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PSX rises in cautious trade over Middle East tensions

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The Pakistan Stock Exchange (PSX) began on Wednesday on a minor positive note as investors remained cautious due to escalating tensions in the Middle East. The cautious tone followed President Donald Trump’s warning that military action against Iran could be necessary, a day after he called off an imminent strike to allow more time for talks with Tehran.

The KSE-100 index rose by 519.67 points to 163,416.35, up 0.32 percent from the previous close of 162,896.68 points.

The PSX statistics further revealed that the stock market went bullish on Tuesday, adding 1,091.66 points, a positive shift of 0.67 percent, finishing at 162,896.68 points against 161,805.02 points on the past trading day.

The ready market during the session transacted 391.935 million shares as compared to the previous session’s tally of 499.795 million shares, with a traded value of Rs 22.975 billion versus Rs 19.438 billion. The market capitalisation went up to Rs 18.081 trillion from Rs 17.990 trillion a day earlier.

In the ready market, 262 of the 480 active businesses moved up, 171 declined and 47 were stable.

Asian stocks dropped for a fourth consecutive day on Wednesday as war-driven inflation worries slammed bonds, while investors awaited earnings from Nvidia to see if the world’s most valuable firm might help markets handle higher borrowing costs.

The sell-off in global bond markets continued overnight with investors increasing wagers that the Federal Reserve may need to hike interest rates this year. The benchmark 10-year Treasury yield rose to a 16-month high of 4.687% overnight and the 30-year yield hit 5.198%, levels not seen since 2007.

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For three days, Pakistan lowers the price of petrol and diesel.

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For a three-day period starting on August 1, the government has announced a slight decrease in the cost of petroleum products, including gasoline and high-speed diesel (HSD).

The Petroleum Division said that the price of high-speed diesel has been lowered by Rs0.66 per litre, resulting in a new retail price of Rs392.38 per litre.

Additionally, the price of gasoline has been lowered by Rs0.12 per litre, to Rs336.03 per litre.

According to the letter, the updated pricing will go into effect between August 1 and August 3.

According to the administration, the little cut was taken after accounting for both domestic economic and budgetary factors as well as global oil costs.

In light of persistent economic pressures and swings in the world’s crude oil markets, the most recent adjustment provides customers with little respite.

The most recent update comes after the government regularly reviews fuel costs, which are decided by the currency rate, domestic tax laws, and global market trends.

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FBR surpasses its July revenue goal by Rs40 billion.

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In July 2026, the Federal Board of Revenue (FBR) collected Rs820 billion in net revenue, exceeding the monthly target by Rs40 billion.

The July tax collection target was set at Rs780 billion, but net receipts came in at Rs820 billion, according to FBR documents.

According to the papers, gross tax collections for the month totaled Rs918 billion. Net receipts were Rs820 billion after Rs98 billion of this sum was reimbursed to taxpayers under different refund categories.

Gross collections under the income tax head was Rs343 billion. Net income tax revenues fell short of the objective of Rs323 billion, coming in at Rs308 billion after the payment of Rs35 billion in refunds.

In July, sales tax collections came to Rs413 billion, while sales tax refunds were Rs53 billion.

The Federal Excise Duty (FED) collected Rs48 billion, compared to the objective of Rs47 billion, according to the FBR.

In July 2026, customs duty receipts totaled Rs115 billion, surpassing the designated objective of Rs105 billion by Rs10 billion.

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Foreign investors return to PSX after almost two years

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Foreign investors became net purchasers at the Pakistan Stock Exchange (PSX) for the first time in almost two years, indicating restored confidence in the country’s capital market at the beginning of the current fiscal year.

According to official data, foreign investors invested $34.4 million in the PSX in July 2026, a significant reversal from June 2026 when they sold $180 million worth of shares and pulled money out of the market.

The data showed that foreign investors were net buyers for the first time in nearly 23 months, with banking and exploration companies receiving the greatest investment in the month.

Foreign investors made investments in the banking sector to the tune of $13.8 million during July, while investments in exploration businesses amounted to $6.7 million.

However, the data also revealed that international investors preferred to dispose of cement stocks over the same period.

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