PSX holds ground amid cautious sentiment
Shares of 340 companies were traded. At the end of the day, 93 stocks closed higher, 233 declined and 14 remained unchanged. PHOTO: FILE
Listen to article
The Pakistan Stock Exchange (PSX) ended marginally higher on Tuesday as late-session selling pressure, driven by a bearish trend in global equities, a weakening rupee, and falling international crude oil prices capped earlier gains. The KSE-100 index opened on a positive note amid news of Finance Minister Muhammad Aurangzeb's reassurance to continue the IMF-guided reform agenda during the opening day of the World Bank Group's Spring Meetings.
The index hit an intra-day high of 119,217 points before profit-taking pulled it down to an intra-day low of 118,162 points. At the close of trading, the index stood at 118,430.35 points, reflecting an increase of 46.97 points or 0.04%. Traded volume and value remained strong, with 740.9 million shares exchanged and a total turnover of Rs30.5 billion.
According to Ahsan Mehanti of Arif Habib Corp, the market closed flat as late-session pressure weighed on sentiment. The downtrend was attributed to weakness in global markets, currency depreciation, and declining global crude oil prices. However, strong financial results supported the index.
Mehanti noted that reports of an expected easing in the State Bank of Pakistan's monetary policy, the government's resolve on US tariff issues, and the anticipated release of the IMF support tranche next month also contributed to the positive close.
Topline Securities, in its market review, stated that investor sentiment was supported by corporate earnings announced during the session, although activity remained subdued due to cautious trends in international markets.
The index's performance was largely underpinned by gains in Fauji Fertiliser Company, Engro Holdings, Habib Metropolitan Bank, AGP Limited, and Atlas Honda Limited, which collectively contributed 733 points, Topline added.
Investor participation remained robust, with 740 million shares traded and overall market turnover at Rs30 billion, the brokerage noted. Arif Habib Limited (AHL), in its commentary, observed that the index continues to trade within the "Tariff Gap," keeping the near-term outlook exposed to downside risks.
Among the top gainers, Fauji Fertiliser Company rose 4.9%, Habib Metropolitan Bank climbed 5.78%, and AGP Limited gained 7.25%. On the other hand, UBL fell 4%, Meezan Bank declined 3.26%, and Engro Fertiliser dropped 1.8%, acting as major drags on the index.
The Bank of Punjab shed 8.49% after announcing its 1QCY25 earnings per share (EPS) at Rs0.53, a 5% increase year-on-year. However, the absence of a dividend surprised the market, noted AHL. Engro Fertiliser also reported its 1QCY25 EPS at Rs2.17, down 63% year-on-year, alongside an interim cash dividend of Rs2.25 per share.
Additionally, the brokerage highlighted that Pakistan's headline inflation for April 2025 is projected to fall sharply to 0.45% year-on-year, a historic low, down from 0.69% in March, based on SBP data across various base years.
Ali Najib of Insight Securities described the session as a "Battle of Wills" between bullish and bearish forces, with both sides vying for dominance. Ultimately, the bulls gained the upper hand, albeit by a slim margin, as the index closed with a 47-point gain.
Najib added that the market opened on a positive note, buoyed by news of Finance Minister Aurangzeb's assurance to IMF Managing Director Kristalina Georgieva regarding Pakistan's commitment to IMF-guided reforms. This pushed the benchmark to an intra-day high of 119,217 before profit-taking dragged it down to a low of 118,162 points.
A total of 451 companies' shares were traded, of which 214 stocks closed higher, 196 fell, and 41 remained unchanged.
The Bank of Punjab led in volume with 116.7 million shares traded, falling Rs0.97 to close at Rs10.45. It was followed by Power Cement, which gained Rs0.72 to close at Rs14.26 on a volume of 67.9 million shares, and Pakistan International Bulk Terminal, which declined Rs0.66 to close at Rs9.92 on 58.8 million shares.
Foreign investors purchased shares worth Rs102.5 million during the day, according to data from the National Clearing Company of Pakistan Limited (NCCPL).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
World Bank seeks more transparency in debt practices
WASHINGTON: The World Bank said Thursday it is worried that some countries are less and less transparent about their public debt and use complex borrowing tools, making it harder to measure how much they owe. To remedy this the bank called for a fundamental change in the way debtor and creditor countries report and disclose debt. The worries concern in particular low-income countries that make increasing use of borrowing arrangements the bank considers opaque. These include private placements — a kind of funding round done not publicly but privately, central bank swaps, and collateralized transactions, the bank said in a report on debt transparency. The proportion of low-income countries publishing some debt data has grown from below 60 percent to more than 75 percent since 2020. But only 25 percent disclose loan-level information on new debt, the report states. And countries are now turning to local investors as they take on debt but not publishing numbers on these loans. 'Recent cases of unreported debt have highlighted the vicious cycle that a lack of transparency can set off,' said the World Bank's Senior Managing Director, Axel van Trotsenburg. In Senegal, for instance, an independent administrative court that serves as an auditor said in February the government debt in that African nation had risen to 99.67 percent of GDP — a rate one-quarter higher than what had been announced by the previous government. An IMF team that visited Senegal in March said officials had made false statements regarding budget deficits and public debt for the period 2019-2023.
Business Recorder
an hour ago
- Business Recorder
FBR officials: OICCI says concerned at proposed arrest powers
KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has expressed serious concerns over the proposed powers of arrest granted to Federal Board of Revenue (FBR) officials under the Finance Bill 2025-26, warning that the move has significantly undermined investor confidence, particularly among foreign stakeholders. In a letter addressed to Finance Minister Muhammad Aurangzeb, the OICCI expressed deep concern over proposed amendments in the Finance Bill 2025-26, relating to Section 37 AA of the Sales Tax Act, 1990, seeking to extend wide powers to the Inland Revenue officials relating to arrest/prosecution without necessary check and balance. The chamber criticized the provision for granting sweeping powers of arrest and prosecution to Inland Revenue officials without adequate checks and balances, which it believes could lead to misuse and harassment of businesses. Tax laws: PM directs formation of arrest powers review panel 'Local business leadership has also reacted very negatively to the proposed measure; however, this move has dented the confidence of the leadership of our 200-plus members belonging to over 30 countries,' Abdul Aleem Chief Executive and Secretary General OICCI said in the letter. He said that such arbitrary measures, without thorough consultation with key stakeholders or due consideration of its potential impact on the business environment, add to the negative perception of the country as a business-friendly destination for local and foreign investors. OICCI has also appreciated the timely intervention from Prime Minister, Mian Shehbaz Sharif, Finance Minister Muhammad Aurangzeb and senior members of Parliament in ensuring that such far-reaching and potentially disruptive proposals are not enacted without rigorous oversight and due diligence. He said there should be any consideration to retain this clause for exceptional circumstances, the OICCI looks forward to reviewing the specific safeguards proposed to prevent misuse. In the Chamber's view, at a minimum, explicit prior approval from the FBR Chairman should be mandated in any such extraordinary case involving the arrest of an alleged defaulter. The OICCI further emphasized its trust that the government leadership and relevant authorities including the FBR fully recognize the potential reputational damage that such unnecessary and excessive measures could cause to Pakistan's image as a welcoming and dependable destination for both foreign and domestic investors. The OICCI has also conveyed its concerns to FBR Chairman Rashid Mahmood Langrial and urged a reconsideration of the proposed clause. Copyright Business Recorder, 2025
Express Tribune
3 hours ago
- Express Tribune
Rs1.275tr loans signed to ease circular debt
Pakistan has signed term sheets with 18 commercial banks for a Rs1.275 trillion ($4.50 billion) Islamic finance facility to help pay down mounting debt in its power sector, government officials said on Friday. The government, which owns or controls much of the power infrastructure, is grappling with ballooning "circular debt", unpaid bills and subsidies, that has choked the sector and weighed on the economy. The liquidity crunch has disrupted supply, discouraged investment and added to fiscal pressure, making it a key focus under Pakistan's $7 billion IMF programme. Finding funds to plug the gap has been a persistent challenge, with limited fiscal space and high-cost legacy debt making resolution efforts more difficult. "Eighteen commercial banks will provide the loans through Islamic financing," Khurram Schehzad, adviser to the finance minister, told Reuters. The facility, structured under Islamic principles, is secured at a concessional rate of 3-month KIBOR, the benchmark rate banks use to price loans, minus 0.9%, a formula agreed on by the IMF. "It will be repaid in 24 quarterly instalments over six years," and will not add to public debt, Power Minister Awais Leghari said. Existing liabilities carry higher costs, including late payment surcharges on Independent Power Producers of up to KIBOR plus 4.5%, and older loans ranging slightly above benchmark rates. Meezan Bank, HBL, National Bank of Pakistan and UBL were among the banks participating in the deal. The government expects to allocate Rs323 billion annually to repay the loan, capped at 1.938 trillion rupees over six years. The agreement also aligns with Pakistan's target of eliminating interest-based banking by 2028, with Islamic finance now comprising about a quarter of total banking assets.
