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PSX starts 2024 in green as KSE-100 surges by over 2,000 points

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KARACHI: The Pakistan Stock Exchange (PSX) started the new year on a positive note as it began trading in the green zone with a surge of over 2,000 points. 

The benchmark KSE-100 index on Monday reached 64,475.21 points, up by 2,024.17 points or 3.24% from the previous close of 62,451.04 points. 

KSE-100 index. — PSX website
KSE-100 index. — PSX website 

Head of Equities at Intermarket Securities, Raza Jafri, attributes the surge to energy stocks on expectations of dividend payouts as the result season approaches with the government looking serious about addressing circular debt.

“There are also expectations of greater institutional flows into equities with monetary easing expected to commence within the next few months,” Jafri told Geo.tv

On the last trading session of 2023, stocks gained 0.64% as investors cheered the rise in foreign exchange reserves and the inflow of loans from multilateral lenders, The News reported on Saturday citing analysts. 

The market was buoyed by the central bank’s announcement that its foreign exchange reserves increased by $853 million to $7.8 billion in the week ending December 22, thanks to financial support from bilateral and multilateral sources.

‘Best year since 2010’

Meanwhile, the PSX capped its best year since 2010 as the KSE-100 index ended 2023 with a 55% gain, the third-best among global markets in local currency terms. 

The index also rose 24% in dollar terms, outpacing the MSCI Emerging Markets Index, which gained 18%.

Looking ahead, analysts were optimistic about the prospects of the market in 2024, as they expect the International Monetary Fund’s (IMF) program to continue, the currency to remain stable, the interest rates to decline, the earnings to grow, and the valuations to improve.

“We expect the local bourse to remain in the green zone,” stated brokerage Arif Habib Ltd. 

“Moreover, we expect an influx of fresh liquidity amid the January effect. Moreover, the scrips are trading at attractive valuations, and are expected to further boost positive sentiment at the index.”

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

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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.

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In January 2025, RDA inflows reach 9.564 billion USD.

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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.

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

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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.

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