Tuesday, April 23 2024

PSX partners with London Stock Exchange Group
In a landmark development, the Pakistan Stock Exchange (PSX) has signed a collaborative understanding with LSEG (London Stock Exchange Group) on Environment, Social, and Governance (ESG). Under this mutual understanding, both companies will work to develop a suite of standardised ESG data tools for PSX-listed companies to report their ESG data, according to a PSX press statement. This understanding benefits PSX and listed companies by providing ESG scoring and enhancing the visibility of Pakistani companies on international ESG radars. Additionally, it lays the groundwork for an ESG Index planned by PSX in the future, aligning with PSX’s vision on ESG and marking a significant step in the Exchange’s ESG journey. Through this collaboration, PSX will encourage listed companies to adopt ESG reporting in line with global standards. Furthermore, it supports the ESG Taskforce established by PSX to bolster the adoption of ESG standards. PSX also plans to hold training sessions with LSEG to raise awareness and build capacity for listed companies on ESG reporting.
Related news categories: business economic-indicators psx stock-exchanges

Robust corporate results send PSX to record
Pakistan Stock Exchange (PSX) on Monday rose to a fresh record high during the corporate earnings announcement season, fueled by robust financial results and anticipation ahead of the State Bank of Pakistan’s (SBP) monetary policy announcement on April 29. In the morning, trading commenced at the intra-day low of 70,882.44 points, but soon the KSE-100 index recovered and moved upwards. The positive momentum was attributed to the government’s discussions about the privatisation of state-owned enterprises (SOEs), rupee stability amid foreign fund inflows and upcoming talks with the International Monetary Fund (IMF) for a new loan package. Consequently, the market crossed the 71,000-point barrier and reached its intra-day high of 71,861.18. Notably, oil and gas exploration, banking, fertiliser and cement sectors drove the index upwards. It closed the day near its peak with substantial gains. “Stocks closed bullish in an earnings season rally amid strong financial results and speculation ahead of the SBP policy announcement on April 29,” said Ahsan Mehanti, MD of Arif Habib Corp.
Related news categories: business economic-indicators psx stock-exchanges

March 2024 records highest-ever IT exports
In March 2024, ICT services export remittances surged to $306 million, a remarkable increase of 36% compared to $225 million in March 2023. “This is the highest ever export number in a single month, with the previous highest being $303mn in December 2023. The YoY jump in IT exports is due to firstly, relaxation in the permissible retention limit by the SBP, increasing it from 35% to 50% in the Exporters’ Specialised Foreign Currency Accounts, and secondly, a stable PKR currency, which encouraged IT companies to repatriate their foreign income and deposit it in local accounts,” said Topline Securities Research.
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ARL cuts output to 33% as smuggling bites
Attock Refinery Limited (ARL) has become the first victim of smuggled petroleum products as the refinery on Monday shut down its main distillation unit, reducing its capacity to only 33%, owing to the piling up of unsold diesel stocks. Oil industry sources warned that other refineries were also likely to close their units if the unbridled smuggling of petroleum products was not stopped. Oil smuggling into Pakistan has continued unabated and this oil is now available across the country. Industry officials said that smuggling and proposals of price deregulation without consultation with all stakeholders may put plant upgrade plans of refineries in jeopardy. For upgrading, they were expected to bring investments of $5-6 billion on the back of recent approval of a new policy.
Related news categories: business economic-indicators refinery

Auto industry demands urgent govt support
The local auto industry has urged the new government to promptly implement measures to support the sector and restore investor confidence in Pakistan. “Currently, as many as 13 local brands are collectively producing over 40 models with a total capacity of 500,000 units per annum,” stated Abdul Rehman Aizaz, Chairman of the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM). However, he noted, the significant increase in the imports of used cars is posing serious challenges to the sustainability of the local auto industry, which has invested approximately $2.5 billion and contributed around Rs400 billion in taxes in FY2022 alone. He lamented that this surge in used car imports continues to undermine the scale and potential of the local auto industry. “In FY2022, the local auto industry accounted for approximately Rs250 billion in local purchase value and generated about 2.5 million direct and indirect jobs within the country,” he added. “The import of an average of 3,000 used cars per month is currently pushing the growth of the local industry into negative territory (approximately 40%),” Aizaz explained.
Related news categories: auto-assembler business economic-indicators