Friday, April 19 2024

Stocks close in red for third consecutive session
Despite massive foreign buying on Thursday, the stock market turned in a depressed performance amid the widening of the fiscal deficit and dismal auto sales data, forcing the benchmark KSE 100 index to close in the red for the third consecutive session. Ahsan Mehanti of Arif Habib Corporation said the market remained under pressure amid a slump in global crude oil prices and steady government treasury bond yields, which dimmed rate cut hopes. Automobile sales fell 38pc year-on-year in July-March, the fiscal deficit swelled to 7.4pc of GDP for FY24, and the weak rupee and SBP fines on blue-chip commercial banks for regulatory violations fuelled the bearish sentiments. However, the chief concern for the economic stakeholders remains the uncertainty about the outcome of the ongoing talks with the International Monetary Fund for a new, larger and longer Extended Fund Facility.
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Thursday, April 18 2024

Stocks extend losses on profit-taking
Pakistan Stock Exchange (PSX) on Wednesday continued its gradual movement towards south as investors opted for profit-booking after the market rose to its intra-day high above 70,700 points. As some investors were scared to invest at high levels, the market began the day on a negative note and the KSE-100 index dipped to the intra-day low of 70,037.28 points in the very first hour. Weak large-scale manufacturing (LSM) industries’ data that showed a negative growth of 0.51% for July-February 2023-24 dented the investors’ buying interest. Market sentiment received a hit over fears of a sticky high inflation, as projected by the International Monetary Fund (IMF). Global oil price surge forced investors to adopt a cautious approach. Furthermore, the rupee continued its downward trajectory over likely escalation in the Middle Eastern conflict, which pulled the currency down to almost four-week low against the US dollar in the inter-bank market.
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Stocks snap five-session record-breaking spree
Bulls tossed the benchmark index above the 71,000 barrier for the first time in the history of the Pakistan Stock Exch­ange (PSX) on Tue­sday, but the market came under selling pressure, snapping the five-day record-breaking spree amid uncertainty about the outcome of talks with the International Monetary Fund (IMF). In the preceding session, the index scaled an all-time high on prevailing optimism about the Saudi investment package as a high-level delegation led by the kingdom’s foreign minister arrived last night to expedite the investment commitments. However, Ahsan Meha­nti of Arif Habib Corpo­ration said the index closed in the red due to institutional profit-taking amid uncertainty over the outcome of IMF talks for a new bailout programme and mounting geopolitical tensions. He said the IMF conditions for tax policy reforms proposing excise duties on industrial units, weak glo­bal crude prices and a slump in global equities dampened investor sentiments.
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Cement bags must carry making, expiry dates: Comp­etition Commission of Pakistan
To enhance consumer protection and ensure transparency, the Comp­etition Commission of Pakistan (CCP) has pr­o­posed amendments to the Pakistan Stan­dard Specification for all five types of cement. In a policy note issued on Tuesday, the CCP has recommended a mandatory disclosure of manufacturing and expiry dates on cement packaging. Highlighting the significance of this recommendation, the CCP pointed out that cement’s hygroscopic nature makes it susceptible to strength loss after 4 to 6 weeks of storage. The absence of manufacturing and expiry dates on cement bags poses a consumer risk. It could lead to the purchase of expired products and compromise the integrity of construction projects. The policy note emphasises the need to align Pakistan’s standards with international labelling practices to ensure consistency and transparency in the domestic market. It also aims to address the disparity between domestic and export labelling requirements, thereby safeguarding the interests of local consumers.
Related news categories: business cement economic-indicators psx stock-exchanges

Wednesday, April 17 2024

PSX ends winning streak as investors pause
Pakistan Stock Exchange (PSX) on Tuesday recorded its first decline following six consecutive positive sessions over institutional profit-taking coupled with uncertainty surrounding talks with the International Monetary Fund (IMF) for a new loan programme and geopolitical tensions. Earlier, trading commenced on a robust note, with the KSE-100 index surging to the intra-day high of 71,092.61 points before midday. However, as the day progressed, the market began to decline due to a shift in investor sentiment, driven by several factors. These included IMF’s conditions for tax policy reforms, easing of international crude oil prices and a slump in global equities. Sectors like oil and gas marketing, power generation, fertiliser and cement came under selling pressure, which negatively impacted the overall market. Consequently, all earlier gains were erased and the index dipped to the intra-day low of 70,405.24 points before the end of trading. Despite posting losses, the bourse managed to stay above the 70,000 mark. “Stocks closed lower amid concerns over institutional profit-taking, uncertainty about the outcome of Pakistan-IMF talks for a new bailout programme and geopolitical tensions,” said Ahsan Mehanti, MD of Arif Habib Corp.
Related news categories: business economic-indicators psx stock-exchanges