Friday, December 20 2024

Stocks plunge nearly 4,800 points
Pakistan Stock Exchange (PSX) endured yet another day of massive selling on Thursday as it nosedived nearly 4,800 points – the largest single-day drop in the bourse's history. A highly volatile trading session left investors puzzled, which came after a recent prolonged record-breaking spree. The biggest single-day slump followed Wednesday's record fall of 3,790 points, when investors resorted to heavy profit-taking at significantly higher stock valuations. The intense selling pressure was fuelled by several domestic factors and was particularly pronounced in sectors like chemical, commercial banks, power generation and refineries. The KSE-100 index moved between the intra-day low of 105,937.37 points and the high of 111,745.03 points.
Related news categories: business economic-indicators psx stock-exchanges

Foreign currency reserves rise $31m to $12.08b
The foreign exchange reserves, held by the State Bank of Pakistan, rose $31 million to $12.08 billion in the week ended December 13, 2024, according to data released by the central bank on Thursday. With the fresh increase, Pakistan's total liquid foreign currency reserves reached $16.63 billion, reflecting the country's improving financial position that provided around three months of import cover. Out of the total deposits, commercial banks held reserves of $4.55 billion. In the precious metals market, gold prices fell, mirroring the decline in international markets. The price of bullion per tola dropped Rs2,600 and settled at Rs273,300, according to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).
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Oil edges higher on falling US inventories
Oil prices rose slightly on Thursday, supported by falling US crude inventories, though gains were limited after the US Federal Reserve signalled it would slow the pace of interest rate cuts in 2025, a move that could dampen economic growth, reduce fuel demand and strengthen the dollar. Brent crude futures rose 44 cents, or 0.60% to $73.83 a barrel by 1414 GMT. US West Texas Intermediate (WTI) crude for January delivery gained 68 cents, or 0.96%, to $71.26. The more active WTI contract for February rose 52 cents to $70.54. "The bottom line for oil is the longer the Fed stays on pause, the stronger the US dollar. This tends to generate headwinds for commodities like oil," said Harry Tchilinguirian at Onyx Capital Group. Official data from the Energy Information Administration on Wednesday showed US crude stocks fell by 934,000 barrels in the week to December 13.
Related news categories: business misc oilgas-exploration oilgas-marketing

Bagasse-based IPPs agree new deals
The cabinet has given the go-ahead for signing revised agreements with eight bagasse-based independent power producers (IPPs), owned by the ruling elite and political barons. According to the revised agreements, the IPPs will reduce their working capital component of tariff by 50% with effect from October 31, 2024. These agreements are estimated to lead to savings of Rs238 billion when operated at full load. The IPPs agreed to change their return on equity (ROE) and return on equity during construction (ROEDC) components of tariff to 17% per annum, calculated at the rupee-dollar exchange rate of 168, with no future dollar indexation, effective from October 31, 2024.
Related news categories: business economic-indicators power-gen-dist

Olive oil production target set at 4,600 tons
Pakistan Horticulture Development and Export Company (PHDEC) conducted a webinar on "Good Agricultural Practices of Olive for High Yield and Good Quality". Pakistan, which has a large area of land suitable for growing olive trees, has been producing olive since 2010. Currently, it produces about 861 tons of table olive per year, all of which is consumed domestically. Pakistan has set a target of producing 4,600 tons of olive oil by 2030 to substitute imports. The main areas fit for olive cultivation are Balochistan, Khyber-Pakhtunkhwa and Punjab, in addition to Azad Jammu and Kashmir and Gilgit-Baltistan. Pakistan has 10 million acres of land suitable for olive cultivation, which is almost twice as much as that in Spain, the world's largest olive oil producer. The webinar was held to educate olive growers and key farm workers.
Related news categories: business economic-indicators misc