KARACHI: The Pakistan Stock Exchange (PSX) on Monday hit a new all-time high of 69,620 points, equity analysts said, attributing it to hopes of the Saudi crown prince’s visit to Pakistan and investment in the Reko Diq gold mine project.
The benchmark KSE100 index crossed the psychological barrier of 69,000 points by gaining 1,203 points, or 1.76 percent, which is highest increase after January 01, 2024.
It followed Prime Minister Shehbaz Sharif’s visit to Saudi Arabia where he met with Crown Prince Mohammed bin Salman and other officials.
This was the Pakistani prime minister’s first foreign trip since forming a coalition government in February this year.
“The basic reason of continuation of the bullish market is the recent visit of PM to Saudi Arabia, where he held an important meeting with the crown prince and the Saudi interest in Pakistan is clear, particularly $1 billion investment in Reko Diq project,” Sheheryar Butt, portfolio manager at Karachi-based Darson Securities, told Arab News.
Although there has been no official confirmation of it, Pakistani media reports have suggested the Kingdom is interested in investing about $1 billion in the Reko Diq gold and copper mine located in Pakistan’s southwestern Balochistan province.
One of the largest undeveloped copper-gold projects in the world, Reko Diq is owned 50 percent by Canada-based Barrick Gold Corporation, 25 percent by three federal state-owned enterprises, 15 percent by Balochistan on a fully funded basis, and 10 percent by Balochistan on a free carried basis, according to Barrick.
Butt said the market stakeholders were also expecting that the Saudi crown prince might visit Pakistan after Eid Al-Fitr, which boosted investor confidence.
“It is very much likely that the Saudi Crown Prince may visit Pakistan after Eid, following the Pakistan prime minister’s Saudi tour,” he said.
Market sentiments, according to Butt, were also buoyed by foreign investment in equity and money market, while inflows of financial results of companies also played a key role in the bullish close.
Samiullah Tariq, director at Pakistan Kuwait Investment Company, believed the bullish trend also resulted from hopes of a new International Monetary Fund (IMF) loan program.
“Apart from PM’s Saudi visit which is expected to materialize some investment deals, the optimism at the IMF front is also propelling the stocks to new highs,” Tariq told Arab News.
The South Asian nation is formulating a proposal to present to the IMF for a more extensive loan program, with an anticipated size of $7-9 billion. This follows a staff-level agreement between Pakistan and the IMF on the final review of a $3 billion Stand-By Arrangement (SBA), paving the way for the release of $1.1 billion by the lender this month.
Ali Nawaz, CEO of Chase Securities, said the bullish trend could be attributed to a combination of factors, including positive economic news flow like the IMF agreement, which had instilled confidence in investors.
“Additionally, increased buying from both local and foreign investors has driven up stock prices due to higher demand,” he said.
Nawaz, however, was uncertain about the sustainability of the current rally.
“Global economic conditions and the continuation of positive domestic reforms will play a significant role in determining the PSX’s future performance,” he added.
The stock market confidence was also boosted by the appreciation of the Pakistan’s currency which continues to stabilize against United States (US) dollar.
The greenback has come down to around Rs280 since the Pakistani authorities took serious actions against dollar smuggling and hoarding.
The US dollar is currently trading at around Rs277 for buying and Rs279 for selling in the open market, according to Exchange Companies Association of Pakistan (ECAP). It is trading at Rs277.95 in the interbank market.
“The strict action taken by the country’s army chief against smuggling of dollars to Afghanistan and hoarding and manipulation of currency by certain banks is yielding results,” Malik Bostan, the ECAP chairman, told Arab News.
Bostan said exporters were coming in large numbers to convert their proceeds in local currency due to fear of further depreciation of greenback.
“We expect that the currency would further appreciate against dollar and may stabilize around Rs250 in the interbank and open markets,” he added.
Hopes of Saudi crown prince’s visit, Reko Diq investment propel Pakistan stocks to new all-time high
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Hopes of Saudi crown prince’s visit, Reko Diq investment propel Pakistan stocks to new all-time high
- The benchmark index recorded its highest-ever closing at 69,620 points, after gaining 1,203 points on Monday
- Analysts say optimism on IMF front, foreign investment in government securities also drove bullish sentiment
Pakistani stocks break psychological 99,000 barrier on optimism over rates, reserves
- An analyst attributes the intraday rally to broad-based gains across most economic sectors
- The stock market has remained bullish since the government slashed policy rate in November
ISLAMABAD: The Pakistan Stock Exchange (PSX) on Friday breached a major psychological barrier, surging past 99,000 points during intra-day trading before settling at 97,798.23, as analysts attributed the rally to investor optimism driven by falling lending rates and higher foreign exchange reserves.
The benchmark KSE-100 index climbed 2,057.40 points by 11:10 am, reaching 99,385.79 points from the previous close. However, the index closed at 97,798.23, marking an increase of 469.84 points or 0.48 percent.
Analyst Ahsan Mehanti of Arif Habib Corporation said bank levies on large deposits, surging global oil prices, and rupee stability were fueling investor optimism.
“Stocks remained bullish, led by scrips across the board, as investors weighed falling lending rates and the imposition of bank levies on large deposits following a drop in government bond yields,” he told Arab News. “Surging global crude oil prices, rupee stability, and higher forex reserves played a catalytic role in the record surge at the PSX.”
Last month, Pakistan’s external current account recorded a surplus of $349 million, marking the third consecutive month of surplus and the highest in this period. The current account reflects a nation’s transactions with the world, encompassing net trade in goods and services, net earnings on cross-border investments and net transfer payments.
A surplus indicates that a country is exporting more than it is importing, thereby strengthening its foreign exchange reserves.
A bullish trend has been observed in the stock market since Pakistan’s central bank cut its key policy rate by 250 basis points, bringing it to 15 percent earlier this month. Economic indicators have also steadily improved since securing a 37-month, $7 billion bailout from the International Monetary Fund (IMF) in September.
In the past, the country faced a prolonged economic crisis that drained its foreign exchange reserves and saw its currency weaken amid double-digit inflation. Last year, Pakistan narrowly avoided a sovereign default by clinching a last-minute $3 billion IMF bailout deal.
US vows to be ‘steadfast partner’ after deadly attack in Pakistan’s Kurram district
- American diplomatic mission says Pakistanis deserve to live free from harm, danger and threat
- It offers condolences to victims’ families after 41 people were killed by unknown gunmen this week
KARACHI: The United States on Friday condemned a deadly attack in Pakistan’s Kurram district that killed 41 people this week, reaffirming its commitment to stand with Pakistan in ensuring the safety of its citizens against such militant attacks.
Unidentified gunmen targeted vehicles carrying Shiite community members in the Kurram district of Khyber Pakhtunkhwa province on Thursday, in one of the deadliest sectarian attacks in recent years. The assault, which also left many critically injured, occurred in a region already plagued by deadly clashes in recent months.
“The United States will remain a steadfast partner as Pakistan works to ensure the safety and security of all its citizens,” Jonathan Lalley, the spokesperson of the US diplomatic mission in Pakistan, said in a statement. “We stand in solidarity with Pakistan and the people of Khyber Pakhtunkhwa in this difficult time.”
Lalley expressed condolences to the victims’ families and called for a full recovery for the injured.
“The Pakistani people deserve to live free from harm, danger, and threat, and to feel protected and secure in their daily lives,” he added.
No group has claimed responsibility for the attack, which followed the reopening of a key highway in the region after it was closed for weeks due to sectarian violence.
Kurram, a volatile district near the Afghan border, has been a flashpoint for sectarian clashes between Sunni and Shiite communities, adding to the challenges of maintaining security in the area.
The US-Pakistan forged a counterterrorism partnership in the aftermath of the September 11, 2001, attacks, to address regional security challenges. Over the years, however, the relationship faced friction, while the US-led international forces were in Afghanistan.
Despite the tensions, both countries reaffirmed their commitment to security cooperation and counterterrorism efforts, especially in the wake of the US military withdrawal from Afghanistan in 2021.
The commitment to security partnership reflects a shared goal of combating extremism and ensuring regional stability.
Pakistan, Malaysia agree to enhance military cooperation with focus on air force training
- Malaysian air chief praises PAF’s advancements in indigenization on his first Pakistan visit
- His Pakistani counterpart reaffirms commitment to training Malaysian Air Force personnel
ISLAMABAD: Pakistan and Malaysia have agreed to deepen bilateral military cooperation, with a particular emphasis on joint training and air power collaboration, Pakistan’s military said on Friday.
The understanding was reached during a meeting between Pakistan Air Force (PAF) Chief Air Chief Marshal Zaheer Ahmed Baber Sidhu and Royal Malaysian Air Force Chief General Tan Sri Dato’ Sri Mohd Asghar Khan bin Goriman Khan at Air Headquarters in Islamabad.
“The [Pakistan] Air Chief reaffirmed his commitment to enhancing military partnership between the two Air Forces through joint training initiatives, particularly within the realm of air power,” the Inter-Services Public Relations (ISPR) said in a statement. “These initiatives will encompass provisioning of both basic and tactical level training for personnel of the Malaysian Air Force.”
The Malaysian air chief, making his first visit to Pakistan, praised the PAF’s advancements in indigenization and technological innovation. He also expressed interest in bolstering ties through enhanced collaboration in training, maintenance and operational excellence.
The meeting included discussions on defense cooperation, joint exercises and technology sharing, ISPR said, highlighting the robust defense relationship between the two nations.
During his visit, the Malaysian official toured the National Aerospace Science & Technology Park Silicon and the PAF Cyber Command, where he was briefed on Pakistan’s advanced operational capabilities.
He also lauded the innovative projects displayed at the ongoing International Defense Exhibition IDEAS-2024 in Karachi.
Earlier, the Malaysian air chief was presented with a guard of honor upon his arrival, ISPR added.
Pakistan government doubles down on preventing Imran Khan’s Nov. 24 protest
- Interior Minister Mohsin Naqvi warns no talks if Khan’s PTI proceeds with the protest
- Ex-premier’s party plans a ‘long march’ to Islamabad, seeking his release from prison
ISLAMABAD: Pakistan’s Interior Minister Mohsin Naqvi on Friday vowed to implement the Islamabad High Court’s (IHC) order, refusing to allow former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party to stage the Nov. 24 protest in the federal capital demanding his release.
The PTI has announced a “long march” to Islamabad, primarily to pressurize the government to end Khan’s imprisoned that has lasted for over a year on what his party contends are politically motivated charges. The protest also aims to raise PTI’s voice against alleged rigging in the February 8 general elections while calling for measures to ensure judicial independence, which the party says has been undermined by the 26th constitutional amendment.
Only a day earlier, the IHC directed the government to form a committee to engage in talks with the PTI, emphasizing the need to avoid disruptions during the three-day visit of Belarusian President Aleksandr Lukashenko to discuss bilateral economic cooperation. The court expressed hope that the PTI would allow “meaningful communication” with the administration while acknowledging that the maintenance of law and order would be the government’s priority if there was no breakthrough between the two sides.
Addressing the media in Islamabad alongside the capital city’s chief commissioner and police chief, the interior minister highlighted that no rally, march or protest would be allowed in the federal capital owing to the Belarusian president’s visit to the country, as per the IHC order.
“No one will be allowed to stage a rally or protest in Islamabad in compliance with the high court order,” Naqvi said. “After the IHC order, we will implement it 100 percent at any cost. We are bound by the law to implement it.”
Regarding the IHC directions to hold talks with the PTI party leadership, the minister said he would speak to Prime Minister Shehbaz Sharif in the evening to constitute a committee “but definitely if they stage a protest, this [negotiation] will get difficult.”
Islamabad’s district magistrate has already imposed a two-month ban on the gathering of more than five people in the capital using Section 144 of the Criminal Procedure Code (CrPC), which allows the government to prohibit various forms of political assembly, gatherings, sit-ins, rallies, demonstrations and other activities for a specified period.
In response to a question about whether the government was in touch with Adiala Jail, where ex-premier Khan is currently incarcerated, Naqvi said he has no contact with anyone there.
The interior minister also highlighted that the capital city’s administration did not receive any application from the PTI to stage a protest.
He made it clear that people violating the court orders would be responsible if there was any loss of life during the Nov. 24 protest.
Naqvi also said that he agreed with the residents of Islamabad that shops, roads, businesses and mobile signals should not be shut down but noted there was no other way of dealing with such protests.
“If they want to come and protest [in Islamabad], I’ll be the one who will say that no talks should take place,” he concluded. “If they want to hold talks, they should do it in a proper manner. This is no way that on one side they protest and on the other call for talks.”
Earlier this week, Pakistan’s interior ministry had authorized the deployment of paramilitary Punjab Rangers and Frontier Corps troops in Islamabad to maintain law and order.
Pakistan’s parliament also passed a law earlier this year to regulate public gatherings in Islamabad, specifying timings for rallies and designating specific areas. The law prescribes three-year jail terms for participants in illegal assemblies and 10-year imprisonment for repeat offenders.
Army chief vows action after deadly week of militant attacks in Pakistan
- Twelve soldiers were killed on Tuesday as militants attacked a checkpost in the northwestern Bannu district
- Gunmen opened fire on vehicles carrying minority Shiite community members in KP province on Thursday, killing 41
ISLAMABAD: Pakistan Army Chief General Asim Munir vowed action against militants on Friday, following a week of deadly attacks in which dozens of civilians and security officials have been killed in the country’s northwest.
In the latest attack, gunmen opened fire on vehicles carrying members of the minority Shiite community in Pakistan’s Khyber Pakhtunkhwa province on Thursday, killing at least 41 people in one of the region’s deadliest such attacks in recent years. The assault took place in Kurram, a district where sectarian clashes have killed dozens of people in recent months. No group has claimed responsibility.
On Tuesday, ten Pakistan army soldiers and two from the paramilitary Frontier Constabulary were killed on Tuesday as militants attacked a checkpost in the northwestern Bannu district.
Pakistan’s Khyber Pakhtunkhwa (KP) province in the northwest and the remote southwestern province of Balochistan have both seen an increase in strikes by militants this year.
“He [Munir] reiterated the army’s firm resolve to dismantle hostile terrorist networks and eradicate the illegal spectrum undermining national security,” the army’s media wing said in a statement, quoting Munir as saying after he attended a security meeting in Peshawar, the provincial capital of Khyber Pakhtunkhwa.
“He assured that through synchronized and robust operations, Pakistan Army in collaboration with Law Enforcement Agencies will relentlessly hunt down the enemies of peace to ensure lasting stability and security.”
In a separate statement, the army said it had carried out three operations in Balochistan on Nov. 20-22, in which four militants had been killed.
On Tuesday, Prime Minister Shehbaz Sharif chaired a meeting of civil and military leaders who gave the go-ahead for a "comprehensive operation" against separatist insurgents in Balochistan.
