Wednesday, April 24 2024

Stocks turn in depressed performance
After scaling an all-time high overnight, the benchmark KSE 100 index faltered despite a positive start on Tuesday amid reports of oil refining units shutting down and Shanghai Electric Power’s withdrawal of an offer to buy K-Electric. Ahsan Mehanti of Arif Habib Corporation attributed the depressed market performance to the expectations of prudent SBP monetary policy announce­ment next week ahead of new IMF loan talks and strong opposition to the petroleum price deregulation model by the refineries which have started closing down their units amid storage constraints and weak sales due to rampant smuggling. He said there was uncertainty over Pakis­tan-US relations following the signing of trade pacts with Iran to increase bilateral annual trade volume to $10 billion over the next five years, dampening investor sentiments. Topline Securities Ltd said equities began the day on a positive note, with across-the-board buying in cyclical stocks, especially in the cement sector, in the backdrop of the current surplus of $619m and anticipation of inflation clocking in at 17-18pc for April.
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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.
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PIF, STC to form region’s biggest telecom tower firm
Saudi Arabia’s sovereign wealth fund PIF has agreed to buy a 51% stake in Telecommunication Towers Company Ltd (TAWAL) from STC Group, paving the way for the creation of the region’s largest telecom tower company, PIF and STC said on Monday. Under the agreement, PIF and STC will combine TAWAL and Golden Lattice Investment Company (GLIC) to set up a newly-formed company with around 30,000 mobile tower sites and estimated annual revenues of around $1.3 billion, they said in a joint statement. The combined new entity will be owned 54% by PIF and 43.1% by STC, while GLIC minority shareholders will own the remaining share capital. The deals, including the 51% stake sale for an expected cash consideration of 8.7 billion riyals ($2.32 billion) are expected to be completed in the second half of the year.
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Global firms vie to invest in airports
Reputable international companies have expressed interest in Pakistan’s desire to outsource airport management and their representatives are expected to arrive this month to review and discuss the proposal. Sources told The Express Tribune that Prime Minister Shehbaz Sharif recently took up the airport outsourcing matter in a meeting of the cabinet so that those could be managed more effectively. It was disclosed that the government of Pakistan was collaborating with potential investors as reputable international firms had expressed interest and planned to come on a trip to Pakistan within the current month. The cabinet was told that initial focus would be on Islamabad International Airport for its outsourcing while similar proposals for Lahore and Karachi airports were also under consideration. The government was planning to outsource the international airports of Lahore and Karachi in the second phase.
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Tariff commission vows to rectify anomalies
National Tariff Commission (NTC) Chairman Naeem Anwar has given assurances to businessmen that an NTC team in Islamabad will ponder over the issues highlighted by Karachi Chamber of Commerce and Industry (KCCI) and recommendations will be given to the government for rectifying them in the federal budget for 2024-25. Speaking at a meeting during his visit to the KCCI, he advised the chamber to submit details of all issues in writing along with budget proposals at the earliest, according to a statement issued on Monday. At the huddle, the businessmen pointed to the challenges like anomalies in import-cum-export tariffs, anti-dumping duties and other countervailing measures.
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