Business

KSE-100 index plunges over 650 points on fears of monetary tightening

Published

3 years ago

Farwa

KSE-100 index closes at 42,440.25 after losing 1.53%.
Delay in tough economic decisions and political uncertainty have unnerved investors.
Shares of 314 companies were traded during the session.

KARACHI: The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) plunged on Monday, the first day of the rollover week, as an across-the-board selling spree pushed share prices into the red zone.

The delay in tough economic decisions by the coalition government and heightened political uncertainty has unnerved investors. Moreover, the Pakistani rupee remains in a downward spiral with the US dollar gaining another 0.39% on Monday to close at 200.93.

The index remained jittery over concerns regarding monetary policy tightening which was to be announced after the session.

It is worth mentioning that contrary to market expectations the State Bank of Pakistan (SBP) raised the benchmark interest rate by 150 basis points to 13.75% for the next six weeks in order to stabilise inflation and economic growth.

Moreover, uncertainty regarding the ongoing talks between Pakistan and the International Monetary Fund (IMF) mission for the revival of the stalled multibillion-dollar programme took a toll on the market.

At close, the benchmark KSE-100 index closed at 42,440.25 after losing 660.46 points or 1.53%.

A report from Arif Habib Limited noted that the market witnessed a bloodbath session as investors remained bearish throughout the day.

“The benchmark KSE-100 index nosedived from the beginning of the session as an increase in the political noise over the weekend and uncertainty regarding resumption of IMF programme along with continued depreciation of Pakistani rupee against the US dollar and rate hike in the Monetary policy, shattered investors’ confidence,” the report noted.

The brokerage house noted that the volumes remained dull on the mainboard although hefty volumes were observed in third-tier stocks.

Sectors contributing to the performance included cement (-120.8 points), fertiliser (-89 points), exploration and production (-79.9 points), technology (-72.5 points), and banks (-63.1 points)

Shares of 314 companies were traded during the session. At the close of trading, 48 scrips closed in the green, 250 in the red, and 16 remained unchanged.

Overall trading volumes rose to 118.98 million shares compared with Friday’s tally of 189.92 million. The value of shares traded during the day was Rs3.57 billion.

Silk Bank was the volume leader with 9.97 million shares traded, gaining Rs0.04 to close at Rs1.32. It was followed by WorldCall Telecom with 7.62 million shares traded, losing Rs0.09 to close at Rs1.50 and K-Electric with 6.12 million shares traded, losing Rs0.08 to close at Rs2.50.

Business

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

Published

2 days ago

Farwa

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.

Business

In January 2025, RDA inflows reach 9.564 billion USD.

Published

2 weeks ago

Farwa

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.

Business

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

Published

2 weeks ago

Farwa

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.