Business

PSX weekly review: KSE-100 index posts highest weekly gain in two years

Published

3 years ago

Farwa

Benchmark KSE-100 index surges 4.9% during the week.
Gains come on the back of clarity on the political front.
A weekly rally of a similar extent was last witnessed in April 2020.

KARACHI: The outgoing week proved to be an outstanding one for the stock market as it recorded phenomenal gains on the back of clarity on the political front.

The KSE-100 index surged 4.9%, marking the highest week-on-week increase in two years, to settle at 46,601 points. A weekly rally of a similar extent was last witnessed in April 2020.

In the outgoing week, the market roared back after political clarity emerged. Following Prime Minister Shehbaz Sharif’s oath-taking ceremony, the new coalition government began work to tackle the economy.

Moreover, the rupee recovered against the dollar at a rapid pace, marking a 3.6% appreciation. Additionally, the country received record-high remittances this month clocking in at $28.3 billion, showing a 28% increase month-on-month, on account of Ramadan and Eid.

Other major developments during the week were: SBP’s reserves slip below $11 billion, banks approved Rs180 billion in housing loans, Pakistan Telecommunication Authority (PTA) renewed mobile operator licence for $486 million, cars’ sales surged 53.78% in nine months, Rs1 billion Islamic finance facility for renewable energy power plants, weekly inflation witnessed the biggest rise since November.

Meanwhile, foreign buying was witnessed this week, clocking in at $1.29 million against a net sell of $3.78 million recorded last week. Buying was witnessed in technology ($2.21 million), and fertiliser ($1.16 million).

On the domestic front, major selling was reported by a mutual fund ($9.89 million), followed by insurance companies ($7.76 million).

During the week under review, average volumes clocked in at 477 million shares (up by 213% week-on-week), while average value trade settled at $66.3 million (up by 135.6% week-on-week).

Major gainers and losers of the week

Sector-wise positive contributions came from commercial banks (+395 points), fertiliser (+292 points), technology and communication (+268 points), cement (+241 points), and refinery (+129 points). On the flip side, negative contributions came from real estate investment trust (-2.19 points), and vanaspati and allied industries (-1.55 points).

Scrip-wise major gainers were Engro Corporation (+152 points), TRG Pakistan (+136 points), Meezan Bank (+122 points), HBL (+85 points) and Systems Limited (+80 points). Meanwhile, major losers were Colgate-Palmolive (-14 points), Faysal Bank (-10.88 points), Fatima Fertilisers (-4.74 points), Allied Bank (-3.18 points), and Dolmen City REIT (-2.19 points).

Outlook for next week

A report from AHL predicted: “We expect the market to remain positive in the upcoming week. With the commencement of the result season and clarity on the political front, certain sectors and scrips are expected to stay under the limelight.”

“Furthermore, we are expecting the rollover of Chinese loans worth $2.3 billion and IMF negotiations, will help bolster our foreign exchange reserves.,” it said, adding that any dip in oil prices should also have a positive impact on the equity bourse.

“The KSE-100 is currently trading at a PER of 5.0x (2022) compared to the Asia-Pacific regional average of 11.5x while offering a dividend yield of 8.3% versus 2.6% offered by the region,” the brokerage house stated.

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.