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Business Recorder
8 hours ago
- Business
- Business Recorder
KSE-100 Index closes flat after volatile trading
The Pakistan Stock Exchange (PSX) witnessed volatile trading on Friday, as its benchmark KSE-100 Index swayed in both directions before closing the day nearly flat. The KSE-100 started the session positive, but soon witnessed selling pressure that put the index to an intra-day low of 119,872.16. However, the bulls regained momentum in the final hours and brought the index back to the green. At close, the benchmark index settled at 120,023.24, marginally up by 20.65 points or 0.02%. 'KSE-100 lndex after opening on a positive note, traded in positive zone during the most part of trading session on news that Trump administration has decided to exercise restraint and will decide on US action in Israel-Iran conflict within two weeks,' brokerage house Topline Securities said in its post-market report. 'However, due lack of confidence surrounding the conflict, KSE-100 Index came down during the latter hours of the trade to close on a flat note.' Top positive contribution to the index came from HUBC PA, SYS PA, UBL PA, OGDC PA, MLCF PA and PPL PA, as the cumulatively contributed 168 points to the index. Whereas top negative contribution to the index came from PKGP PA, TRG PA, FFC PA, PSEL PA, EFERT PA and MCB PA, as they cumulatively contributed 180 points to the index. On Thursday, the PSX experienced another downbeat trading day, with most key indices registering declines despite some individual company gains. The KSE-100 index dropped by 463.34 points or 0.38% to end the day at 120,002.59. Globally, share markets in Asia struggled for direction on Friday as fears of a potential U.S. attack on Iran hung over markets, while oil prices were poised to rise for a third straight week on the escalating Israel-Iran conflict. Overnight, Israel bombed nuclear targets in Iran, and Iran fired missiles and drones at Israel as a week-old air war intensified with no sign yet of an exit strategy from either side. The White House said President Donald Trump will decide in the next two weeks whether the U.S. will get involved in the Israel-Iran war. The U.S. President is facing uproar from some of his MAGA base over a possible strike on Iran. Brent fell 2% on Friday to $77.22 per barrel, but is still headed for a strong weekly gain of 4%, following a 12% surge the previous week. Still, a cautious mood prevailed in markets with Nasdaq futures and S&P 500 futures both 0.3% lower in Asia. U.S. markets were closed for the Juneteenth holiday, offering little direction for Asia. The MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1% but was set for a weekly drop of 1%. Japan's Nikkei slipped 0.2%. China's blue chips rose 0.3%, while Hong Kong's Hang Seng gained 0.5%, after the central bank held the benchmark lending rates steady as widely expected. In the currency markets, the dollar was on the back foot again, slipping 0.2% to 145.17 yen after data showed Japan's core inflation hit a two-year high in May, which kept pressure on the Bank of Japan to resume interest rate hikes. Investors, however, see little prospect of a rate hike from the BOJ until December this year, which is a little over 50% priced in. Meanwhile, the Pakistani rupee posted marginal decline against the US dollar, depreciating 0.02% during trading in the interbank market on Friday. At close, the local currency settled at 283.70, a loss of Re0.06 against the greenback. Volume on the all-share index decreased to 421.64 million from 604.54 million recorded in the previous close. The value of shares declined to Rs15.65 billion from Rs20.44 billion in the previous session. WorldCall Telecom was the volume leader with 42.79 million shares, followed by TRG Pak Ltd with 26.66 million shares, and Pervez Ahmed Co with 25.53 million shares. Shares of 468 companies were traded on Friday, of which 178 registered an increase, 245 recorded a fall, while 45 remained unchanged.
Business Recorder
3 days ago
- Business
- Business Recorder
Stock market slides
KARACHI: The Pakistan Stock Exchange (PSX) experienced a bearish close on Tuesday, as key benchmark indices retreated following a session primarily marked by declining scrips. The benchmark KSE100 Index shed 254.32 points, representing a 0.21 percent dip, to settle at 121,971.04 points. Throughout the day, the index saw fluctuations, reaching a high of 122,891.61 points before bottoming out at 121,815.39 points. BRIndex100 closed at 13,119.40, gaining 14.06 points or 0.11 percent with a total turnover of 846.78 million shares. On the other hand, BRIndex30 edged down by 12.07 points or 0.03 percent to close at 37,983.10. The total volume on BRIndex30 stood at 527.53 million shares. Topline Securities noted that the Pakistan Stock Exchange witnessed a volatile session on Tuesday, closely tracking global market cues. Amid growing geopolitical uncertainty surrounding tensions between Iran and Israel, investors remained cautious, leading to a lack of clear direction throughout the session, it added. Sentiment stayed fragile as the market struggled to find firm footing. On the upside, index-heavyweights UBL, HBL, SYS, and OGDC provided some support, jointly contributing 219 points. However, losses in PKGP, LUCK, ENGROH, and HUBC offset those gains, dragging the index down by a combined 291 points. Market sentiment was predominantly negative in the Ready Market, where 244 companies witnessed declines against 193 advances and 36 scrips remained unchanged, out of a total of 473 traded entities. Trading activity remained robust, though overall turnover saw a slight moderation from the previous day. Total turnover in the Ready Market stood at approximately 1.15 billion shares, down from 1.22 billion shares on June 16, yet it generated a higher traded value of roughly Rs 27.98 billion, compared to Rs 25.75 billion previously. This suggests higher-priced scrips saw increased activity. The market capitalization for the Ready segment experienced a contraction of approximately Rs 21.28 billion on Tuesday. It settled at approximately Rs 14.780 trillion, down from Rs 14.801 trillion on the previous trading day. WorldCall Telecom led the volumes chart with 239.76 million shares, closing at Rs 1.61. Pervez Ahmed Co followed with a turnover of 97.49 million shares, settling at Rs 3.88. Sui Southern Gas traded 49.86 million shares, ending the session at Rs 44.82. Notable performers by rate change in the Ready Market included Macter International Limited, which saw a significant increase of Rs 42.47 per share to close at Rs 467.18, and Mills Limited, which rose by Rs 39.02 to close at Rs 794.89. Conversely, PIA Holding Company LimitedB experienced a sharp decline of Rs 1700.02, ending at Rs 15300.17, while Khyber Textile Mills Limited decreased by Rs 158.06 to close at Rs 1457.04. The BR Automobile Assembler Index closed at 20,776.31 points, experiencing a net negative change of 20.06 points, or 0.1 percent, on a total turnover of 5.14 million shares. The BR Cement Index closed at 10,374.63 points, recording a net negative change of 64.29 points, or 0.62 percent, with a total turnover of 64.71 million shares. Conversely, the BR Commercial Banks Index concluded the session at 36,869.31 points, showing a positive change of 126.64 points, or 0.34 percent, and a total turnover of 127.86 million shares. The BR Power Generation and Distribution Index experienced a negative change of 532.89 points or 2.43 percent and finished at 21,412.27 points on a turnover of 24.19 million shares. Conversely, the BR Oil and Gas Index concluded the session at 11,726.24 points, registering a positive change of 14.63 points, or 0.12 percent, with a turnover of 82.58 million shares. The BR Technology & Communication Index also settled positively at 2,946.79 points, up by 13.67 points, or 0.47 percent, on a robust turnover of 294.99 million shares. According to Ahsan Mehanti of Arif Habib Corporation, PSX experienced a downturn, with stocks closing lower amidst a broader rout in global equities. This decline was primarily driven by geopolitical uncertainty and the State Bank of Pakistan's (SBP) status quo on the key policy rate, influenced by the inflationary impact of the ongoing Israel-Iran conflict. Further exacerbating the negative sentiment at PSX was a weakening rupee, fueled by Middle East tensions and rising imports. Copyright Business Recorder, 2025
Express Tribune
3 days ago
- Business
- Express Tribune
C/A slips back into $103m deficit
Listen to article Pakistan recorded a current account deficit of $103 million in May 2025, narrowing from a deficit of $235 million in the same month last year but reversing the $47 million surplus seen in April 2025. Although Pakistan posted a rare current account surplus of $1.8 billion during the first eleven months of FY25 — marking a significant turnaround from the $1.6 billion deficit recorded in the same period last yearexperts caution that underlying external sector vulnerabilities remain a cause for concern. "The trade deficit expanded in May 2025, increasing to $3.2 billion compared to $2.2 billion in the same period last year," wrote AHL. The overall trade balance posted a deficit of $27 billion in 11MFY25, up from $23 billion during the same period last year. "We expect the country to post a current account surplus of $1.6 billion in FY25 after 14 years," said the brokerage house. "This growth is mainly due to an increase in remittances by 26% year-on-year to $38.1 billion, in our view." The surplus was largely driven by a sharp 26% year-on-year jump in workers' remittances, which soared to $38.1 billion. This inflow has helped cushion the impact of a widening trade deficit, as goods imports surged by 11% to $54.1 billion, outpacing the modest 4% growth in goods exports that stood at $29.7 billion. Exports faced a fresh blow in May 2025, slipping by 19% year-on-year to $2.4 billion, while technology exports, once seen as a potential growth engine, edged down 1% to $329 million. This underperformance underscores Pakistan's struggle to diversify and expand its export base. Nasheed Malik of Topline Securities noted that Pakistan recorded monthly IT exports worth $329 million in May 2025, reflecting a slight decline of 1% year-on-year but an increase of 4% on a month-on-month basis. These exports were also higher than the 12-month average of $314 million. Notably, this marked the first year-on-year decline in IT exports after 19 consecutive months of growth. Export proceeds averaged $16.5 million per day in May 2025, up from $15.9 million in April 2025. Cumulatively, IT exports reached approximately $3.5 billion during 11MFY25, showing a strong 19% year-on-year increase. This impressive growth is attributed to several key factors: the expansion of Pakistani IT companies' client base globally, especially in the GCC region; the relaxation by the State Bank of Pakistan (SBP) of the permissible retention limit in Exporters' Specialised Foreign Currency Accounts from 35% to 50%; the allowance of equity investment abroad through these accounts; and the stability of the Pakistani rupee, which has encouraged exporters to repatriate a larger portion of their earnings. Pakistani IT firms have also been actively engaging with international clients, as demonstrated by their participation in major global events such as LEAP 2025 in Saudi Arabia and Web Summit Qatar 2025, said Malik. A significant development in FY25 is the SBP's introduction of a new category — Equity Investment Abroad (EIA) — specifically for export-oriented IT companies. Under this provision, IT exporters can now acquire equity stakes in foreign entities by utilising up to 50% of the proceeds from their specialised foreign currency accounts. This measure is expected to further boost the confidence of IT exporters and incentivise the repatriation of export earnings to Pakistan. Meanwhile, the services sector remains in deficit, posting a gap of $2.7 billion for the period, as service exports failed to offset persistent import demand. The primary income deficit, largely reflecting profit repatriation and interest payments on external debt, stood at a hefty $7.9 billion in 11MFY25. Adding to the concern is the sharp decline in foreign direct investment (FDI) inflows, which dropped to $1.98 billion, indicating foreign investors' cautious stance amid Pakistan's challenging economic and political landscape. Analysts warn that the recent surplus is not structural but cyclical, heavily reliant on remittances and import compression. "If imports rebound or remittance growth slows, the surplus could swiftly reverse," a market observer noted. The outlook for the external account remains uncertain, with potential risks stemming from volatile global oil prices and rising debt servicing needs, both of which could strain Pakistan's fragile external position. In May 2025, Pakistan's primary income deficit narrowed significantly by 47% year-on-year to $777 million, compared to $1,478 million in May 2024, largely due to the absence of hefty profit repatriation recorded in the same period last year. However, on a month-on-month basis, the deficit widened by 31%. Meanwhile, the balance on secondary income improved by 12% year-on-year, rising to $3.9 billion in May 2025 from $3.5 billion in May 2024, supported by strong inflows such as workers' remittances. On a month-on-month comparison, however, secondary income declined by 13% from $3.5 billion recorded in April 2025.
Arab News
13-06-2025
- Business
- Arab News
Pakistan stocks drop over 1,900 points amid Israel-Iran tensions
KARACHI: The Pakistan Stock Exchange (PSX) plunged more than 1,900 points on Friday, as investor sentiment soured following Israel's strikes on Iran, triggering fears of wider regional escalation. The benchmark KSE-100 index fell 1,949.56 points, or 1.57 percent, closing at 122,143.56, down from the previous close of 124,093.12. Shares traded largely in the red, mirroring losses across regional and global markets after the Israeli attacks shook investor confidence, according to a market review by Pakistani brokerage Topline Securities. 'Geopolitical tensions after Israel's attack in Iran weighed down on world equities, including the KSE100,' Raza Jafri, Head of Intermarket Securities, told Arab News. 'In particular, if a geopolitical risk premium gets added to international oil prices on a prolonged basis, it could negatively affect the outlook for the current account deficit and inflation, given more than 25 percent of Pakistan's import bill comprises of petroleum products.' He noted that Pakistan was now 'much more disciplined' economically, having avoided fuel subsidies and refrained from using foreign exchange reserves to support the currency. This, he said, would help the country better withstand a potential oil price shock than in the past. Ahsan Mehanti, Chief Executive of Arif Habib Commodities Ltd, said stocks declined across the board in response to the strikes. 'Slump in global equities on geopolitical risks and weakening rupee played catalyst role in panic selling at PSX,' he said. Israel launched strikes on Iran earlier on Friday, claiming Tehran was 'very close' to developing a nuclear weapon. The attacks reportedly targeted nuclear facilities, scientists, and senior military commanders.
Arab News
13-06-2025
- Business
- Arab News
Pakistan eyes over $6 billion in Saudi support as top foreign financier in FY26
KARACHI: Saudi Arabia is expected to be Pakistan's largest source of external financing in the upcoming fiscal year with over $6 billion in support as the South Asian country seeks to raise more than $20 billion from international lenders to uplift its fragile economy, official budget documents released this week showed. In the 2025–26 fiscal year starting July 1, Pakistan aims to secure $6.46 billion from Riyadh, including $5 billion in time deposits, $1 billion in oil on deferred payments, and $46.4 million in economic assistance, according to the budget documents. The financial support is intended to help stabilize the country's external account and meet its balance of payments needs. Islamabad has long relied on financial support from its Gulf and Chinese partners to shore up its foreign reserves and avoid default. In 2023, these inflows played a key role in helping Pakistan avert a sovereign debt crisis. 'The support from Saudi Arabia in the form of deposits and oil facility is undoubtedly the major source of the external stability,' said Shankar Talreja, head of research at Karachi-based Topline Securities. Pakistan's government unveiled a Rs17.6 trillion ($62 billion) federal budget on June 10, aiming to consolidate what it describes as fragile macroeconomic stability achieved under a $7 billion bailout loan from the International Monetary Fund (IMF). Notably, Pakistan has not earmarked a specific amount under the International Monetary Fund (IMF) in its external financing estimates for 2025-26. The country is currently operating under a 37-month IMF Extended Fund Facility approved last year. In total, Pakistan has budgeted for Rs5.78 trillion ($20.4 billion) in foreign assistance in FY26, including both loans and grants from bilateral and multilateral partners, to help shore up reserves and finance its current account. The country's total external receipts for the year are budgeted at Rs20.3 trillion ($71.9 billion). China, Pakistan's largest trading partner and longtime ally, is projected to be the second-biggest lender after Riyadh with $4.37 billion, including $4 billion in 'safe deposits,' a form of central bank support, and $37 million in economic assistance. 'China is a major bilateral partner… supporting Pakistan with both commercial loans and time deposits,' said Talreja. 'Both types are refinanced and renewed annually.' Pakistan's multilateral lenders include the Asian Development Bank (ADB), World Bank, Islamic Development Bank (IsDB), Asian Infrastructure Investment Bank (AIIB), and others such as the United Nations, OPEC Fund, and International Fund for Agricultural Development (IFAD). SMALLER LENDERS AND REMITTANCES Besides Saudi Arabia and China, Pakistan will also seek smaller amounts of aid and financing from countries including the United States, France, Germany, Denmark, Italy, Japan, and South Korea, according to the budget documents, which also list smaller expected inflows from Kuwait ($21.4 million) and Oman ($5.14 million). However, a long-delayed Saudi oil facility, initially expected last year, has yet to materialize. Media reports have suggested Riyadh has linked its final approval to progress on Saudi investment in Pakistan's Reko Diq copper and gold mining project. State media reported in September that Saudi Arabia had offered a 15 percent equity stake in the multibillion-dollar Reko Diq mine in Pakistan's southwestern Balochistan province. The project, one of the world's largest undeveloped copper-gold reserves, is operated by Canada's Barrick Gold. Islamabad also plans to raise $1.3 billion in commercial loans and $400 million through international bond issuances, though the finance ministry has not specified the sovereign guarantees or instruments. Finance Minister Muhammad Aurangzeb has separately said the government aims to issue Panda bonds, yuan-denominated debt instruments issued in China, to raise around $200 million from Chinese investors to boost foreign exchange reserves. In addition to official financing, Pakistan continues to benefit significantly from worker remittances, particularly from the Gulf region. According to the Pakistan Economic Survey 2024–25, released this week, Saudi Arabia accounted for $7.4 billion in remittances in the last fiscal year, about 25 percent of the national total. Remittances from all six Gulf Cooperation Council (GCC) countries — Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain — totaled $16.1 billion, or more than half of Pakistan's total remittance inflows in 2024. 'In the GCC region, expanding Saudi mega-projects led to higher migrant employment, further contributing to inflows,' the economic survey said. 'It's not just deposits and oil facilities helping Pakistan,' added Talreja. 'Remittances from Saudi Arabia alone are a quarter of Pakistan's total remittances.' 'Saudi Arabia is a key nation for Pakistan in terms of foreign inflows, whether in the form of remittances or economic assistance,' Sana Tawfik, head of research at Arif Habib Ltd. said.
