Business

PSX soars to all-time high on positive macros

Published

1 year ago

Farwa

KARACHI: The Pakistan Stock Exchange (PSX) Friday soared to an all-time high as it rallied over 400 points — crossing the 53,000 barrier — driven by positive cues including the expectations of clearing the International Monetary Fund (IMF) review.

Currently, the market stands at 53,111.30 points with a gain of 454.54 or 0.86% points. This is the first time the KSE-100 index has breached the 53,000-mark.

Benchmark KSE-100 index. — PSX data portal

Arif Habib Limited wrote on X, formerly Twitter, that the market has achieved a remarkable milestone by soaring to unprecedented all-time high levels, surging past previous records and “setting a new era of financial excellence”.

"PSX Market Soars to All Time Highs”, Igniting Frenzy!

The market, for the very first time in its history, has achieved a remarkable milestone by soaring to unprecedented all-time high levels, surging past previous records and setting a new era of financial excellence.… pic.twitter.com/uO8cCwjLVl
— Arif Habib Limited (@ArifHabibLtd) November 3, 2023

Capital market expert Saad Ali told Geo.tv that the market was driven by abating political risk, macro indicators moving in the right direction, the expectation of a favourable IMF review and anticipation of rate cuts in the near term.

“However, the market remains cheap by historical standard at only 4x forward earnings,” he said.

Pakistan-Kuwait Head of Research, Samiullah Tariq, told Geo.tv: “Strong earnings, expectations of clearing IMF review, and expectations of a decline in interest rates in the future are driving the market.”

In October, the KSE-100 index was announced as the world’s third best-performing market as it touched a six-year high level of 51,920 points.

A day earlier, the IMF delegation in Pakistan lauded the steps taken by Pakistan but emphasised that Pakistan has to strictly implement all the targets.

The IMF mission led by Nathan Porter had arrived in Pakistan a day earlier to lead the two-week-long talks on the second tranche under the SBA.

Dr Akhtar assured the IMF that targets are being implemented under the loan programme and that all the conditions of the IMF have been implemented so far.

Business

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

Published

3 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

3 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.