KARACHI: Bears in Pakistan’s equity market strengthened their grip on Tuesday as the country’s key stock index posted its highest-ever single-day decline of 2,534 points amid continued correction after the market hit record highs in recent weeks.
The benchmark KSE100 index crashed 4.1% to close at 59,171 points during the latest session at the Pakistan Stock Exchange (PSX). With the recent decline, KSE100 has dropped 11% or 7,256 points from the peak of 66,427 points on December 12, according to the market data.
Financial analysts termed the bearish spell at the bourse as the corrective phase in the overheated market, though they acknowledged it was also under pressure due to delay in interest rate cuts, political activities gathering pace ahead of the general elections and selling by foreign investors.
“The market is already in the corrective mode for the last seven consecutive sessions which continued today while the participation of foreign investors remains minimal due to new year festivities,” Tahir Abbas, head of research at Arif Habib Limited, told Arab News.
“The rollover week is also pushing the market down,” he said, adding the political climate had heated up over the weekend which was also contributing to the index fall.
Analysts said the investors were concerned about the outcome of the national polls scheduled for February 8.
“Investors are expected to remain cautious due to the ongoing political activities,” Abbas maintained.
PSX hit an all-time high of 66,427 at the outset of the month amid rumors of an interest rate cut. However, the central bank in its monetary policy continued with the 22 percent rate due to persistently high inflation.
“Market was expecting the interest rate cut in December which has now been delayed,” Yousuf Muhammad Farooq, director research at Chase Securities, said, adding: “This is also one of the reasons for the bearish mood.”
“The market was seen going up at a rapid pace and it is now correcting itself in a similar manner,” he continued.
Farooq maintained the future market direction would be set by the outcome of the upcoming polls and the implementation of the International Monetary Fund’s conditions.
Khurram Schehzad, CEO of Alpha Beta Core, a financial advisory firm, termed today’s trading session as “Black Tuesday for the Pakistan Stock Exchange,” adding the “leverage buying and its settlement” were also among the factors that contributed to the fall of the market.
Pakistan’s equity market posts highest-ever decline of over 2,500 points on ‘black Tuesday’
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Pakistan’s equity market posts highest-ever decline of over 2,500 points on ‘black Tuesday’
- KSE100 has dropped by 11% or 7,256 points in the seven consecutive bearish sessions from the peak of 66,427 points
- The market is in corrective mode, reacting to delays in interest rate cuts and political developments ahead of elections
Pakistan posts highest current account surplus in 11 months, sees 95% improvement
- Experts attribute improved current account situation to growth in remittances and increase in exports
- Pakistan’s IT exports also shot up in April, with local firms branching out in the Middle Eastern market
KARACHI: Pakistan recorded its highest current account surplus in April after a span of nine months, driven by increased remittances and exports that collectively improved the current account situation by 95 percent in the ongoing fiscal year, according to data released by the central bank on Friday.
The country posted a monthly current account surplus of $491 million last month, the highest since June 2023. During the first 10 months of the current fiscal year (10MFY24), the country’s deficit decreased by 95 percent on a year-on-year basis to $202 million. This was in marked contrast to a deficit of $3.92 billion recorded in the corresponding period last year, as per the data released by the State Bank of Pakistan (SBP).
“Pakistan’s current account improvement was mainly driven by an increase in remittances, month-on-month export growth, along with a decline in imports,” Tahir Abbas, head of research at Arif Habib Limited, told Arab News.
Pakistan received $2.8 billion of workers’ remittances in April 2024, which is 27.9 percent higher on an annual basis. The total inflow of remittance stood at $23.8 billion in the 10-month period of FY24.
“The remittance inflows are mainly due to the upcoming Eid Al-Adha,” Abbas said, referring to a Muslim festivity that follows the Hajj pilgrimage in Makkah. “This is the major contributor to the overall current account improvement.”
The central bank statistics show the monthly information technology (IT) exports from Pakistan increased by 62 percent on an annual and one percent on a monthly basis in the month of April to $310 million.
“This is the highest ever export number in a single month, with the previous highest of $306 million recorded in March 2024,” Topline Securities, a Karachi-based brokerage firm, said in its report issued on Friday.
The monthly IT exports in April are higher than the last 12-month average of $245 million, the brokerage firm added.
The growth in IT exports is due to the expansion of local companies in the Gulf market, especially Saudi Arabia, a relaxation of the permissible retention limit by the SBP from 35 percent to 50 percent in the exporters’ specialized foreign currency accounts, allowing them greater control over their earnings, and stability in the national currency, according to Topline Security.
All of these factors have encouraged IT exporters to bring a higher portion of profits back to the country, it added.
The cumulative IT exports in the first 10 months of the fiscal year increased by 21 percent on an annual basis, reaching $2.59 billion, compared to $2.14 billion recorded in the corresponding period last year. The net IT export number in April is also higher than last 12-month average of $214 million.
The central bank released data on foreign direct investment (FDI) as well that hit $359 million, up 172 percent on a yearly and 39 percent on a monthly basis in April.
This is the highest monthly inflow in nearly four and a half years. The major FDI inflow of $177 million came from China. During the first 10-month period of the ongoing fiscal, the net FDI inflow increased by eight percent on an annual basis to $1.45 billion compared to an inflow of $1.35 million in the corresponding period last year.
Punjab administration orders shortened school hours due to looming heatwaves
- A notification orders schools to ensure all fans are in working condition and water coolers available
- Provincial government has also announced summer vacation for all schools from June 1 to August 14
ISLAMABAD: The provincial administration of Punjab announced on Friday it would cut short the usual timings of all public and private schools for the rest of the month amid rising temperatures and warnings from the Meteorological Department of impending heatwaves in the coming weeks.
Just a day earlier, the Met Department warned that a major heatwave was set to engulf much of the country next week, with daytime temperatures expected to rise four to six degrees Celsius above the average.
It also predicted dust storms and heavy rains in various parts of Pakistan, including Punjab.
“In the wake of severe weather, it is hereby notified that following School timings shall be observed in all Public and Private Schools in the Province of Punjab with effect from 18th May to 31st May, 2024,” said a notification circulated by the provincial education department, showing 7 AM as the starting time and 11:30 AM as the finishing hour.
It instructed the schools to end classes at 10:30 AM on Friday and Saturday.
The notification also instructed the school authorities to ensure that all fans were in working condition, water coolers were available and no student was made to sit in uncovered and open spaces like lawns in summer season.
Another notification also announced that all the schools in the province will remain closed from June 1 to August 14 for summer vacation.
“All schools in the province shall reopen with effect from Thursday 15th August, 2024,” it added.
In recent years, Pakistan has experienced extreme weather patterns, including unprecedented rains, flash floods, droughts and heatwaves.
Experts attribute these erratic weather patterns to climate change, placing Pakistan among the ten countries most vulnerable to its impacts.
Pakistan’s army chief vows full support for hockey team after silver medal win in Malaysia
- The national hockey team reached the Sultan Azlan Shah Cup final for the first time in 13 years
- The Pakistani players were also hosted and praised by Prime Minister Shehbaz Sharif this week
ISLAMABAD: Pakistan’s army chief General Asim Munir vowed on Friday to fully support the national hockey team while meeting with its players and applauding them for winning a silver medal in the recent Sultan Azlan Shah Cup in Malaysia.
A day earlier, Prime Minister Shehbaz Sharif also hosted the Green Shirts in Islamabad in recognition of their outstanding performance at the tournament, where they reached the finals for the first time in 13 years.
Sharif praised the team’s performance and reiterated his administration’s commitment to promoting sports, particularly hockey, in the country.
The army chief also praised the squad during the interaction with its players in Rawalpindi.
“The hockey team has brought immense pride to the nation, and we are committed to providing them with comprehensive support to ensure their continued success,” he was quoted as saying in a statement released by the military’s media wing, ISPR.
He also extended his best wishes to the players for their future endeavors.
Cricket has generally overshadowed other sports in Pakistan, including hockey, in terms of popularity and media attention.
This is despite the fact that hockey is the country’s national sport and has a rich history of international success. Yet, it has not received the same level of sustained interest or investment as cricket, with the disparity impacting its development and visibility within the country.
England captain Buttler buoyed by return of ‘superstar’ Archer ahead of Pakistan series
- Injuries have blighted Jofra Archer and he has not played top-level cricket for the past year
- Buttler says he relies on Archer who has a trick up his sleeve in every cricket tournament
LONDON: England white-ball captain Jos Buttler is glad to see “proper superstar” Jofra Archer back in action following the fast bowler’s wicket-taking return to action for Sussex’s 2nd XI.
Injuries have blighted Archer’s international career and he has not played top-level cricket for the past year.
England, however, have recalled Archer for the defense of their T20 World Cup title in the United States and the West Indies next month, with the paceman also selected for the upcoming warm-up series against Pakistan.
Archer continued his build-up to the four-game series against Pakistan by turning out for Sussex’s second string on Friday.
He was parachuted into the match on day four, taking the new ball and returning figures of 1-11 in six sharp overs in Kent’s second innings at Beckenham.
The 29-year-old, previously playing domestic cricket in his native Barbados, hit home opener Ekansh Singh on the helmet and then had him caught in the slips.
Archer will join the England squad in Leeds ahead of the first Twenty20 international against Pakistan at Headingley on Wednesday.
Buttler, who returned early from the Indian Premier League to oversee England’s World Cup preparations, told Britain’s Press Association news agency: “It’s a huge encouragement for him to be back and see him ready to play.
“Everyone knows what he is capable of and the attitude he possesses. As a captain he is someone you can always turn to in a game because he always has a trick up his sleeve.
“It’s great to be able to call on him but it’s important to manage expectations. He has been out of it for a while now so we will need to look after him and realize that it might just take him a little while to be the Jofra of 2019.”
Dynamic batsman Buttler added: “He is a proper superstar but we do have to be smart with him. It’s a jump in intensity from what he’s doing now to international cricket and you can’t really replicate it.”
Leading fintech outlines vision for affordable remittances for Pakistani users at Dubai summit
- Unencumbered by traditional banking infrastructure, top JazzCash official sees fintechs offering greater financial inclusion
- Murtaza Ali says women already constitute 30 percent of JazzCash customers and 17 percent of its lending users
KARACHI: The top official of a leading Pakistani fintech told a summit in Dubai on Friday financial platforms offered by companies like his could boost remittances to the country, making these transfers more affordable and remotely accessible while making the platforms pivotal for millions of local households.
JazzCash, a mobile wallet and branchless banking service provided by a major telecom operator in Pakistan, was originally launched as “MobiCash” in 2012 before it was rebranded four years later.
Earlier this week, it announced a partnership with the United Arab Emirates-based financial service provider, du Pay, for smooth cross-border payments, saying the collaboration, powered by Western Union, would allow Pakistani nationals to send money directly to JazzCash mobile wallets.
According to a statement issued by the company, the JazzCash head, Murtaza Ali, spoke about the financial inclusion provided by fintech organizations while discussing their impact on the country’s economic landscape.
“Detached from traditional limitations like bank branches and agent networks, digital remittances can reach even remote, low-income households, empowering them to participate in the formal financial system,” he told the participants of the Dubai summit.
The Gulf nation hosts a vast Pakistani expatriate community and holds the distinction of being the second-largest contributor of remittances to Pakistan after Saudi Arabia, with $548 million transferred to the South Asian country in March.
Ali also revealed that women constituted 30 percent of JazzCash customers, 17 percent of lending users, 23,000 merchants and 6,000 agents.
“These encouraging numbers reflect the company’s ongoing commitment to enhancing female participation in its services,” he added.
The statement informed he also praised Pakistan’s central bank, telecom authority and financial regulatory agency for their collaborative approach that propelled digital and financial inclusion across the country.
“With a large unbanked population and a cash-dependent SME [small and medium enterprise] sector, we anticipate exponential growth,” it quoted Ali as saying. “Our roadmap involves leveraging data for risk assessment, venturing into Insurtech, and further integrating financial services into everyday transactions.”
