Tag: Volatility

  • Fourth consecutive decline: Gold price drops by Rs1,800 to Rs218,700 per tola

    Fourth consecutive decline: Gold price drops by Rs1,800 to Rs218,700 per tola

    In line with the reduction in international rates, the per tola gold price in Pakistan experienced a significant decline of Rs1,800 on Wednesday. This marks the fourth consecutive day of falling prices for the precious metal.

    The All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) released data indicating that the price of 24-carat gold decreased by Rs1,800 per tola and Rs1,543 per 10 grammes, settling at Rs218,700 and Rs187,500, respectively.

    Internationally, the price of gold plummeted by $17, reaching $1,934 per ounce in today’s market. Pakistan’s gold rate has exhibited volatility in recent times, largely due to ongoing political and economic uncertainty, high inflation, and currency depreciation. Amid such fluctuations, individuals often turn to gold as a safe investment and a hedge against market instability.

    While gold prices experienced a notable decline, the price of silver saw only nominal losses. Data shared by the APSGJA revealed that the price of silver fell by Rs50 per tola and Rs42.87 per 10 grammes, settling at Rs2,550 and Rs2,186.21, respectively.

    In other market developments, the local currency made nominal gains against the dollar, increasing by Rs0.24 or 0.08 per cent. The interbank market witnessed the closing exchange rate of Rs286.98 on Tuesday.

    The recent downward trend in gold prices in Pakistan reflects the influence of international market conditions. Despite these fluctuations, gold remains a sought-after investment during times of economic and political uncertainty, providing individuals with a secure and reliable asset.

  • Food price hikes pushes weekly inflation to 3.38 per cent

    Food price hikes pushes weekly inflation to 3.38 per cent

    According to the Pakistan Bureau of Statistics (PBS), the Sensitive Price Indicator (SPI) for the week ended June 16, 2022, surged by 3.38 per cent due to increases in the prices of food and non-food items.

    The year-over-year (YoY) trend indicates a 27.82 per cent rise, owing primarily to an increase in rates of following:

    Onions (135.31 per cent), diesel (132.61 per cent), tomatoes (117.27 per cent), petrol (110.16 per cent), vegetable ghee 1 kg (81.76 per cent), mustard oil (80.88 per cent), pulse Masoor (74.77 per cent), cooking oil 5 litre (71.52 per cent), vegetable ghee 2.5 kg (68.47 per cent), LPG (60.97 per cent), garlic (57.72 per cent), washing soap (52.73 per cent), garlic (57.72 per cent (51.11 per cent).

    On the flip side, a considerable decrease was reported in prices of chilli powder (43.42 per cent), pulse Moong (18.06 per cent), sugar (10.79 per cent), bananas (0.83 per cent), gur (0.45 per cent).

    According to the most recent data, the SPI increased from 182.88 per cent to 189.07 per cent during the week ended June 9, 2022.

    The SPI increased by 2.85 per cent, 3.45 per cent, 3.10 per cent, 3.12 per cent, and 3.10 per cent for consumption groups up to Rs17,732 and Rs17,733 to Rs22,888, Rs22,889 to Rs29,517, and Rs29,518 to Rs44,175 and above Rs44,175 respectively.

    According to the PBS, out of 51 items, 36 (70.59 per cent) increased in price, 06 (11.76 per cent) decreased in price, and 09 (17.65 per cent) remained stable during the week.

    Increase: Vegetable ghee Dalda/Habib or other superior quality 1 kg pouch each (4.95 per cent), tea prepared (4.83 per cent), bread plain (4.37 per cent), toilet soap Lifebuoy (4.13 per cent), pulse Masoor (3.50 per cent), cooking oil Dalda 5 litre tin each (2.87 per cent), Sufi washing soap (2.33 per cent), mustard oil (2.24 per cent), vegetable ghee Dalda/Habib 2.5 kg tin each (1.93 per cent), pulse Mash (1.71 per cent), beef with bone (1.50 per cent), energy saver (1.04 per cent), curd (1.01 per cent), mutton (0.89 per cent), eggs (0.85 per cent), salt powdered (0.79 per cent), lawn printed Gul Ahmed/Al Karam (0.77 per cent), basmati broken (0.68 per cent), garlic (0.59 per cent), tomatoes (0.49 per cent), milk fresh (0.45 per cent), powdered milk Nido (0.41 per cent).

  • After five days of losses, British stocks holding firm

    After five days of losses, British stocks holding firm

    A day after economic slowdown fears dragged the major British stocks to their sixth straight session of losses, UK equities stabilised on Tuesday, with some positive momentum from financial sectors and some excellent earnings announcements.

    By 0712 GMT, the FTSE 100 had up 0.6 per cent, with shares in British bank HSBC up 2.6 per cent providing the biggest boost to the blue-chip index.

    Following volatile crude prices, oil majors BP Plc and Shell Plc climbed 1.5 per cent and 0.8 per cent, respectively.

    After finishing at its weakest level in more than three months on Monday, the domestically focused mid-cap FTSE 250 index gained 0.7 per cent. Paragon Banking increased by 4.7 per cent after raising its expectations for 2022 and indicating robust new lending growth.

    FirstGroup jumped 1.2 per cent when the transportation company reported a higher yearly profit and restarted dividend payments, as passenger numbers on its buses increased after COVID-19 limitations were relaxed.

    Crest Nicholson rose 6.1 per cent after projecting an adjusted profit before tax of between 135 and 140 million pounds for fiscal year 2022. In 2021, the housebuilder made an adjusted profit of 107.2 million pounds.

  • Microsoft reduces profit estimation due to market volatility

    Microsoft reduces profit estimation due to market volatility

    Microsoft slashed its fourth-quarter profitability and earnings projections on June 2, becoming the latest U.S. corporation to notify of the impact of a stronger dollar.

    An aggressive Federal Reserve and increased geopolitical tensions have driven the dollar up 14 per cent against a basket of currencies in the last year, forcing companies like Coca-Cola Co and Procter & Gamble to lower their expectations for the rest of the year.

    A stronger dollar generally consumes the earnings of multinational corporations that have extensive global operations and convert foreign currencies into dollars. Microsoft has lowered its sales forecast for all three segments, which include Windows products, cloud services, and personal computing.

    Corporate hedging activity has increased as more businesses seek to protect their revenues from the impact of market volatility in the face of rising inflation. It’s indeed common for businesses to preserve themself from unusual currency transitions, however, the intensity comes after years of low forex fluctuation when market volatility had little impact on income.

    Revenue for the quarter is expected to be between $51.94 billion and $52.74 billion, down from a previous range of $52.40 billion to $53.20 billion. Microsoft reduced its profit forecast from $2.28 to $2.35 per share to between $2.24 and $2.32 per share.

    Considering Refinitiv data, analysts expect earnings per share of $2.33 on revenue of $52.87 billion. In April, the company forecasted double-digit revenue growth for the next fiscal year, owing to increased demand for its office software and cloud services as economies reopen and businesses shift to a hybrid model that allows employees to work from both the office and from home.

  • Pakistani rupee plunges by Rs1.05 against the US dollar

    Pakistani rupee plunges by Rs1.05 against the US dollar

    In today’s interbank session, the Pakistani rupee (PKR) fell by Rs1.05 versus the US dollar (USD), concluding at Rs186.97 per US Dollar, compared to Rs185.92 per USD on April 20.

    The rupee had a tumultuous market session, with an intraday high of Rs187.10 and a lowest of Rs186.25. This depreciation of PKR is attributed to the country’s expanding current account deficit and dwindling foreign exchange reserves. However, the country must pay a significant amount in the final quarter of FY22, putting additional strain on the local unit.

    Pakistan’s currency has lost Rs29.42 versus the US dollar since July 21. According to data published by Mettis Global, the rupee declined by Rs10.45 in CYTD, with the month-to-date (MTD) position showing a drop of 1.87 percent.

    PKR has shed 18.56 per cent versus the US dollar in the previous 52 weeks, with a low of 186.97 today and a peak of 152.27 on May 7, 2021.

    Furthermore, the local currency has lost 10.11 per cent versus the euro since its high on May 5, 2021. Since its high on May 7, 2021, it has declined 13.24 per cent against the pound.

    Read more: PKR continues losing streak against US dollar, sheds Rs1.48

    The PKR slid Rs2.4 against the pound sterling, completing the day at Rs244.4 per GBP, down from Rs241.97 per GBP the previous session. Similarly, the PKR lost three rupees against the euro, closing at Rs204.08 at the interbank today.