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Stock brokers attend to phone calls and monitor share prices on their computers during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on December 4, 2024. — APP.
#Stocks #poised #sustain #upward #momentum
KARACHI: KARACHI: Pakistan stock market is expected to keep its positive pace next week.
The market ended the weekend on a positive note, supporting domestic liquidity and favorable sentiments of investors, which discussed the first review under the Billion 7 billion EFF on the IMF visit.
“We expect the market to maintain its positive pace next week, in which a monetary policy meeting will be scheduled on Monday,” Arif Habib Limited said in his weekly review note.
The Brokerage House expects the Monetary Policy Committee (MPC) policy to reduce the policy rate from 50 twenty points (BPS) to 11.5 percent. In addition, the first review of the ongoing IMF mission and the bailout program is expected to reinforce investors’ confidence.
On the economic front, inflation fell to the lowest level of 113 months in February 2025, with a year -old Yoy (YOY) low, which is the lowest after September 2015 (1.3 %).
Meanwhile, a Treasury Bill (T) auction was organized during the week, which did not change the production of three months’ bills, while each of the six months and twelve months papers saw a lack of the basis. In the first eight months of the financial year, the trade deficit increased by 6.3 percent to $ 15.8 billion.
On a positive note, sales of oil marketing company (OMC) increased by 4.0 % during the same period. However, sales of urea and demonium phosphate (DAP) decreased by 37 % and 64 %, respectively.
In addition, the State Bank of Pakistan (SBP) foreign exchange reserves increased by $ 27 million on Saturday (Wah), which reached $ 11.2 billion, while the rupee fell slightly by 0.05 %, which closed at 279.82 against the US dollar. The KSE -100 Index closed at 114,399 points, reflecting a weekly 1,147 points or an increase of 1.01 percent.
Come positive contributions according to the sector: E & PS (656 points); Cement (451 points); OMCS (346 points); Power (177 points); And glass (114 points). Meanwhile, the sectors that negatively supported were: Technology and Communications (122 points); Textile (97 points); Autos (89 points); And commercial bank (48 points). The script war was a positive partner PPL (290 points). PSO (247 points); OGDC (236 points); Hub c (185 points); And FCCL (156 points). While, the script -war negative contribution was achieved by SYS (84 points), MTL (77 points), MHT (75 points), Behl (74 points), and UBL (64 points).
Foreign sales this week is $ 5.3 million this week compared to net sales of 6 million last week. E&P (7 2.7 million) witnessed a large sale, followed by commercial banks (3 2.3 million). On the local front, banks/DFIs (.4 43.4 million) and companies ($ 7.5 million) reported purchase. The average volume fell to 291 million shares (41 % wow), while the average price Million was reduced to 65 million (less than 24.2 percent wow).
Other big news during the week includes: fuel prices have been cut to Rs 5.3 per liter. In July February, $ 8.17 percent was exported to $ 22.022 billion. New customs values set for LCD screens imported from China/Hong Kong. The price of Richards Bay Coal falls at the lowest level of three years .390.3. And the Executive Committee of the Strategic Investment Facility (SIFC) has agreed to take advantage of PIBTL to deal with copper and gold.
JS Equity Research Head, Waqas Ghani, noted that KSE -100 remained positive for a week, closed at 114,399 points, which benefited 1.0 % Wah. However, the trade volume decreased by 41 % of the wow 291 million.
He added that the week started on a negative note, the investors were cautious as the IMF team reviewed Pakistan’s progress under the EFF.
Ghani further pointed out that in the first eight months of the financial year, Pakistan’s tax collection has decreased by Rs 606 billion. However, positive developments throughout the week eventually eliminated the market sentiment.
Consumer Price Index (CPI) inflation for February 2025 stood at 1.5 %, which identified the lowest reading in almost a decade. It kept the real interest rate (RIR) more than 10 percent points.
The government has signed an agreement with commercial banks, which borrowed 1.0 % at a rate of 1.0 percent at 1.0 percent. It is seen as an important development for Pakistan’s energy sector, as it can open a significant cash flow for circular debt -affected companies.
In addition, Ghani said the government has proposed tax reduction to the IMF for key sectors, including property, tobacco and beverages.
