Tuesday, December 10 2024

PSX's unstoppable rally continues
Pakistan Stock Exchange (PSX) on Monday surged to another record high as the KSE-100 index gained over 900 points, powered by extensive institutional buying and widespread optimism about the policy rate reduction in the upcoming monetary policy announcement. In the morning, the market opened with negative sentiment due to concerns over the advance-to-deposit ratio (ADR) condition for banks, which caused a decline of 1,424 points in the index. However, when local institutions entered the market, it moved into the positive territory and reached the intra-day high of 110,359 points before the close of trading. The rally was driven by the decline in government bond yields, speculation about a larger policy rate cut by the State Bank of Pakistan (SBP) and the stabilising rupee. Analysts highlighted that a rise in global crude oil prices further fuelled investor optimism.
Related news categories: business economic-indicators psx stock-exchanges

PAF to buy PIA engineering unit for Rs6.5b
The government has decided to sell a business unit of Pakistan International Airlines (PIA) to the Pakistan Air Force for Rs2.5 billion in cash, which is equal to one-fourth of the price that a sole bidder offered for acquiring 60% shares in the national flag carrier. The total sales value of Precession Engineering Complex (PEC) is Rs6.5 billion, including Rs4 billion in pensions-related liabilities of its current and retired employees, a senior government official told The Express Tribune. PEC is a business unit of PIA that manufactures high-precision parts for the aerospace industry and a number of other industries. Government sources said that a ministerial committee had already approved the transfer of PEC to PAF at a total price of Rs6.5 billion. A formal summary is now being moved for approval of the federal cabinet, they added.
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Related symbols: PIAHCLA (news stock)

KSE-100 nears 110,000-point mark as shares at PSX trade in green for 9th consecutive session
The Pakistan Stock Exchange (PSX) maintained a bullish momentum for a ninth consecutive session on Monday as shares gained 916.43 points to make the market near 110,000. The benchmark KSE-100 index closed at 916.43 points up, or 0.84 per cent, to stand at 109,970.38 points from the previous close of 109,053.95. In the past two weeks, the PSX has witnessed as many record single-day gains. Extensive mutual fund buying during the outgoing week sent the index soaring by a record point-wise weekly gain of 7,697 points. Yousuf M. Farooq, research director at Chase Securities, noted: “Interest rates, which were at an all-time high, have now returned to more normal levels. This shift has rapidly brought stock valuations to more reasonable levels.”
Related news categories: business economic-indicators psx stock-exchanges

Monday, December 09 2024

Stocks post record weekly gains of 7,697 points
Robust economic data amid an easing of political noise, the stock market maintained its record-setting streak by turning in a stellar performance on extensive mutual fund buying that sent the index soaring by a record point-wise weekly gain of 7,697 points in the outgoing week. Arif Habib Ltd said the market surged to a record high of 109,478 points, driven by improved inflation data, which dropped to 4.9pc, the lowest level since April 2018. Additionally, Saudi Arabia extended a $3bn deposit with Pakistan for another year to support its economy, providing further momentum to the index. Furthermore, Pakistan has converted seven out of the 37 MoUs signed with Saudi Arabia into formal contracts worth $560m on Monday. During the week, PSX held an auction of Ijarah Sukuk in which the government raised Rs353bn against a target of Rs500bn. Additionally, petroleum sales clocked in at a 25-month high of 1.58m tonnes, up 15pc, and the total cement despatches were up by 6pc year-on-year to 4.15m tonnes in November.
Related news categories: business economic-indicators psx stock-exchanges

Friday, December 06 2024

Stocks continue to shatter records
Pakistan Stock Exchange (PSX), while shattering records, set an unprecedented pace of rapid growth as the KSE-100 index surged a massive 3,134 points on Thursday, surpassing the 108,000 mark. The rally was powered by a combination of positive economic indicators and investor optimism. The annual inflation rate fell to 4.9% in November, its lowest level in six years, while the trade deficit shrank 19% year-on-year (YoY) to $1.59 billion. Those developments sparked hopes for a current account surplus and further strengthened confidence in the market's future. The rally was broad-based, with strong gains across key sectors including energy, fertiliser and commercial banks. Major companies in those sectors played a pivotal role in driving the market forward. Analyst Tahir Abbas commented that the PSX achieved another milestone as market activity surged to a 19-year high and the traded value touched Rs63 billion, or $227 million. It marked the highest activity in the regular market since April 17, 2006.
Related news categories: business economic-indicators psx stock-exchanges