ISLAMABAD: Pakistan’s stock market continued to extend its rally on Friday and surpassed the unprecedented 115,000-point mark before pulling back during the weekend trading session as investors locked in profits from the recent surge, analysts said.
The benchmark KSE-100 index surged by 121.30 points, or 0.11 percent, to close at 114,301.80 points from Thursday’s close of 114,180.50 points. The index hit an intraday high of 115,172.44 points after climbing 991.94 points during the weekend trading session.
Stock analysts attributed the ongoing rally to expectations of a policy rate cut by the Pakistani central bank next week.
“The monetary policy is due on Dec. 16 (Monday) and there are expectations of a sharp rate cut,” Raza Jafri, head of equities at Intermarket Securities, told Arab News. “The stock market is reacting accordingly.”
Arif Habib Corporation’s Chief Executive Officer Ahsan Mehanti said the market reached a new all-time high on Friday due to positive sentiment originating from recent growth projections and lowering inflation.
“Asian Development Bank raising growth projections to three percent and lowering inflation forecast to 10 percent for FY25 played the role of a catalyst in the record surge at PSX,” he said.
Pakistan’s annual consumer inflation also slowed to 4.9 percent in November, lower than the government’s forecast and the lowest in nearly six years. This is down from 38 percent last year.
Commenting on the market’s bullish run this week, Jafri said Pakistani companies were currently trading at a relatively low price-to-earnings ratio of six times their profits, significantly below the 10-year average of 7.5 times and the historical peak of 12 times.
Mehanti said the stocks rallied to new highs this week over Finance Minister Muhammad Aurangzeb’s assurance of achieving macroeconomic stability, apart from surging global crude oil prices.
Pakistani stocks have performed significantly well this week on the back of investor confidence regarding a possible interest rate cut by the central bank at the next monetary policy meeting. The central bank has already slashed interest rates by 700 basis points (bps) in four consecutive meetings since June, bringing it to 15 percent.
According to a poll by Topline Securities, 71 percent of participants expect the central bank to announce a minimum rate cut of 200bps next week.
Trade data released by the Pakistan Bureau of Statistics also supports positive investor sentiment as the trade deficit narrowed by 7.39 percent during the first five months (July-November) of the current fiscal year, standing at $8.651 billion, compared to $9.341 billion during the same period last year.
Exports rose by 12.57 percent to hit $13.69 billion, while imports increased by 3.90 percent to $22.342 billion during this period. November’s trade deficit narrowed even further, dropping by 18.60 percent year-on-year to $1.589 billion compared to $1.952 billion in November 2023.
Pakistan stock market recovers to end weekend session below 115,000 points
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Pakistan stock market recovers to end weekend session below 115,000 points
- KSE-100 index surged by 121.30 points, or 0.11 percent, to close at 114,301.80 following an intraday high of 115,172.44 points
- Analysts credit the stock market’s bullish run this week to investor confidence regarding possible interest rate cut on Dec. 16
Pakistan warns of strict action against hoarding petroleum products amid Iran crisis
- OGRA says reports indicate “certain elements” may attempt to hoard petroleum products for profiteering
- Oil and Gas Regulatory Authority says Pakistan’s petroleum reserves stocks adequate, no need for panic buying
ISLAMABAD: Pakistan’s Oil and Gas Regulatory Authority (OGRA) warned on Thursday that the government will take strict action against anyone found illegally hoarding petroleum products for profiteering, amid fears of a shortage of energy supplies due to the ongoing conflict in the Middle East.
Pakistan has formed a government committee to monitor the country’s stock of petroleum products amid ongoing hostilities between the US and Israel against Iran. The committee is also reviewing supply chains, price movements and assessing broader implications for inflation, external accounts, and financial stability due to the crisis.
OGRA has repeatedly urged that Pakistan’s stock of petroleum products is adequate and urged the masses not to take part in panic buying. On Wednesday, it allowed oil marketing companies to regulate supplies to their retail outlets so as to discourage hoarding.
“It has been emphasized that strict action will be taken against any individual or entity found involved in illegal hoarding or storage of petroleum products at unauthorized locations,” OGRA spokesperson Imran Ghaznavi said in a statement.
“Particularly at places other than duly licensed oil depots and retail outlets of Oil Marketing Companies (OMCs).”
The OGRA spokesperson said reports indicate certain elements may attempt to hoard petroleum products for profiteering. It said that provincial chief secretaries have been requested to direct deputy commissioners to conduct inspections in their jurisdictions.
“Any premises found involved in illegal storage of petroleum products will be sealed and action will be taken in accordance with the law,” OGRA warned.
The spokesperson said OGRA was monitoring energy supplies in Pakistan, adding that inspections are being conducted at oil depots and retail outlets to ensure smooth supply of petroleum products.
“The public is advised not to pay attention to rumors and to continue normal consumption patterns, as the petroleum supply situation in the country remains stable,” it added.
Pakistan this week asked Saudi Arabia to help Islamabad secure crude oil supplies through the Red Sea port of Yanbu, as the Strait of Hormuz’s closure threatens the country’s energy supply routes.
Pakistan fears higher global energy prices could lead to consumers paying more for petrol and shelling out more for groceries and other goods, at a time when many are already feeling the impacts of inflation.
Pakistan warns of strict action against hoarding petroleum products amid Iran crisis
OGRA says reports indicate “certain elements” may attempt to hoard petroleum products for profiteering
Oil and Gas Regulatory Authority says Pakistan’s petroleum reserves stocks adequate, no need for panic buying
Arab News Pakistan
Islamabad: Pakistan’s Oil and Gas Regulatory Authority (OGRA) warned on Thursday that the government will take strict action against anyone found illegally hoarding petroleum products for profiteering, amid fears of a shortage of energy supplies due to the ongoing conflict in the Middle East.
Pakistan has formed a government committee to monitor the country’s stock of petroleum products amid ongoing hostilities between the US and Israel against Iran. The committee is also reviewing supply chains, price movements and assessing broader implications for inflation, external accounts, and financial stability due to the crisis.
OGRA has repeatedly urged that Pakistan’s stock of petroleum products is adequate and urged the masses not to take part in panic buying. On Wednesday, it allowed oil marketing companies to regulate supplies to their retail outlets so as to discourage hoarding.
“It has been emphasized that strict action will be taken against any individual or entity found involved in illegal hoarding or storage of petroleum products at unauthorized locations,” OGRA spokesperson Imran Ghaznavi said in a statement.
“Particularly at places other than duly licensed oil depots and retail outlets of Oil Marketing Companies (OMCs).”
The OGRA spokesperson said reports indicate certain elements may attempt to hoard petroleum products for profiteering. It said that provincial chief secretaries have been requested to direct deputy commissioners to conduct inspections in their jurisdictions.
“Any premises found involved in illegal storage of petroleum products will be sealed and action will be taken in accordance with the law,” OGRA warned.
The spokesperson said OGRA was monitoring energy supplies in Pakistan, adding that inspections are being conducted at oil depots and retail outlets to ensure smooth supply of petroleum products.
“The public is advised not to pay attention to rumors and to continue normal consumption patterns, as the petroleum supply situation in the country remains stable,” it added.
Pakistan this week asked Saudi Arabia to help Islamabad secure crude oil supplies through the Red Sea port of Yanbu, as the Strait of Hormuz’s closure threatens the country’s energy supply routes.
Pakistan fears higher global energy prices could lead to consumers paying more for petrol and shelling out more for groceries and other goods, at a time when many are already feeling the impacts of inflation.
