Pkrevenue.com

Author: Faisal Shahnawaz

  • Weekly Review: stock market likely to stay positive

    Weekly Review: stock market likely to stay positive

    KARACHI: The stock market likely to stay positive in the coming week owing to expectation of ease in money market yields.

    Analysts at Arif Habib Limited said that the market to remain positive in the upcoming week.

    With recent injection by the State Bank of Pakistan (SBP) via Open Market Operation (OMO) for 63 days, money market yields are expected to come down further.

    READ MORE: Stocks gain 169 points on SBP’s OMO

    This is most likely to reignite investors’ interest in the stock market. Furthermore, scrips have opened up to attractive valuations.

    Moreover, mini budget expected to be announced soon, where the market is expected to react to any introduction, re-imposition or removal of duties and subsidies.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 4.7x (2022) compared to Asia Pac regional average of 14.9x while offering a dividend yield of ~8.8 per cent versus ~2.2 per cent offered by the region.

    The market commenced on a negative note amid anticipation of a massive hike in policy rate. Moreover, expectation of announcement of mini-budget further dented the sentiment.

    However, market recovered post Monetary Policy announcement as clarity was provided by the SBP in its forward guidance suggesting no further hike in near-term.

    READ MORE: Key policy rate goes up to 9.75%; SBP raises 250bps in less than month

    Along with this, SBP also disclosed that it is close to achieving mildly positive real interest rate, which further boosted investor sentiment (index going up by 1,200 points on Wednesday). 

    In addition, on the external front, growth in remittances by 9.7 per cent to USD 12.9 billion in 5MFY22 was a positive development. However, bears returned as investors resorted to profit taking.

    READ MORE: Pakistan’s remittances fall by 6.6% in November 2021

    Furthermore, the USD/PKR Parity witnessed another all-time low of PKR 178.04. The market closed at 43,901 points, gaining 505 points (up by 1.2 per cent) WoW.

    READ MORE: Dollar hits record high of Rs178.04 at interbank closing

    Sector-wise positive contributions came from i) Cement (282 points), ii) Technology & Communication (173 points), iii) Textile Composite (74 points), iv) Engineering (70 points), and v) Refinery (50 points). Whereas, sectors which contributed negatively were i) Commercial Banks (208 points) and ii) Fertilizer (17 points). Scrip-wise positive contributors were TRG (112 points), LUCK (111 points), MLCF (45 points), SYS (43 points) and CHCC (36 points). Meanwhile, scrip-wise negative contribution came from MCB (71 points), UBL (63 points) and MEBL (29 points).

    Foreign selling continued this week, clocking-in at USD 3.5 million compared to a net sell of USD 0.99 million last week. Major selling was witnessed in Cements (USD 1.9 million) and Technology and Communications (USD 1.9 million). On the local front, buying was reported by Companies (USD 5.1 million) followed by Individuals (USD 2.7 million). Average volumes clocked-in at 265 million shares (up by 30 per cent WoW) while average value traded settled at USD 84 million (up by 13 per cent WoW).

  • Stocks gain 169 points on SBP’s OMO

    Stocks gain 169 points on SBP’s OMO

    KARACHI: The stocks gained 169 points on Friday owing to injection of liquidity by the State Bank of Pakistan (SBP) via Open Market Operation (OMO) for 63 days at 9.9 per cent, a signal of stability

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 43,901 points as against previous day’s closing of 43,731 points, showing an increase of 169 points.

    Analysts at Arif Habib Limited said that the KSE-100 index closed in the green zone as the market celebrated SBP injection of liquidity via OMO for 63 days at 9.9 per cent, a signal of stability.

    Market stayed volatile in the first hour of opening due to declining foreign exchange reserves and FTSE rebalancing, expectation of foreign selling spree. Soon after OMO injection news clocked in, a bullish trend was observed mainly in the cement and steel sector.

    Main board activity remained gloomy. On the flip-side, activity continued to remain side-ways as the market witnessed hefty volumes in the 3rd tier stocks.

    Moving forward, economic numbers like CPI, CAD, FX reserves along with timing of IMF program resumption will play a vital role in shaping the direction of the market.

    Sectors contributing to the performance include Cements (+70 points), Commercial Banks (+60 points), E&P (+35 points) and Technology & Communication (+28 points).

    Volumes decreased from 312.1 million shares to 252.2 million shares (-19.2 per cent DoD). Traded value also decreased by 20.4 per cent to reach US$ 45.2 million as against US$ 56.9 million.

    Stocks that contributed significantly to the volumes include WTL, HUMNL, TELE, TRG and BYCO.

    KSE-100 index falls by 636 points on profit taking
  • SBP issues KIBOR rates on December 17, 2021

    SBP issues KIBOR rates on December 17, 2021

    KARACHI: State Bank of Pakistan (SBP) on Friday issued the Karachi Interbank Offered Rates (KIBOR) as of December 17, 2021.

    Following are the latest KIBOR rates:

     TenorBIDOFFER
    1 – Week9.8410.34
    2 – Week9.8910.39
    1 – Month9.9810.48
    3 – Month10.3210.57
    6 – Month11.1211.37
    9 – Month11.1911.69
    1 – Year11.2411.74
    SBP issues KIBOR rates on December 16, 2021
  • Dollar hits record high of Rs178.04 at interbank closing

    Dollar hits record high of Rs178.04 at interbank closing

    KARACHI: The US dollar breached the level of Rs178 on Friday due to mounting demand for the foreign currency for import payments.

    The Pak Rupee (PKR) ended at Rs178.04 to the dollar from the previous day’s closing of Rs177.98 in the interbank foreign exchange market.

    Currency experts said that dollar demand for import and corporate payments remained high during the day. They said that dollar demand for import and corporate payments remained high due to the closing of the year.

    READ MORE: Dollar maintains record high level at Rs177.98

    They said that the measures taken by the State Bank through tightening of monetary policy has failed to support the rupee.

    The State Bank of Pakistan (SBP) on December 14, 2021 announced a monetary statement and increased the key policy rate by 100 basis points to 9.75 per cent. The SBP increased the policy rate by 250 basis points in less than a month to support the local currency by reducing the demand.

    READ MORE: Rupee falls to new record low despite policy rate hike

    The dealers said that there was no letup in import payment. The import bill of the country surged by 69.17 per cent to $33 billion during the first five months (July – November) 2021/2022 as compared with $19.47 billion in the corresponding months of the last fiscal year.

  • Pakistan’s foreign investment surges by 73% in 5 months

    Pakistan’s foreign investment surges by 73% in 5 months

    KARACHI: Pakistan’s total foreign investment surged by 73 per cent during the first five months of the current fiscal year, according to data released by the State Bank of Pakistan (SBP) on Friday.

    The total foreign investment increased to $455.5 million during July – November 2021/2022 as compared with $263.4 million in the same period of the last fiscal year.

    The total foreign private investment registered a growth of 1.8 per cent to $534 million during the first five months of the current fiscal year as compared with Rs525 million in the same period of the last fiscal year.

    Out of total foreign private investment, the Foreign Direct Investment (FDI) registered a growth of 12.3 per cent to $797.7 million during the first five months of the current fiscal year as compared with $710 million in the corresponding period of the last fiscal year.

    The other component of the foreign investment, the portfolio investment registered a decline of 42 per cent. The portfolio investment recorded an outflow of $263 million during the first five months of the current fiscal year as compared with the outflow of $185.5 million in the corresponding period of the last fiscal year.

    The foreign public investment recorded an increase of 70 per cent due to decline in outflow of investment against debt securities. The outflow in debt securities recorded $79 million during July – November of fiscal year 2021/2022 as compared with the outflow of $261 million in the same period of the last fiscal year.

    Total foreign investment surges by over 98pc in 10 months
  • Customers’ exchange rates on December 17, 2021

    Customers’ exchange rates on December 17, 2021

    Karachi, Pakistan – On Friday, the State Bank of Pakistan (SBP) unveiled the official exchange rates for December 17, 2021, providing customers with essential information based on the weighted average rates of commercial banks.

    (more…)
  • Employers criticize increase in key policy rate

    Employers criticize increase in key policy rate

    Karachi: Employers have strongly criticized the State Bank of Pakistan (SBP) for recent increase in policy rate amid rising inflation.

    (more…)
  • NKATI expresses concerns over gas disconnection

    NKATI expresses concerns over gas disconnection

    KARACHI: Faisal Moiz Khan, President, North Karachi Association of Trade & Industry (NKATI), while expressing deep concern over the gas disconnect of non-export, general industries, has demanded the government to continue gas supply with required pressure to industries.

    In a statement, Faisal Moiz Khan said that Karachi should not be punished for paying 54 per cent of the country’s exports and 70 per cent of its revenue. If SSGC disconnects the gas supply to non-export, general industries then factories will be locked and the SME sector will be destroyed.

    “Karachi has always played a vital role in the development of the country and is still playing a positive role in spite of all difficulties, be it for strengthening the national economy or promoting exports and providing vast employment opportunities”, he added.

    He raised the question of where is the wisdom to shut off the gas of ordinary industries? The SSGC has no authority to disconnect industrial gas. On the contrary, the government should help the industries to survive in the corona economy so that the country can get back on its feet economically.

    NKATI president further said that where is the justice for Sindh not getting gas? Sindh has the first right to the gas reserves of Sindh. Therefore, first of all, while fulfilling the gas needs of the people of the province, gas should be supplied to all industries with full pressure without any discrimination and then the remaining gas to be given other provinces.

    Faisal Moiz Khan stated that the industrial community would not tolerate this injustice under any circumstances. The government should stop discriminating against Karachi and the resources of the province should be utilized to meet the needs of the province.

    SITE industrialists condemn gas suspension
  • KSE-100 index falls by 636 points on profit taking

    KSE-100 index falls by 636 points on profit taking

    KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) fell by 636 points on Thursday owing to profit taking seen during the day.

    The index closed at 44,731 points as against previous closing of 44,367 points showing a decrease of 636 points.

    Analysts at Arif Habib Limited said that bears ruled over the bulls today as disappointment occurred from the auction of market treasury bills where cut-off yields remained flat across all tenors.

    Market opened on a bleak note as investors opted for profit booking but were unable to sell in the green zone.

    OGMCs sector remained under pressure as petrol price decreased by 3.4 per cent to PKR 140.82/liter, causing inventory loss to oil and gas marketing companies.

    Pharma sector stayed in the red zone as proposal on the cards of applicability of sales tax on the import of pharmaceutical active ingredients and local supply of medicines. Main board activity remained dull.

    On the flip-side, activity continued to remain side-ways as market witnessed hefty volumes in the 3rd tier stocks.

    Sectors contributing to the performance include Commercial Banks (-199 points), Cement (-116 points), Fertilizer (-65 points), E&P (-64 points) and OMC’s (-44 points).

    Volumes decreased from 398.1 million shares to 312.1 million shares (-21.6 per cent DoD). Traded value also decreased by 13.1 per cent to reach US$ 56.9 million as against US$ 65.5 million.

    Stocks that contributed significantly to the volumes include WTL, TELE, BYCO, TRG and UNITY.

    KSE-100 index gains 1,120 points on institutional buying
  • Pakistan’s forex reserves fall to $25.028 billion

    Pakistan’s forex reserves fall to $25.028 billion

    KARACHI: Pakistan’s foreign exchange reserves declined by $123 million to $25.028 billion by the week ended on December 10, 2021, the State Bank of Pakistan (SBP) said on Thursday.

    The foreign exchange reserves of the country were $25.151 billion by the week ended December 03, 2021.

    The official reserves of the State Bank came down by $90 million to $18.568 billion by the week ended December 10, 2021 as compared with $18.658 billion a week ago.

    Similarly, the foreign exchange reserves held by commercial banks fell by $33 million to $6.46 billion by the week ended December 10, 2021 as compared with $6.493 billion a week ago.

    SBP’s forex reserves increase to $18.658 billion