Tag: investment

  • Honda Atlas plans to launch hybrid cars as market competition intensifies

    Honda Atlas plans to launch hybrid cars as market competition intensifies

    Honda Atlas Cars Limited (HCAR) has announced plans to enter Pakistan’s hybrid vehicle market, potentially with the HR-V model, as it faces growing competition from rivals like Corolla Cross and Haval. This development was revealed during a briefing on the company’s financial results.

    HCAR disclosed that it intends to invest Rs5 billion in establishing a hybrid vehicle manufacturing plant. However, the company did not provide a specific timeline for this initiative. A similar announcement was made in July of the previous year, but details regarding the vehicle model or its launch date remain undisclosed.

    Analysts have expressed caution regarding the potential success of the new hybrid vehicle. JS Research analyst Wadee Zaman noted that the success of the model will hinge on its features and pricing.

    The company reported that, despite no issues with opening letters of credit, subdued demand and economic challenges have led to a decline in revenues. HCAR also shared localisation levels for its models: Civic at over 60 per cent, City at 73 per cent, and both BR-V and HR-V at less than 50 per cent.

    According to Topline Securities, HCAR benefited from a tax adjustment due to its history of minimum tax payments, which lowered its effective tax rate from 86.9 per cent to 15.2 per cent for FY23-24. Sohail also noted that about 10-15 per cent of the company’s imports come from Japan, with the remainder from Thailand, leading to minor gains from currency devaluation.

    According to Business Recorder, HCAR is also exploring opportunities in spare parts and CPU part exports. The company highlighted that the auto sector has faced significant challenges this year, including a 2 per cent increase in the policy rate, which rose to 22 per cent by March 2024. This contributed to a 45 per cent decline in the overall passenger car market.

    Looking ahead, HCAR anticipates a potential recovery in the industry during MY25, with improvements expected in the lower car segment and hybrids as the policy rate decreases. The sector is projected to regain a reasonable size within two years.

    For the current year, HCAR recorded earnings of Rs1.42 per share, a 40 per cent increase year-on-year but an 85 per cent decrease quarter-on-quarter. Gross margins fell from 8.4 per cent to 6.5 per cent. The company’s management has assured that margins will remain competitive.

  • Actor Javed Sheikh caught up in Rs5 million investment fraud case

    Actor Javed Sheikh caught up in Rs5 million investment fraud case

    In a significant legal development, Rawat Police have registered a fraud case against renowned film star Javed Sheikh and five other individuals, as reported by express.pk. Filed under Section 420 of the Pakistan Penal Code, the charges allege that the accused deceived a couple into investing Rs5 million with promises of lucrative returns.

    The case was filed following the directives of the Additional District and Sessions Judge. Police have summoned all the suspects for investigation. According to the complaint filed by Amjad Mahmood and his wife, Iram Amjad, Javed, along with Jahanzeb Alam, Jamal Khan, Rana Zahid, Azhar Hussain, and Sameer Jadoon, persuaded them to invest money, promising a seven percent monthly profit.

    The couple signed an agreement on official stamp papers and handed over Rs5 million. However, after several months, they did not receive any returns and were allegedly threatened when they demanded their money back. The couple approached the court after the police initially refused to register their complaint.

  • Return rate adjustments implemented for National Savings Schemes

    Return rate adjustments implemented for National Savings Schemes

    The Central Directorate of National Savings (CDNS) has implemented adjustments in the rates of return across several National Savings Schemes, marking the fifth revision in the past five months.

    According to Topline Securities, notable alterations include a reduction in rates for the Special Savings Certificates (SSC), which now stand at 15.70 per cent, down by 10 basis points (bps) from the previous 15.8 per cent.

    Similarly, the Regular Income Certificates (RIC) will yield a return of 14.64 per cent, reflecting a decrease of 12 bps from the prior 14.76 per cent.

    Conversely, rates for Bahbood Savings Certificates (BSC), Pensioners Benefit Account (PBA), and Shuhada Family Welfare Account (SFWA) have been adjusted to 15.36 per cent, following a decrease of 24 bps.

    Meanwhile, the Defence Savings Certificate saw a minor decrease of 1 bps, now offering a return of 14.39 per cent.

    In contrast, Short Term Savings Certificates (STSC) experienced an increase of 24 bps, with rates elevated to 19.24 per cent.

    Additionally, the Sarwa Islamic Term Account (SITA) will provide a return of 19.1 per cent, marking a significant increase of 56 bps.

    The profit rates for Saving Account and Sarwa Islamic Saving Account (SISA) remain steady at 20.5 per cent each.

    These adjustments, effective from May 14, 2024, indicate a strategic move by CDNS to align returns with prevailing market conditions and investment dynamics.

  • MBS likely to visit Pakistan next month

    MBS likely to visit Pakistan next month

    Saudi Crown Prince Muhammad bin Salman is likely to visit Pakistan next month after a recent visit by the Saudi delegation led by Saudi Foreign Minister Prince Faisal bin Farhan Al Saud.

    The News has reported that the Crown Prince, also the Prime Minister of the Kingdom, will come to Pakistan on the invitation of Prime Minister Shehbaz Sharif.

    The schedule of the visit is being worked out through diplomatic channels. Meanwhile, the Saudi foreign minister had highly productive meetings with the political and military leadership before returning home late Tuesday evening.

    Earlier, during the meeting of foreign ministers of both countries, Foreign Minister Dar expressed pleasure at the arrival of the high-powered Saudi delegation, terming it as an “impressive group of dignitaries visiting Pakistan for the first time during his long political career”.

    The Saudi FM stressed the importance of a strategic partnership between the two countries and expressed commitment to strengthening investment in the country.

  • Saudi Arabia to ‘expedite’ $5 billion investment in Pakistan

    Saudi Arabia to ‘expedite’ $5 billion investment in Pakistan

    The Kingdom of Saudi Arabia has pledged to accelerate the first wave of a $5 billion investment package in Pakistan, stated in the joint statement of the Prime Minister of Pakistan and the Crown Prince of Saudi Arabia Mohammed bin Salman (MBS) released by the office of the Spokesperson of the Ministry of Foreign Affairs on Monday.

    PM Shehbaz and Crown Prince MBS held an official meeting on April 7 at Al-Safa Palace in Makkah Al-Mukarramah.

    At the outset, MBS congratulated the premier on assuming the office and expressed warm wishes for his tenure.

    Meanwhile, Prime Minister Shehbaz expressed his gratitude and re-affirmed Pakistan’s commitment to bolstering bilateral ties and economic cooperation.

    Both parties agreed to expedite the first phase of the investment package worth billions.

    Analyst Mosharraf Zaidi pointed out that Saudi investments have not materialized in the past few years and even the pledges have gotten smaller.

  • Email kholo! SIFC to officials

    Email kholo! SIFC to officials

    The Special Investment Facilitation Council (SIFC) has ordered all the focal persons of ministries to regularly check and respond to their emails after it was revealed that no one responded to UAE companies interested in investing in renewable energy projects in Pakistan.

    The event unfolded when the Foreign Office (FO) of Pakistan noted that when its ambassador to UAE held a meeting with Abu Dhabi Development Holding Company (ADQ) focal person to receive an update on the seven bilateral investment MoUs signed with UAE in November 2023.

    It was then revealed that the ADQ had tried to establish contacts with the concerned focal persons through formal channels of communication – emails. However, they received no reply in over a month and despite reminders, they await our response.

    Considering the recent developments, SIFC has requested all focal persons to establish official communication channels with a proper record keeping mechanisms in place. Email is regarded as the official means of communication while WhatsApp is treated as an informal tool.

  • Bitcoin surges to new heights, breaking $70,000 barrier

    Bitcoin surges to new heights, breaking $70,000 barrier

    In a surge of volatile trading, Bitcoin soared to an all-time high of $70,000 on Friday, fueled by the ongoing frenzy in the crypto investment landscape.

    This marks a significant milestone for the leading cryptocurrency, driven by increased investor demand for new U.S. spot exchange-traded crypto products and optimistic expectations of a global decline in interest rates.

    The cryptocurrency reached an impressive $70,105 before experiencing a swift drop, currently settling at $68,317.72. The recent influx of billions of dollars into exchange-traded funds (ETFs) has provided substantial support.

    Furthermore, a positive market outlook is influenced by the upcoming upgrade to the Ethereum blockchain platform, which houses the second-largest cryptocurrency, Ether.

    Additionally, anticipation surrounds the bitcoin “halving” event scheduled for April, which is expected to slow down the rate of bitcoin minting.

    However, scepticism persists regarding the speculative nature of these digital assets. Despite reaching a record high earlier in the week, Bitcoin encountered a sharp reversal, plummeting more than 10 per cent and slipping below the $60,000 threshold.

    Antoni Trenchev, co-founder of the crypto lending platform Nexo, acknowledged the challenges of navigating historic highs, stating, “Volatility defines bitcoin bull markets, and 2024 will be littered with sudden and gut-wrenching 10 per cent–20 per cent plunges.”

    The approval of 11 spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission in late January marked a pivotal moment for the crypto industry.

    This comes after an 18-month-long crypto winter plagued by corporate bankruptcies and scandals.

    In a noteworthy shift, institutional investors, who were once cautious due to the unpredictable nature of crypto, are now committing long-term investments.

    Analysts believe that this institutional support could play a vital role in sustaining the current upward momentum.

    According to LSEG data, net flows into the ten largest U.S. spot bitcoin funds reached $2.2 billion in the week ending March 1, with over $2 billion of that directed towards BlackRock’s iShares Bitcoin Trust (IBIT.O).

  • Toyota manufacturer in Pakistan halts car production amid parts shortage

    Toyota manufacturer in Pakistan halts car production amid parts shortage

    Indus Motor Company (IMC), the manufacturer of Toyota vehicles in Pakistan, has declared a temporary shutdown of its production plant for a duration of six days.

    The decision stems from the company’s concern over low inventory levels and a shortage of essential components, as disclosed in a formal notice submitted to the Pakistan Stock Exchange (PSX).

    The notice specified, “Based on the current low level of inventory of manufactured vehicles and the shortage of parts and components for vehicle manufacturing, due to supply chain challenges, the company has decided to close its production plant from March 6th, 2024, to March 11th, 2024 (both days inclusive).”

    Pakistan’s automotive sector is grappling with various challenges, including the nation’s sluggish economic growth, surging inflation rates, and elevated borrowing costs, all of which are contributing to a decline in vehicle sales.

    To address these challenges, Indus Motor Company recently announced its board’s approval of an investment of approximately Rs3 billion.

    This investment aims to enhance the localization of production, a crucial step in the company’s broader strategy to consistently increase the localization of parts and components in locally manufactured vehicles. 

    This temporary shutdown underscores the broader challenges facing the automotive industry in Pakistan and reflects IMC’s proactive approach to managing its production in response to current market conditions.

  • Bitcoin’s price soars close to $69,000, then pulls back to $65,000

    Bitcoin’s price soars close to $69,000, then pulls back to $65,000

    Bitcoin, the leading cryptocurrency by market value, surged to a two-year peak, surpassing $68,600 on Tuesday and approaching its all-time high.

    The cryptocurrency has seen a notable 50 per cent surge this year, with a significant portion of the increase occurring in recent weeks, marked by inflows into US-listed bitcoin funds.

    During Asian trading hours on Tuesday, Bitcoin hovered around $68,500, reaching a session high of $68,828, just shy of the record peak of $68,999.99 set in November 2021.

    The approval of spot bitcoin exchange-traded funds in the United States earlier this year attracted new significant investors, reigniting enthusiasm reminiscent of the 2021 bull run.

    However, Bitcoin has now retreated to $65,000 as of 9:50 p.m. Kyle Rodda, senior markets analyst at Capital.com, described the current market conditions as “crypto mania 4.0,” suggesting that continued low bond and rate volatility could sustain the momentum, though acknowledging signs of irrational behaviour.

    In the week ending March 1, net flows into the ten largest US spot bitcoin funds totaled $2.17 billion, with over half directed towards BlackRock’s iShares Bitcoin Trust, according to LSEG data.

    Tony Sycamore, a market analyst at IG, expressed optimism about Bitcoin’s potential move towards $80,000 despite short-term overbuying.

    The cryptocurrency rally aligns with record-breaking performances in global stock indexes, including Japan’s Nikkei, the S&P 500, and the Nasdaq.

    Simultaneously, volatility measures in equities and foreign exchange markets are trending downward.

    Ether, Bitcoin’s smaller rival, also surged over 50 per cent for the year, reaching $3,649. Speculation about exchange-traded funds driving inflows has contributed to Ether’s momentum.

    A regulatory filing on Monday revealed that the US Securities and Exchange Commission has delayed its decision on BlackRock’s application for a spot ethereum exchange-traded fund.

    In a separate development, Tether announced that the number of dollar-pegged stablecoins it issued has surpassed $100 billion, providing stability in the cryptocurrency market.

  • 24 karat gold price surges by Rs800 per tola, silver takes a dip

    24 karat gold price surges by Rs800 per tola, silver takes a dip

    In a notable shift in the precious metals market, the per-tola price of 24 karat gold in Pakistan witnessed an increase of Rs800, reaching Rs213,200 on Saturday. This rise is compared to its previous sale at Rs212,400 on the last trading day.

    Similarly, the price of 10 grammes of 24 karat gold experienced an uptick, climbing by Rs686 to Rs182,785 from Rs182,099.  The All Sindh Sarafa Jewellers Association reported that the prices of 10 grammes of 22 karat gold also saw an increase, reaching Rs167,553 from Rs166,924.

    On the other hand, the price of per tola silver exhibited a decrease of Rs30, settling at Rs2,550. Simultaneously, the price of ten grammes of silver witnessed a decline of Rs25.72, reaching Rs2,186.21.

    Internationally, the price of gold ascended by $9, reaching $2,034 from $2,025, as reported by the Association. These fluctuations in the precious metals market reflect the dynamic nature of global economic conditions, influencing prices both domestically and internationally.