Tag: IT

May 18, 2022 (MLN): After witnessing a rough patch, bulls in the capital market made a comeback on Wednesday as the benchmark KSE100 index settled the trading session with a gain of 300.82 points or 0.70% DoD to close at 43,026.88.

In the backdrop of the coalition government’s decision to rule till August 2023, the trading floor remained positive most of the time.

Meanwhile, investors remained hopeful as the talks on the resumption of the IMF program started at the staff level.

In addition, the US offered strong support to provide economic relief to Pakistan, a post-market note by Pearl Securities highlighted.

However, the rupee continues to lose value closing at a historic low of $198.39 with higher international oil prices.

The index traded in a range of 652.92 points or 1.53 percent of the previous close, showing an intraday high of 43,161.22 and a low of 42,508.30.

Of the 91 traded companies in the KSE100 Index 65 closed up 24 closed down, while 2 remained unchanged. The total volume traded for the index was 117.99 million shares.

Sectors propping up the index were Cement with 58 points, Technology & Communication with 55 points, Fertilizer with 38 points, Power Generation & Distribution with 33 points and Food & Personal Care Products with 27 points.

The most points added to the index were by LUCK which contributed 28 points followed by HUBC with 26 points, TRG with 24 points, FFC with 24 points and EFERT with 18 points.

Sector-wise, the index was let down by Inv. Banks / Inv. Cos. / Securities Cos. with 11 points, Oil & Gas Exploration Companies with 9 points, Chemical with 6 points, Refinery with 4 points and Insurance with 3 points.

The most points taken off the index was by DAWH which stripped the index of 16 points followed by ENGRO with 12 points, MCB with 12 points, UBL with 8 points and MARI with 7 points.

All share volume increased by 80.89 million to 278.80 million shares. Market Cap increased by Rs42.58 billion.

Total companies traded were 345 compared to 326 from the previous session. Of the scrips traded 245 closed up, 83 closed down while 17 remained unchanged.

Total trades increased by 27,884 to 114,647.

Value Traded increased by 0.73 billion to Rs6.91 billion

Copyright Mettis Link News

May 18, 2022 (MLN): The provisional growth in the gross domestic product (GDP) for the financial year 2021-22 (FY22) is estimated at 5.97% against the growth of 5.74% in FY21, the National Accounts Committee (NAC) said in a meeting today.

Based on the initial estimates, the services sector is likely to increase by 6.19% in FY22 vs 6% in FY21.

The industrial sector may grow over 7.19% in the current fiscal year due to back of almost double-than-targeted growth in the largescale manufacturing (LSM) output.

The agriculture sector is estimated to see a growth of 4.40% in the ongoing fiscal year against 3.48% in FY21.

Meanwhile, the economy size is likely to grow to Rs38,755 billion in FY22 vs Rs36,573 billion last year.

Copyright Mettis Link News

May 18, 2022: Fertilser Review Committee (FRC) met under the chairmanship of Additional Secretary of Ministry of Industries and Production today. The representatives of fertilisers manufacturing industry, dealers, and Secretaries of Provincial agriculture departments attended the meeting via video link.

The forum discussed the domestic production and demand of fertilisers along with  pricing, tracking & verification mechanism of fertilisers for kharif season.

During the meeting, heads of agriculture departments told the forum that urea supplies were smooth and uninterrupted countrywide as of now. Producers apprised of maximum output of urea production by all urea plants. They also appreciated the government efforts to provide gas supplies to urea plants.

The forum also discussed the progress on vehicle tracking and verification process by manufacturerers and companies that vehicles tracking systems was being enhanced as per directions of the government to ensure smooth delivery of urea across the country.
 
While briefing on urea prices, the committee was told that urea was being sold on old price ie Rs. 1768/bag to provide relief to farmers. Provincial governments and Agriculture departments were directed to ensure the availablilty of urea on prescribed prices.

The government side of FRC assured  the industry that government would address issues pertaining to taxes and outstanding payments of industry.

Press Release

May 18, 2022: State Bank of Pakistan (SBP) has noticed that an increasing number of offshore foreign exchange trading websites, mobile applications and platforms such as OctaFX, Easy Forex, etc. are offering their products and services to residents of Pakistan.

These digital platforms lure people through social media advertisements to buy/invest in their products or services. Examples of such products include but not limited to foreign exchange trading, margin trading, contract for differences, etc.

It is clarified for the interest of public that buying products and services being offered by aforementioned platforms by any person resident in Pakistan is prohibited and against the laws of the land. Any person in Pakistan buying products or services of such offshore platforms and remitting foreign exchange directly or indirectly to them through any payment channel is making himself/herself liable to be proceeded against for violation of provisions of the Foreign Exchange Regulation Act, 1947 (FERA).

Since such platforms are regulated neither by the SBP nor by the Securities & Exchange Commission of Pakistan; hence, the public is hereby advised to be careful and refrain from buying/investing in products and services of such offshore platforms to avoid any potential loss and legal proceedings under FERA. The instructions issued to the banks in this respect by State Bank of Pakistan are given at  https://www.sbp.org.pk/epd/2022/FECL8.htm)

Press Release

May 18, 2022 (MLN): After witnessing a storm-tossed session on Wednesday, the Pakistani rupee (PKR) slid by 2.6 rupees against the US dollar in the interbank session as the currency settled the trade at PKR 198.39 compared to the previous closing of PKR 195.74 per USD.

While enduring a rough session, the rupee traded in a range of 3.1 rupees, witnessing an intraday high bid of 199.25 and an intraday low offer of 196.5.

At the same time, the elevated demand for dollars amid panic created by uncertain market conditions has touched the phycological mark of PKR 200 as the local unit was traded at 198/200 per USD.

Asad Rizvi, the former Treasury Head at Chase Manhattan said, “The current pressure on the local unit is due to the silence from the side of SBP and continuous decline in foreign exchange reserves.”

Meanwhile, the rising oil prices in the international market have also kept PKR under severe pressure, he added.

He went on to say, “Since Pakistan is a borrowing economy with a notable trade deficit and a deteriorating balance of payment, the IMF factor is playing a vital role.”

Political instability is one of the major factors behind the delay in the IMF tranche which has made the situation worst for Pakistan. He added, “Present situation is out of the government’s hands and it is difficult to manage without external support. Even persistent inflow of record remittances is not helping.”

If the talks remain in favor of Pakistan, the pressure from the exchange rate will be eased off.

During the day, the performance of PKR remained bleak against major currencies as it weakened by 1.81%, 1.36%, 1.34%, 1.34%, 1.31%, 1.28%, and 1.07% against EUR, JPY, SAR, AED, CNY, CHF, and GBP, respectively.

From July’21 to date, the local unit has lost Rs40.84 against the USD. Similarly, the rupee fell by Rs21.87 in CYTD, with the month-to-date (MTD) position showing a wither of 6.40%, as per data compiled by Mettis Global.

During the last 52 weeks, PKR lost 22.77% against the greenback, reached its lowest at 198.39 today, and touched its high of 153.22 on May 19, 2021.

Furthermore, the local unit has weakened by 10.50% since its high on July 02, 2021, against EUR.  While, it has dropped by 11.99% against GBP since its high on May 20, 2021.

Meanwhile, the currency lost 2.6 rupees to the Pound Sterling as the day's closing quote stood at PKR 246.06 per GBP, while the previous session closed at PKR 243.42 per GBP.

Similarly, PKR's value weakened by 3.8 rupees against EUR which closed at PKR 208.7 at the interbank today.

On another note, within the money market, the overnight repo rate towards the close of the session was 11.90/12.25 percent, whereas the 1-week rate was 12.35/12.45 percent.

Copyright Mettis Link News