Friday, September 13 2024

Stocks rally ahead of interest rate cut
Shrugging off overnight gloomy conditions stemming from mounting political tensions and a delay in loan approval by the IMF board, the equities staged a recovery ahead of the announcement of an anticipated cut in the interest rate, propelling the index above 79,000 on Thursday. Ahsan Mehanti of Arif Habib Corporation said stocks closed bullish amid speculations over SBP key policy rate announcement. He said a steady rupee, falling inflation, surging remittances and exports, and an expected resolution of the external financing gap for securing IMF’s board approval for a 37-month $7bn Extended Fund Facility boosted investor confidence. In its review, Topline Securities observed that contrary to the overnight bearish trend, stocks began trading on a bullish note ahead of the SBP’s Monetary Policy Commit­tee meeting, scheduled for an announcement later in the evening.
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Thursday, September 12 2024

PSX tumbles by 634 points on investor caution
The Pakistan Stock Exchange (PSX) experienced a sharp decline on Wednesday, with the KSE-100 index plummeting by 634.94 points amid growing political uncertainty and cautious investor activity ahead of the State Bank of Pakistan's (SBP) upcoming policy announcement. The trading day started on a positive note, with the KSE-100 index hitting an intraday high of 79,507.17 points. However, market optimism quickly faded as bearish forces gained momentum. Political instability, weak global equities, and investor concerns over legislation related to the privatisation of state-owned enterprises (SOEs) and the terms of a new International Monetary Fund (IMF) programme, particularly restrictions on new Special Economic Zones (SEZs), weighed heavily on sentiment. Profit-taking in key sectors such as exploration and production (E&P), banking, and fertilisers added to the market's woes. As a result, the index dipped below the 79,000 mark, reaching a low of 78,612.16 points before closing at 78,651.79.
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Stocks tumble on political noise, IMF condition
On the eve of a crucial monetary policy decision for the next two months, the stock market faltered on renewed fears of political uncertainty and a new IMF condition, pushing the KSE index below 79,000 amid aggressive foreign selling on Wednesday. Ahsan Mehanti of Arif Habib Corporation said stocks closed sharply lower on political uncertainty and cautious activity ahead of the State Bank of Pakistan’s monetary policy announcement amid high expectations of a third straight but significant cut in the policy rate, which trade and industry players believe is direly needed to revive economic activities. He added that weak global equities, uncertainty over legislation ahead of privatisation of state-owned enterprises and concerns over the new IMF condition of putting a bar on new industrial, special economic and export processing zones, dep­ressed the investor sentiments about the economic outlook.
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Wednesday, September 11 2024

Equities stage 671-point rally on value-hunting
Despite heigh­tened political tensions amid persisting unce­r­tainty over IMF loan appr­oval, the robust remittances, falling global crude oil prices and a likely third straight cut in interest rate boosted market sentiments, tossing the KSE benchmark index above 79,000 barriers on aggressive mid-session value-hunting. Topline Securities Ltd said institutional buying in blue-chip stocks drove the market’s upward momentum. Key heavyweights, such as Engro Fertiliser, United Bank, Bank Alfalah, Lucky Cement, and Habib Bank saw significant gains in their share prices, contributing 367 points to the index’s rise. Investor interest was notably strong in the cement sector, ahead of the upcoming monetary policy meeting on Sept 12, where a rate cut is widely anticipated.
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Tuesday, September 10 2024

Political worries, global equity slump hit PSX
Pakistan Stock Exchange (PSX) on Monday faced a downward trajectory amid volatile trading as the KSE-100 index dipped over 280 points, following a broad slump in global equities and political instability worries. In the morning, the index kicked off trading on a promising note, reaching its intra-day high of 79,214.27 points. However, the early optimism quickly vanished when the bourse reversed course and fell sharply. The downward streak was triggered by uncertainty about the International Monetary Fund's (IMF) approval of Pakistan's Rs2.8 trillion funding plan to address the circular debt crisis. Additionally, investor caution ahead of the potential policy rate reduction by the State Bank of Pakistan (SBP) later in the week exacerbated the bearish activity.
Related news categories: business economic-indicators psx stock-exchanges