Business

PSX hits another milestone amid monetary easing, upcoming IMF tranche

Published

1 year ago

Farwa

KARACHI: The Pakistan Stock Exchange (PSX) Wednesday breached the 58,000 mark for the first time as analysts credit monetary easing and optimism surrounding the economy after the International Monetary Fund (IMF) tranche for driving the market.

The KSE-100 index gained over 800 to reach 58,203.85 during the intraday trading, up from yesterday’s close of 57,371.59, according to the PSX website.

The KSE-100 index at 12:44pm. — Screengrab/PSX

Arif Habib Limited (AHL) Head of Research Tahir Abbas, while speaking to Geo.tv, said that the market was continuing its positive momentum amid expectations of monetary easing, strong profitability, and certainty on the upcoming general election — slated to take place on February 8 next year.

“Moreover, despite the fact that the market is trading at an all-time high, the valuation of the market is still attractive. The KSE-100 index is currently trading at a PE (price to earning ratio) of 4.3x as compared to the last 5-year average multiple of 6x,” he added.

Meanwhile, Pakistan-Kuwait Head of Research, Samiullah Tariq told Geo.tv that the market is responding to the hopes of IMF board approving the tranche under the SBA as well as the low valuations compared to the region.

A day earlier, the stocks reached another high as investors were optimistic about the prospects of receiving the first loan tranche from the global lender.

The market was buoyed by reports that the IMF board meeting to approve a staff-level agreement on the $700 million loan tranche under the standby agreement for Pakistan could take place in the first week of December, they added.

Business

E&P Companies Will Invest $5 Billion in Pakistan’s Petroleum Industry

Published

12 hours ago

Farwa

Over the next three years, local and foreign companies involved in Pakistan’s oil and gas exploration and production sector have shown a strong desire to invest more than $5 billion in the nation’s energy sector.

Recent changes to the Petroleum Policy and the implementation of an exclusive tight gas policy, which provide better incentives and a more investor-friendly regulatory framework, are credited with the increase in investor confidence.

These strategic changes are expected to boost domestic energy production, open up new avenues for growth, and draw large amounts of both domestic and foreign investment.

Business

With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

Published

13 hours ago

Farwa

Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.