green zone since the start of trading.

 

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