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  • Weekly Review: IMF outcome to set market direction

    Weekly Review: IMF outcome to set market direction

    KARACHI: Pakistan stocks may depend on the outcome of talks between Pakistan authorities and the International Monetary Fund (IMF).

    Analysts at Arif Habib Limited said that a key event to look out for in the upcoming week is the Monetary Policy Committee (MPC) meeting of the State Bank of Pakistan (SBP) on May 23, 2022, whereby an increase of 100 basis points (bps) rate hike is expected.

    READ MORE: Pakistan stocks gain 117 points in lackluster session

    Whereas after verdict of the Election Commission of Pakistan (ECP), disallowing votes of 25 PTI MPA’s, political clouds will once again hover on the horizon.

    “We believe the market will only heave a sigh of relief once clarity emerges on the IMF program,” they said.

    READ MORE: Pakistan stocks gain 59 points in range bound trading

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 4.5x (2022) compared to Asia Pacific regional average of 12.3x while offering a dividend yield of 9.2 per cent versus ~2.8 per cent offered by the region.

    In the week commencing May 16, 2022, the bourse witnessed a steep fall on the back of investor’s concerns over outcome of the IMF program whereby the fuel and electricity subsidy remains a major hurdle in getting through.

    READ MORE: Pakistan stocks fall 819 points on rupee devaluation

    Whereas depleting foreign exchange reserves and rupee devaluating to an all time low level of PKR 201/USD together with the ongoing political upheaval also caused investor stampede.

    Furthermore, the country posted its highest ever oil import bill during April 2022. However, some positive to range bound sessions were also witnessed mid-week given finalization of estimated GDP growth by National Accounts Committee (NAC) for FY22 at 5.97 per cent (FY21: 5.74 per cent) and a 39 per cent MoM decline in current account deficit to $623 million during April 2022. The market closed in red at 43,101 points, shedding 386 points (down by 0.89 per cent) WoW.

    READ MORE: Weekly Review: Pakistan stocks witness 3% decline

    Sector-wise negative contributions came from i) Oil & Gas Exploration Companies (148 points), ii) Cement (110 points), iii) Commercial Banks (99 points), iv) Pharmaceuticals (36 points), and v) Technology & Communication (27 points).

    Whereas, sectors which contributed positively were i) Chemicals (66 points), ii) Fertilizers (19 points), iii) Engineering (15 points), iv) Paper & Board (13 points), and v) Automobile Assemblers (10 points). Scrip-wise negative contributors were LUCK (59 points), PPL (51 points), OGDC (43 points), MEBL (40 points) and MARI (36 points).

    Meanwhile, scrip-wise positive contribution came from EPCL (67 points), FFC (43 points), EFERT (15 points), PKGS (13 points) and NBP (13 points).

    Foreign selling was witnessed this week, clocking-in at USD 6.1 million compared to a net sell of USD 1.9 million last week.

    Major selling was witnessed in Fertilizer (USD 1.9 million) and Banks (USD 1.3 million). On the local front, buying was reported by Banks (USD 11.5 million) followed by individuals (USD 4.4 million).

    Average volumes clocked-in at 221 million shares (down by 19 per cent WoW) while average value traded settled at USD 31 million (down by 26 per cent WoW).

    Other major news: i) No raise in POL products’ prices for now: govt, ii) PTI govt procured $52bn loans; $36.05bn was repaid, iii) MSCI’s May SAIR results unveiled, iv) FBR body agrees to resolve ST refunds-related issues v) Hubco seeks exemption from application of IFRS-9 on behalf of all IPPs.

  • Pakistan stocks gain 117 points in lackluster session

    Pakistan stocks gain 117 points in lackluster session

    KARACHI: Pakistan stocks gained 117 points on Friday May 20, 2022 in lackluster session as investors’ participation remain dry.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed 43,100 points from last day’s closing of 42,983 points, showing a decline of 117 points.

    READ MORE: Pakistan stocks gain 59 points in range bound trading

    Analysts at Arif Habib Limited said that the PSX witnessed a lackluster session today as investor participation remained dry.

    The market opened by continuing weak momentum from the last trading session as investors opted to remain silent due to weakening of Pak rupee against US Dollars and build up political noise.

    READ MORE: Pakistan stocks fall 819 points on rupee devaluation

    Volumes remained dry in main board throughout the day although hefty volumes were witnessed in 3rd tier stocks.

    The Index closed at 43,100 points, up by 117 points (+0.27 per cent DoD). Sectors contributing to the performance include Banks (+39 points), Inv, Banks (+16.1 points), E&P (+14.2 points) and Cement (+10.0 points).

    READ MORE: Weekly Review: Pakistan stocks witness 3% decline

    Volumes increased from 187.1 million shares to 189.9 million shares (+1.5 per cent DoD). Average traded value decreased by 24.7 per cent to reach US$ 19.1 million as against US$ 25.4 million.

    Stocks that contributed significantly to the stocks are KEL, SILK, PAEL, PRL and WTL.

    READ MORE: Dollar makes fresh high at Rs194.18 at interbank closing

  • Pakistan going through tough period in 20 years: MD PSX

    Pakistan going through tough period in 20 years: MD PSX

    KARACHI: Farrukh H. Khan, MD and CEO of Pakistan Stock Exchange (PSX) on Tuesday May 17, 2022 said Pakistan going through poorer period as compared to the last 15-20 years.

    Talking as guest speaker at the CFO Conference 2022, he said that the role of corporate has changed throughout the decade.

    “Pakistan is going through yet another tough period, which has been poorer as compared to the last 15-20 years,” he added.

    READ MORE: Pakistan’s forex reserves fall to $16.37 billion

    Speaking about the economy, he said that what’s true at the micro-level is also true at the macro level as well. He further said that organizations need to be cognizant of ESG standards and sustainability strategies.

    “This conference makes us realize that it’s not enough to be a CFO, but now it has become vital to become a CVO. It’s significant to understand the impact of globalization, accelerating technology, and the requirement of different skill sets for new businesses and startups.”

    Khan emphasized that it is no longer sufficient to be a gatekeeper, and one must anticipate and guide change; be aware of who, how, and when someone will disrupt your business.

    READ MORE: Dollar makes new high Rs195.75 at interbank closing

    The company needs to understand ESG, both customer and capital providers, leadership, communication, empathy, and skill set requirements, which, in the knowledge economy are vital roles.

    The Professional Accountants in Business (PAIB) Committee of the Institute of Chartered Accountants of Pakistan (ICAP) organized CFO Conference 2022 on theme ‘Embracing the role as Chief Value Officer’.

    Ashfaq Yousuf Tola, President ICAP in his address welcomed the guests and congratulated the organizing committee, council members, sponsors and the participants.

    He said this event is worthwhile to attend as it gives 500 years of experience in a single day time. Tola emphasized that the entire world is moving very fast due to the technology advancement, owing to the Covid-19 crisis.

    READ MORE: Pakistan stocks gain 59 points in range bound trading

    He said that the economy is the key pillar of sustainability, and in order to have the value of ascertaining, one needs to be updated and make appropriate decisions towards sustainability.

    Paul Papadimitriou Founder & CEO of Intelligencr delivered a keynote speech on “A Peek into the World’s Financial and Economic Landscape”.

    He said that technologies always had a faster effect irrespective of whether a country is rich or poor as these are the opportunities to create value in an organization. Another asset that we have is our youth.

    Around 2.5 billion people are entering in middle class and around 1 billion women are new emerging workforce. Pakistan has a great potential to benefit from these faster dynamics as many rural areas is Pakistan are shifting into cities.

    READ MORE: ECC approves Rs55.48bn for price differential claims of OMCs

    Pakistan being a high potential country despite of the high inflation, is an opportunity for companies looking for outsourcing. CFOs need to be a transcendent leader who empower others in order to get maximum quality output. CFO should take younger people on board as they are looking at them for inspiration to bring value into an organization.

    Dr. Ahmad Junaid of KSBL, presented the CFO Survey 2022 result, the survey entailed collective insights from 300+ CFOs, Finance Directors, and Financial Controllers of diversified industries from within Pakistan. It will help businesses understand macroeconomic expectations, capital availability, tech perspective, workforce requirements and other pressing concerns in Pakistan to make informed decisions.

    The reason to conduct this survey is to reduce lack of communication among finance professionals. Some important facts shared are the figures of expected GDP of 4.1 per cent in the next year, inflation rate at around 11.5 per cent, Interest rate 12.5 per cent, and Exchange rate 192.6.

    Macroeconomic Expectations includes USD Open market rate will be around 200 and up. The survey also includes different aspects of industries like Cost factors, Industry-specific expectations, etc.

    The first panel discussion was held on CFOs role in ESG Led Value Creation. The panel discussion was moderated by Saad Faridi, FCA, CEO Tenaga Generasi Limited. The panelists of the discussion were Dr. Imran Ahmad Khan, CEO & MD, Bayer Pakistan, Shazad Dada, CEO UBL and Zubair Anwar Bawany, Deputy Executive Director SDG Country Lead, UN Global Compact Cities Programme.

    The session focused on ESG and its implications on the industry. The panelists were of the view that the CFO plays a very important role and sits in most of the committees of building strategy and it’s their responsibility to do something for our future generations.

    The session concluded with the message that we all will leave this world one day, so why not we start giving back to society today.

    The second panel discussion was held on Agile Organizations. The panel discussion was moderated by Tahir Sharif, FCA, Partner A F Ferguson & Co. accompanied by the Session Chair Khalilullah Shaikh, FCA Past President ICAP. The panelists of the discussion were Mr. Aamir Ghaziani FCA CFO, K-Electric, Atif Kaludi FCA Director Finance & CFO, Lucky Cement, and Ms. Nausheen Ahmedjee, FCA Head of People and Organization, Siemens Pakistan.

    The panelist shared their insights on what an agile organization should do for its employees in particular and society in general. The session concluded that Agile organization are more customer-focused and employee oriented. In such companies, employees feel empowered to make the decisions.

    Samiullah Siddiqui FCA Chairman PAIBC & Council Member ICAP in his address welcomed all the key note speakers, dignitaries and guests. He also thanked all the sponsors for coming forward in supporting CFO conference 2022 on much needed topic “Embracing the role as Chief Value Officer.

    An important session on ‘Becoming a Transcendent Leader’ was moderated by Irfan Chawala, FCA, Director/ CFO, Archroma. Syed Muhammad Taha, MD and CEO of Pakistan State Oil, was the guest. Taha stressed that the journey of becoming a successful leader starts from being an individual to someone who honors the whole team. He added that to become a successful CFO and later transform into a CEO, a good knowledge of technology and changing trends is mandatory.

    Eminent speaker with global recognition Kevin Dancey, CEO International Federation of Accountants, spoke virtually on CFO’s Agenda for Sustainability and Integrated Value Creation. He applauded the efforts of ICAP and stated that the commerce industry holds an important place in any country’s advancement.

    Iftikhar Hussain Arif, renowned Urdu Poet and Scholar litterateur was graced the occasion in Unwind session. He touched the participants with his thought provoking and soulful poetry and was given standing ovation by the participants.

  • Pakistan stocks gain 59 points in range bound trading

    Pakistan stocks gain 59 points in range bound trading

    KARACHI: Pakistan stocks gained 59 points on Tuesday in range bound trading owing to expected the prime minister’s address to the nation.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended 42,726 points from previous day’s closing of 42,667 points.

    Analysts at Topline Securities said that after yesterday’s sell off, Pakistan equities had a range bound day today on the backdrop of media news regarding PM address to the nation.

    READ MORE: Pakistan stocks fall 819 points on rupee devaluation

    Investors opted to stay sideline ahead of the aforesaid address as it is expected that PM may announce some tough decisions while taking nation into the confidence to curtail deterioration on the macro front.

    Initially, market carried forward yesterday’s bearish sentiment and opened on negative note where the KSE100 index made an intraday low at 42,607 points (-60 points; down 0.14 per cent).

    READ MORE: Weekly Review: Pakistan stocks witness 3% decline

    However, some buying interest has been witnessed at the aforesaid levels which supported the benchmark index to gain some ground and made an intraday high at 42,884 points (+217 points; up 0.51 per cent) before eventually closed at 42,726 points (+59 points; up 0.14 per cent) for the day.

    READ MORE: Dollar makes fresh high at Rs194.18 at interbank closing

    Tech, Banks and Fertilizer sector’s stocks contributed positively today to the benchmark index where TRG, UBL, HBL, FFC & DAWH added 75 points, cumulatively. On the flip side, LUCK, HUBC & MLCF have seen some profit taking as they lost 44 points collectively, today.

    Around 196 million shares traded today at the bourse while total value clocked in at Rs6.2 billion. WTL was the volume leader of the day with trading of 21.9 million shares in it, today.

    READ MORE: Stocks gain 588 points on record remittances

  • Pakistan stocks fall 819 points on rupee devaluation

    Pakistan stocks fall 819 points on rupee devaluation

    KARACHI: Pakistan stocks fell by 819 points on Monday owing to sharp decline in rupee value against the dollar.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 42,667 points from last Friday’s closing of 43,486 points, showing a decline of 819 points.

    READ MORE: Weekly Review: Pakistan stocks witness 3% decline

    Analysts at Arif Habib Limited said that the benchmark KSE-100 index witnessed a bloodbath session today, selling spree continued across the board which pulled the market in the deep red zone as prevailing political uncertainty and Pak rupee depreciation against USD stripped investors’ confidence which translated into panic selling.

    READ MORE: Dollar makes fresh high at Rs194.18 at interbank closing

    The Pakistan Rupee (PKR) lost Rs1.65 to end at Rs194.18, the historic low against the dollar, from previous close Rs192.53 in interbank foreign exchange market.

    Main board activity remained dull whereas, hefty volumes were observed in the 3rd tier stocks.

    READ MORE: Stocks gain 588 points on record remittances

    The Index closed at 42,667.32 points, down by 819.14 points (-1.88 per cent DoD). Sectors contributing to the performance include Banks (-171.9 points), Cements (-125.1 points), E&P’s (-110.1 points) and Technology (-108.1 points).

    Volumes increased from 208.1 million shares to 250.4 million shares (+20.3 per cent DoD). Average traded value also increased by 27.8 per cent to reach US$ 45.9 million as against US$ 35.9 million.

    Stocks that contributed significantly to the volumes are LOTCHEM, PRL, CNERGY, TELE and WTL.

    READ MORE: Stocks make slight gain amid rupee devaluation

  • Weekly Review: Pakistan stocks witness 3% decline

    Weekly Review: Pakistan stocks witness 3% decline

    KARACHI: Pakistan stocks recorded a three per cent decline during the week owing to massive decline in foreign exchange reserves.

    Analysts at Topline Securities said that the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) declined by 3 per cent on Week on Week (WoW) basis, this decline can largely be attributed to declining foreign reserves ($10.3 billion reserve with SBP as of May 6, 2022) and lack of clarity on government`s intent in implementing IMF`s demand on which the revival of Extended Fund Facility (EFF) program is contingent: removal of subsidy on petroleum products, increase in electricity tariff etc.

    READ MORE: Stocks gain 588 points on record remittances

    Lukewarm response from friendly country Saudia Arabia to official delegation from Pakistan, where the Kingdom reportedly tied $3 billion additional support to revival of IMF program, further dampened investor sentiment.

    READ MORE: Stocks make slight gain amid rupee devaluation

    Average traded volume and value for the week stood at 274 million shares and Rs.8.1 billion respectively.

    READ MORE: Stocks plunge 641 points on weak fiscal condition

    On flows end during the outgoing week individuals, mutual fund, insurance and foreign corporate net sold equities worth $7.55 million, $3.84 million, $3.03 million and $1.24 million as of yesterday, this selling was largely absorbed by banking sector as they purchased equities worth $12.27 million as of yesterday.

    READ MORE: Pakistan stocks gain 111 points in range bound trading

  • Stocks gain 588 points on record remittances

    Stocks gain 588 points on record remittances

    KARACHI: Stocks ended up by 588 points on Friday owing to record inflows of workers’ remittances in April 2022.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended 43,486 points from previous day’s closing of 42,898 points, showing a gain of 588 points.

    READ MORE: Stocks make slight gain amid rupee devaluation

    Analysts at Arif Habib Limited said that KSE-100 index opened in the positive zone today continuing the momentum from the last trading session.

    The benchmark KSE-100 index managed to remain in the green throughout the day as Pakistan has witnessed highest ever foreign remittances during April 2022 up by 12 per cent YOY giving the investors much needed confidence resulting into value buying across the board.

    READ MORE: Stocks plunge 641 points on weak fiscal condition

    Although, main board activity remained dull whereas hefty volumes were witnessed in the 3rd tier stocks.

    The Index closed at 43,486.46 points, up by 588.02 points (+1.37 per cent DoD). Sectors contributing to the performance include Banks (+136.1 points), E&P’s (+127.0 points), Cements (+46.7 points) and Autos (+46.6 points).

    READ MORE: Pakistan stocks gain 111 points in range bound trading

    Volumes decreased from 284.5 million shares to 208.1 million shares (-26.9 per cent DoD). Average traded value also decreased by 10.6 per cent to reach US$ 36.2 million as against US$ 40.5 million.

    Stocks that contributed significantly to the volumes are TREET, CNERGY, PRL, LOTCHEM and WTL.

    READ MORE: Pakistan stocks plunge 1,448 points amid panic selling

  • Stocks make slight gain amid rupee devaluation

    Stocks make slight gain amid rupee devaluation

    Pakistan’s stock market witnessed a marginal gain on Thursday, navigating challenges posed by the depreciation of the Pakistani Rupee against the US dollar.

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  • Stocks plunge 641 points on weak fiscal condition

    Stocks plunge 641 points on weak fiscal condition

    KARACHI: Pakistan stocks plunged 641 points on Wednesday owing to political and fiscal uncertainty.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) ended at 42,863 points from previous day’s closing of 43,504 points, showing a decline of 641 points.

    READ MORE: Pakistan stocks gain 111 points in range bound trading

    Analysts at Arif Habib Limited said that a bloodbath session was observed in the market today, despite opening in the positive zone the market failed to sustain as the continuation to fiscal and political uncertainty triggered the investor confidence resulting the market to close on a negative note.

    PSX witnessed profit selling across the board today due to further devaluation of Pak rupee against USD and tightening economic situation which pulled the KSE-100 index down to 1100 points giving the bears an upper hand.

    READ MORE: Pakistan stocks plunge 1,448 points amid panic selling

    The last trading hour witnessed value buying in cement stocks helping the index to recover modest gain with positive momentum.

    The session remained dull, on the contrary hefty volumes were observed in 3rd tier stocks.

    The Index closed at 42,863.15 points, down by 641.21 points (+1.47 per cent DoD). Sectors contributing to the performance include Banks (-110.0 points), Fertilizer (-71.2 points), Cement (-64.3 points), and Power (-50.9 points).

    READ MORE: Stocks plunge 409 points on interest rate hike reports

    Volumes increased from 233.9 million shares to 338.5 million shares (+44.8 per cent DoD). Average traded value also increased by 38.9 per cent to reach US$ 50.2 million as against US$ 36.1 million.

    Stocks that contributed significantly to the volumes are WTL, CNERGY, PAEL, PRL and TRG.

    READ MORE: Weekly Review: Eid holidays to allow one day trading

  • Pakistan stocks gain 111 points in range bound trading

    Pakistan stocks gain 111 points in range bound trading

    Pakistan stocks experienced a modest gain on Tuesday as the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) closed at 43,504 points, up by 111 points from the previous day’s close of 43,393 points. The market remained range-bound throughout the session, reflecting cautious investor sentiment amidst ongoing political and economic uncertainty.

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