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Bears hold sway at PSX as political tensions weigh

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3 years ago

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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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In interbank trade, the Pakistani rupee beats the US dollar.

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5 days ago

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In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

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Phase II of CPEC: China-Pakistan Partnership Enters a New Era

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6 days ago

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The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.

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Business

The inflation rate in Pakistan dropped to its lowest level.

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6 days ago

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On December 2, core inflation as determined by the Consumer Price Index (CPI) significantly slowed, falling to 4.9% in November 2024 from 7.2 percent in October 2024.

The CPI-based inflation rate for the same month last year (November 2023) was 29.2%, according to PBS data.

Compared to a 1.2% gain in the prior month, it increased by 0.5% month over month in November 2024.

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