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Bears hold sway at PSX as political tensions weigh

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  • KSE-100 index plunges 388.62 points to settle at 42,873.35.
  • Benchmark index falls below 43,000-point mark.
  • Uncertainty in international crude oil market also fuelled bearish momentum.

KARACHI: The bears maintained their control over the Pakistan Stock Exchange (PSX) on Tuesday, in line with the preceding session, as the market reacted to repercussions of political uncertainty.

In the backdrop of a worsening political scenario coupled with poor economic data as a result of the rising geopolitical tensions and commodity prices in the international market, the index fell below the 43,000-point mark.

At the close, the benchmark KSE-100 index plunged 388.62 points, or 0.90%, to settle at 42,873.35 points.

Political instability following the Opposition’s decision to submit the no-confidence motion against Prime Minister Imran Khan in the National Assembly Secretariat impacted the investment climate.

Uncertainty in the international crude oil market coupled with projections benchmark interest rate also fuelled the bearish momentum.

The State Bank of Pakistan (SBP) later after the session announced that the Monetary Policy Committee (MPC) has decided to hold the policy rate at 9.75% for the next six weeks.

Arif Habib Limited in its post-market commentary noted that a volatile session was observed today due to political unrest and an overheated commodities cycle.

“The market opened in the red zone and stayed under pressure throughout the day,” it said, adding that the cement sector stayed in the red zone due to mounting international coal prices.

Meanwhile, in the last trading hour, across the board selling was witnessed.

Sectors contributing to the performance included banks (-85.8 points), cement (-67.7 points), exploration and production (-62.1 points), power (-37.3 points) and oil marketing companies (-34 points).

Shares of 343 companies were traded during the session. At the close of trading, 102 scrips closed in the green, 223 in the red, and 18 remained unchanged.

Overall trading volumes dropped to 226.10 million shares compared with Monday’s tally of 236.88 million. The value of shares traded during the day was Rs7.12 billion.

TPL Corporation was the volume leader with 17.35 million shares traded, losing Re1 to close at Rs10.46. It was followed by Unity Foods with 17.18 million shares traded, losing Rs1.49 to close at Rs23.64, and Ghani Global Holdings with 16.90 million shares traded, losing Rs0.87 to close at Rs15.83.

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The total amount of Pakistan’s liquid foreign reserves is $15.95 billion.

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As of February 14, Pakistan’s total liquid foreign reserves were $15,947.9 million, with the State Bank of Pakistan’s (SBP) holdings being $11,201.5 million.

Official figures for the week ending February 14, 2025, show that the central bank’s liquid foreign exchange reserves rose by $35 million to $11,201.5 million.

Commercial banks maintained net foreign reserves of $4,746.4 million during the period under review, according to the breakdown of foreign reserves.

The nation’s total liquid foreign reserves as of the week ending February 07, 2025, were $15,862.6 million.

Of these, the central bank held $11,166.6 million in foreign reserves, while commercial banks kept $4,696 million in net reserves.

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In January 2025, RDA inflows reach 9.564 billion USD.

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Remittances under the Roshan Digital Account (RDA) increased from US $9.342 billion at the end of 2024 to US $9.564 billion by the end of January 2025.

The most recent data issued by the State Bank of Pakistan (SBP) revealed that remittance inflows in January totaled US$222 million, compared to US$203 million in December and US$186 million in November 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own a Non-Resident Pakistan Origin Card (POC), desire to engage in banking, payment, and investing activities in Pakistan using these accounts, which offer cutting-edge banking options.

Nearly 778,697 accounts were registered under the scheme by the end of January 2025, according to the data.

By the end of January, foreign-born Pakistanis had contributed US $59 million to Roshan Equity Investment, US $479 million to Naya Pakistan Certificates, and US $799 to Naya Pakistan Islamic Certificates.

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FBR lowers Karachi’s built-up structure property valuation rates

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A year-by-year breakdown of the depreciation value of residential and commercial built-up properties is included in the updated property valuation rates for Karachi that the FBR has announced.

The notification said that built-up structural values on residential property will be gradually reduced.

A residential home’s built-up structure, which is five to ten years old, will lose five percent of its worth.

In a similar vein, constructions between the ages of 10 and 15 will lose 7.5% of their value, while those between the ages of 15 and 25 would lose 10%. Built-up structures that are more than 25 years old will be valued similarly to an open plot.

Furthermore, age will also be used to lower the valuation of built-up properties, such as apartments and flats.

Structures that are five to ten years old will depreciate by ten percent, while those that are ten to twenty years old will depreciate by twenty percent. A 30% depreciation will be applied to properties that are 20 to 30 years old, while a 50% reduction will be applied to those that are above 30 years old.

In terms of commercial built-up properties, buildings that are 10 to 15 years old will lose 5% of their value, while those that are 15 to 25 years old will lose 8%. The value of properties that are more than 25 years old will drop by 10%.

In contrast, there would be a 15% boost in the value of commercial properties in the Defence Housing Authority (DHA) that face any Khayaban.

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