Recent Financial News
Login or sign up to search news items.
Tuesday, March 19 2024
Stocks eke out gains amid slow trading
The stock market turned in a cautious performance on Monday ahead of the monetary policy announcement as a result the benchmark index managed to post modest gains with a sharp contraction in the trading volume.
Topline Securities Ltd said the equities kicked off the week on a positive note as the benchmark KSE 100 index rose 332 to 65,148 points in early trade amid hopes of a positive outcome of the ongoing IMF final review under the current $3bn Stand-By Arrangement, which would pave the way for the release of last tranche of $1.1bn.
However, the uncertain interest rate outlook unsettled a section of investors who resorted to profit-taking at the day’s high level resultantly the index lost some of its initial gains.
The equity investors adopted a cautious approach ahead of the monetary policy announcement, which was to be unveiled later in the day. A majority of market pundits were expecting a status quo given the ongoing IMF review of the economy and spike in Ramazan-driven inflationary pressure.
Related news categories:
business
economic-indicators
psx
stock-exchanges
PSX bounces back on SBP, IMF optimism
Pakistan Stock Exchange (PSX) on Monday experienced a modest recovery, fueled by anticipation surrounding the State Bank of Pakistan’s (SBP) monetary policy announcement and optimism about the International Monetary Fund’s (IMF) final review under its standby arrangement (SBA).
In the morning, trading began on a positive note but the KSE-100 index soon plunged to the intra-day low at 64,811.92 points. Thereafter, it recovered rapidly and after frequent ups and down, the index reached the intra-day high at 65,148.36 points.
At that point, investors got an opportunity to opt for profit-taking over caution ahead of the monetary policy announcement scheduled for around 4pm. Resultantly, the bourse fell close to its intra-day low post-midday trading, slipping below the 65,000 mark.
Nevertheless, the market rebounded, propelled by surging global crude oil prices and strengthening of the Pakistani rupee, driven by optimism surrounding the IMF’s review for the release of $1.2 billion loan tranche. Fertiliser, banking and power sectors mainly contributed positively to the index.
Related news categories:
business
economic-indicators
psx
stock-exchanges
With fresh gains, rupee at 5-1/2-month high
Pakistani currency on Monday hit almost five-and-a-half-month high at Rs278.63 against the US dollar in the inter-bank market, maintaining its uptrend for the fourth consecutive working day amid talks with the International Monetary Fund (IMF) for the release of last loan tranche and for a new programme.
According to State Bank of Pakistan’s (SBP) data, the rupee appreciated 0.03%, or Rs0.11, against the greenback on a day-on-day basis compared to Friday’s close at Rs278.74/$.
The local currency has cumulatively strengthened 10.21%, or Rs28.47, in the past over six months compared to the all-time low of Rs307.10/$ touched in the first week of September 2023.
The Exchange Companies Association of Pakistan (ECAP) reported that the rupee remained stable at Rs281.20/$ in the open market for the second successive working day.
Related news categories:
business
economic-indicators
misc
Experts push for corporate farming
Industrialists and progressive growers have described corporate farming as a positive initiative aimed at revamping and promoting the agriculture sector of the country. They advocate for establishing market prices for seeds, urea, pesticides, and agricultural commodities, alongside providing subsidies to farmers.
Speaking to The Express Tribune, they highlighted the adverse impact of rising production costs and fluctuating crop prices on farmers’ livelihoods and the government’s reputation, emphasising the need for immediate attention to mitigate these challenges. They stressed the necessity for a green revolution to drive agricultural development in Pakistan, advocating for strategic crop selection based on land suitability.
With the ongoing decline in international wheat prices, they urged a shift towards cultivating commodities that Pakistan typically imports, such as palm oil, while also recommending a halt to sugarcane cultivation due to its high water consumption. Redirecting resources towards cultivating other valuable food crops, including cotton, was proposed as a proactive measure.
Related news categories:
business
chemical
economic-indicators
fertilizers
Over Rs4/unit power tariff hike sought
Consumers should brace themselves for another jolt in their electricity bills, as the Central Power Purchasing Agency (CPPA) has requested a tariff increase of Rs4.9917 per unit due to fuel charges adjustment (FCA) for February 2024.
Following a rise of over Rs7 per unit in January due to fuel adjustments, CPPA, representing Ex-Wapda Discos (XWDiscos), submitted a petition to the National Electric Power Regulatory Authority (NEPRA). It cited that the reference fuel charge for February was Rs4.4337 per unit, while the actual cost of energy delivered to Discos was Rs9.4254 per unit. The requested increase of Rs4.9917 per unit includes previous adjustments of Rs0.5484 per unit. If fully approved by NEPRA, this could burden electricity consumers with an additional Rs40 billion (FCA + General Sales Tax). NEPRA will hold a public hearing on March 28, 2024, to review the petition.
The breakdown of data reveals varying costs across different generation sources, from Rs1.3213 per unit for nuclear to Rs27.1968 per unit for electricity imported from Iran. No electricity was generated from High Speed Diesel and Furnace Oil during the month.
Related news categories:
business
economic-indicators
power-gen-dist