Recent Financial News in the 'economic-indicators' category
Login or sign up to search news items.
Tuesday, March 26 2024
Stocks rebound on World Bank loan approval
Pakistan Stock Exchange (PSX) on Monday experienced a significant recovery, driven by the World Bank’s approval of $150 million project financing and completion of final review under the International Monetary Fund’s (IMF) $3 billion standby arrangement (SBA).
In the morning, the market saw a lacklustre start with the KSE-100 index touching the intra-day low of 65,301.73 points. However, investor sentiment turned positive as data revealed a current account surplus of $128 million in February alongside surging global crude prices and the rebound in Pakistani rupee following IMF’s initial approval of a $1.1 billion tranche.
The oil and gas exploration sector led the market’s gains on reports of government efforts to draw investment from friendly countries in Pakistan’s largest hydrocarbon explorer. Banking, fertiliser and power sectors also helped push the index upwards.
Eventually, the bourse reached the intra-day high of 65,656.49 points but closed more than 100 points below the peak.
Related news categories:
business
economic-indicators
psx
stock-exchanges
Stocks bounce back on foreign buying
Shrugging off overnight gloomy sentiments, the stock market on Monday staged a strong rebound aided by aggressive foreign buying indicating improved investor confidence in the economic direction of the country.
Ahsan Mehanti of Arif Habib Corporation said stocks showed strong recovery as investors weighed World Bank approval of $149.7 million project financing and release of $1.1 billion early next month as an outcome of the Staff-Level Agreement reached last week under the current $3bn Stand-By Arrangement which would also pave the way for inflows from other lenders and friendly countries.
He said the $128m current account surplus in February, higher global crude oil prices and the steady rupee also fuelled aggressive buying.
Topline Securities Ltd said the oil and exploration sector spearheaded the market gains following reports of the government’s intention to solicit investments from friendly nations for the nation’s largest hydrocarbon explorer. Consequently, Oil and Gas Development Company Ltd and Pakistan Petroleum Ltd attracted a buying interest pushing their scrips prices by 2.90pc and 1.66pc, respectively.
Related news categories:
business
economic-indicators
psx
stock-exchanges
SLG first logistics company to list on PSX
The Pakistan Stock Exchange (PSX) is gearing up to host its inaugural company of 2024 on its trading platform this week. Secure Logistics Group (SLG), the pioneering logistics entity to be listed at the national bourse, is slated to offer 50 million shares at a minimum (floor price) of Rs12 per share. The objective is to raise a minimum of Rs600 million through the book-building process, following the stabilisation of the volatile political and economic landscape post-February general elections and the recent achievement of an International Monetary Fund (IMF) staff-level agreement.
The company’s prospectus, available on the PSX website, articulates its primary goals for raising equity capital: to deleverage the balance sheet in a challenging high-interest rate environment, advance the company’s technological infrastructure to complete the Tech-Pivot initiative, expand into regional markets, and enhance fleet-related efficiencies.
According to existing laws, the share price can increase by a maximum of 40% to Rs16.80 per share from the floor during the two-day bidding, potentially attracting up to Rs840 million.
Related news categories:
business
economic-indicators
psx
stock-exchanges
Rupee appreciates slightly to 278.12/$
Pakistani currency notched up fresh gains for the eighth consecutive working day on Monday, rising to a new five-month high at Rs278.12 against the US dollar in the inter-bank market in the wake of higher supply of the foreign currency compared to its demand.
According to State Bank of Pakistan’s (SBP) data, the rupee inched up Rs0.02 on a day-on-day basis against the greenback.
The currency has cumulatively gained 10.41%, or Rs28.95, in the past six and a half months compared to the all-time low close of Rs307.10/$ recorded in the first week of September 2023. Exchange Companies Association of Pakistan (ECAP) reported that the local currency closed unchanged at Rs280.73/$ in the open market for the second successive working day.
Read Rupee surges to new five-month high at Rs278.14/$
Market talk suggests that achievement of a staff-level agreement with the International Monetary Fund (IMF) for the release of third and last loan tranche of $1.1 billion has encouraged other global financial institutions including the World Bank to unlock financing for different projects in Pakistan.
Related news categories:
business
economic-indicators
misc
Competitors raise concern over telecom merger
As one of the largest mergers in Pakistan’s telecom sector is underway, the Competition Commission of Pakistan (CCP) has said that the decision on acquisition of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL) could be delayed as competitors have expressed concern over the plan.
In a statement, the CCP said that a pre-merger application about PTCL’s intention to acquire 100% shareholding of Telenor Pakistan and Orion Towers was received on February 29, 2024.
However, the application was submitted with an incorrect fee and the remaining fee was sent to the commission on March 6, 2024. Later, to complete due diligence, further information was sought but PTCL’s legal teams had yet to submit the required information.
CCP pointed out that “after all the relevant documents and information is received, the commission has 30 working days to complete its due diligence, for the first phase review”.
Related news categories:
business
economic-indicators
psx
stock-exchanges
tech-comm
Related symbols:
ptc
(news
stock)