Tag: commercial banks

PSX gains over 2,000 points to reach new record high of 78,802

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index surged nearly 2,100 points, setting a new record high of 78,802 during the first trading session post-Eid holidays on Thursday.

At the close of the session, the KSE-100 Index settled at 78,801.53, marking an increase of 2,094.76 points, or 2.73 per cent. According to brokerage house Topline Securities, this represents the fourth-largest single-day increase in the history of the KSE-100 Index.

The stock market was closed from June 17 to June 19, 2024, in observance of the Eid-ul-Adha holidays. Upon reopening, there was notable buying activity in key sectors, including automobile assemblers, commercial banks, fertilizers, oil and gas exploration companies, oil marketing companies (OMCs), and refineries.

Index-heavy stocks such as OGDC, POL, SHEL, SNGPL, MEBL, and HBL traded positively. However, the banking sector made the most significant contribution to the benchmark’s gains.

In the preceding week, the PSX also experienced a bullish trend, hitting record highs after the government maintained the current tax regime for the capital markets. The benchmark KSE-100 Index rose by 2,952.75 points on a week-on-week basis, closing at a then-high of 76,706.77.

June 20, 2024
Pakistan’s forex reserves decline by $63.3 million to $9.09 billion

The State Bank of Pakistan (SBP) has reported a marginal decline in the nation’s foreign exchange reserves, indicating a decrease of $63.3 million or 0.69 per cent week over week (WoW) to $9.09 billion, according to data released on Thursday.

The central bank attributed this downturn primarily to debt repayments. In a statement issued by the SBP, it was highlighted that during the week ending May 24, 2024, SBP reserves experienced a $63 million decrease to reach $9.09 billion, primarily due to external debt repayments.

Similarly, Pakistan’s overall reserves witnessed a decrease of $270 million or 1.85 per cent WoW, amounting to $14.32 billion. Furthermore, commercial banks saw a decline in reserves by $206.7 million or 3.81 per cent WoW, totaling $5.22 billion.

Despite these fluctuations, the current fiscal year has seen a remarkable increase in SBP-held reserves, amounting to $4.63 billion or 103.6 per cent.

This surge follows Pakistan’s attainment of the International Monetary Fund’s (IMF) Stand-By Arrangement (SBA) of approximately $3 billion by the end of June last year.

This arrangement not only bolstered the nation’s reserves but also facilitated access to additional multilateral and bilateral funding.

Furthermore, the ongoing calendar year has witnessed a notable increase of $872.5 million or 10.61 per cent in reserves, reflecting continued efforts to stabilise and strengthen Pakistan’s economic position.

May 30, 2024
SBP sees surge of over $17 million in forex reserves

The latest data released by the State Bank of Pakistan (SBP) revealed a notable rise in the country’s foreign exchange reserves. During the week ending March 8, 2024, SBP’s reserves increased by $17.2 million, marking a 0.22 per cent growth, reaching a total of $7.91 billion.

Additionally, Pakistan’s overall reserves experienced a surge, ascending by $131.3 million, or 1.01 per cent, week-on-week (WoW), to a sum of $13.15 billion. This increase was further complemented by a rise in reserves held by commercial banks, which climbed by $114.1 million, or 2.23 per cent, to reach $5.24 billion.

In a significant development, the second review of the stand-by arrangement (SBA) with the International Monetary Fund (IMF) is slated to take place from March 14 to 18, 2024. This review holds particular importance as it marks the final assessment under the SBA. Upon reaching a staff-level agreement, the final tranche of $1.1 billion will be disbursed, subject to approval by the Executive Board of the IMF.

It is noteworthy that in the current fiscal year, Pakistan has witnessed a substantial increase in its total liquid foreign reserves, amounting to $3.99 billion, or 43.57 per cent. Similarly, the ongoing calendar year has seen a rise of $0.48 billion, or 3.77 per cent.

March 14, 2024
SBP’s foreign exchange reserves rise by $13 million

In a positive development for Pakistan’s economic landscape, the State Bank of Pakistan (SBP) reported a weekly increase of $13 million in its foreign exchange reserves, reaching a total of $8.05 billion as of February 9, according to data released on Thursday.

The country’s overall liquid foreign reserves now stand at $13.15 billion, with commercial banks holding a significant share of $5.1 billion in net foreign reserves.

The central bank, however, did not provide specific details or reasons for the notable upswing in reserves during the mentioned week.

In a statement, the SBP stated, “During the week ended on February 9, 2024, the SBP’s reserves increased by US$ 13 million to US$ 8,056.5 million.”

This positive development comes on the heels of last week’s decrease in Pakistan’s central bank reserves, which experienced a dip of $173 million.

The recent rebound signals resilience and stability in the nation’s economic standing, and financial analysts are likely to scrutinise the factors contributing to this uptick in the coming days.

As the global economic landscape continues to evolve, Pakistan’s foreign exchange reserves play a crucial role in navigating economic challenges, and the recent increase reflects ongoing efforts to bolster the country’s fiscal strength.

Experts anticipate that a robust foreign reserve position will provide a buffer against external shocks and instill confidence in the financial markets.

February 15, 2024
Pakistan’s forex reserves dip by $173 million, SBP cites debt repayments

The State Bank of Pakistan (SBP) has reported a decrease of $173 million in its foreign exchange reserves on a weekly basis, revealing a total of $8.04 billion as of February 2, according to data released on Thursday.

The country’s overall liquid foreign reserves are reported to stand at $13.09 billion, with commercial banks holding net foreign reserves amounting to $5.05 billion.

The SBP has identified debt repayments as the primary factor contributing to the decline in reserves. In an official statement, the SBP stated, “During the week ending on 2-Feb-2024, SBP’s reserves decreased by US$ 173 million to US$ 8,044.0 million due to debt repayments.”

This follows a trend from the previous week when Pakistan’s central bank reserves experienced a decrease of $54 million. The ongoing challenges related to debt servicing continue to impact the nation’s foreign exchange reserves.

February 10, 2024
PSX declines by nearly 1% amid investor focus on Monetary Policy meeting

In today’s financial update, the Pakistan Stock Exchange (PSX) opened the week on a downbeat note, as the benchmark KSE-100 index experienced a decline of 628.33 points, or 0.98 per cent, settling at 63,184.74 by 10:20 am PST.

Investor focus is keenly directed towards the impending Monetary Policy Committee meeting later today.

Expectations loom large that the central bank will maintain the policy rate unchanged, although some are optimistic about the possibility of a marginal rate cut.

The KSE-100 index witnessed a trading volume of 19.534 million shares. Notably, the underperformance is attributed to key sectors, with fertiliser, commercial banks, oil and gas exploration companies, oil and gas marketing companies, and cement collectively contributing to the index’s dip by 138.49, 135.75, 111.02, 40.79, and 39.84 points, respectively.

Specific companies weighing down the index include EFERT with 81.35 points, PPL with 56.52 points, OGDC with 45.06 points, MEBL with 39.27 points, and MCB with 30.37 points.

In the broader market scenario, the All-Share index is trading at 42,871.61, witnessing a net loss of 341.49 points.

It is noteworthy that during the fiscal year, the KSE-100 displayed substantial growth, gaining 21,732 points, or 52.43 per cent. In the ongoing calendar year, there has been a cumulative increase of 734 points, equivalent to 1.17 per cent.

Investors are navigating a dynamic landscape, closely monitoring the evolving economic indicators and anticipating the outcomes of the central bank’s policy decisions.

January 29, 2024
State Bank of Pakistan’s reserves soar to $8.27 billion, highest level since July 2023

In the latest report, the State Bank of Pakistan (SBP) announced a significant rise of $243.1 million, or 3.03 per cent week-on-week, in foreign exchange reserves, reaching $8.27 billion as of January 19, 2024.

This boost is credited to the reception of the second installment of SDR 528 million, equivalent to $705.6 million, from the International Monetary Fund (IMF).

After settling government external debt repayments, the net increase for the week stands at $243.1 million, marking the highest level for SBP’s reserves since July 14, 2023.

Furthermore, the total reserves of the country witnessed an increase of $196.3 million, or 1.49 per cent, totaling $13.34 billion during the same week.

In contrast, commercial banks experienced a decline in reserves, dropping by $46.8 million, or 0.91 per cent, to $5.07 billion week-on-week.

It is noteworthy that in the current fiscal year, total liquid foreign reserves have shown a substantial growth of $4.18 billion, reflecting a 45.65 per cent increase.

Similarly, the ongoing calendar year has seen a rise of $0.12 billion, marking a 0.91 per cent increase in the nation’s reserves.

January 26, 2024
Pakistan’s forex reserves witness a dip of $127 million

In a recent report, it was revealed that the foreign exchange reserves held by the State Bank of Pakistan (SBP) experienced a decline of $127 million during the week ending January 12, settling at $8.03 billion.

The country’s total liquid foreign reserves, including those held by commercial banks, amounted to $13.15 billion. Specifically, commercial banks held net foreign reserves of $5.12 billion.

The SBP attributed the reduction in reserves to debt repayments, stating, “During the week ending on January 12, 2024, the SBP’s reserves decreased by US$ 127 million to US$ 8,027.4 million due to debt repayments.”

Notably, the previous week had also seen a decrease in Pakistan’s central bank reserves, amounting to $66 million.

In a significant development, Pakistan received a tranche of $705.6 million from the International Monetary Fund (IMF), as confirmed in a statement by the SBP on Wednesday.

The central bank stated, “The SBP has received SDR 528 million (equivalent to $705.6 million) on January 16, 2024, from the IMF following the successful completion of the first review by the Executive Board of the IMF under Standby Arrangement (SBA).”

The impact of this disbursement will be reflected in the central bank reserves for the week ending January 19.

January 19, 2024
PSX starts 2024 with 1,554 points surge in KSE-100 index

The Pakistan Stock Exchange (PSX) commenced the year 2024 on a positive note, witnessing a noteworthy surge in its key benchmark, the KSE-100 index.

The index exhibited a robust increase of 1,554.63 points, or 2.49 per cent, reaching 63,839.67 during the morning trading session.

This promising start follows a remarkable performance in 2023, where the KSE-100 index recorded a substantial gain of 54.5 per cent, marking the highest yearly return since 2009.

Concluding the previous year at 62,451 points, the index gained 21,632 points and earned the distinction of being the fourth best-performing stock market in 2023.

During Monday’s session, the KSE-100 index found support from key sectors, with oil and gas exploration companies contributing 398.36 points, commercial banks adding 395.29 points, the fertiliser sector contributing 130.32 points, oil and gas marketing companies with 109.21 points, and power generation and distribution contributing 109.02 points.

Noteworthy companies driving the index upwards include PPL with 172.23 points, OGDC with 162.5 points, HUBC with 84.59 points, UBL with 82.81 points, and MCB with 77.46 points.

In the broader market context, the All-Share index is trading at 42,803.03, reflecting a net gain of 886.75 points.

It’s important to note that this information is based on an intraday update, capturing the current dynamics of the market.

January 1, 2024
SBP-held forex reserves surge to $7.76 billion in December

In the week concluding on December 22, 2023, Pakistan witnessed a substantial increase in its total liquid foreign reserves, reaching a noteworthy $12,855.7 million.

This surge was reported by the State Bank of Pakistan (SBP), which highlighted that the central bank’s reserves saw a remarkable uptick to $7,757.1 million during the same period.

The SBP revealed that the surge in reserves, amounting to $852 million, was primarily attributed to official inflows from the Government of Pakistan received during the week under review.

Simultaneously, commercial banks in the country reported net foreign reserves amounting to $5,098.6 million, further contributing to the overall resilience of Pakistan’s financial position.

This positive development follows the previous week’s figures, ending on December 15, 2023, where the total liquid foreign reserves were recorded at $12,068.4 million.

During this period, the central bank held reserves worth $6,904.8 million, with commercial banks reporting net foreign reserves of $5,163.6 million.

In contrast to the positive financial indicators, Pakistan’s auto industry faced significant challenges in 2023, marked by a sharp decline in car sales of up to 55 per cent. Factories involved in manufacturing car parts also experienced a substantial production cut of 70 per cent.

The persistent challenges in the auto sector were attributed to the exchange rate crisis, causing a decline in income until the previous year.

The repercussions of reduced car sales were not limited to impacting the national Treasury; they also resulted in a noticeable decrease in revenue from products.

An essential factor in this context is the adjustment made by automobile companies following a decrease in the value of the US dollar against the Pakistani rupee.

In the closing months of 2023, these companies responded by slashing the prices of their units, reflecting the dynamic interplay between economic forces and market conditions.

December 29, 2023