PakStox Outlook

PSX this Week : This week KSE100 Index  rose 1.21% closing at 43,551. ( See table ). A positive market performance after two weeks. The week was shortened on account of 23rd Mar holiday. It was also a roll over week. All trading days were positive except one that remained flat. The country remained gripped in political maneuvering following no confidence move against the PM. Added to the drama were public meeting , marches and court references.  In addition in international markets Oil against started rising following increased sanction on Russia and Ukraine situation worsening. Brent again traded above $120. This will increase inflation in Pakistan. Despite pick up in exports we face current account deficit. IMF talks appear to have stalled on relief package the Government had announced. A substantial payment due to China was rolled over creating some maneuvering space for Pakistan.  TBill auction this week also pushed money market rates upward creating substantial diffe...

PSX Today KSE100 Index  closed at  43,523 +0.74%  up  319  pts. PSX today remained weak till 12pm but enacted a good V shape recovery afterwards. PSX is generally under pressure on account of national political scenario, increasing oil prices stroking fears of inflation and balance of payment, and higher interest rates after recent Tbill auction.  Today's initial weakness also reflected roll-over week issues. TRG was more than 5% down at one point and had set tone for the market, but subsequently reversed its downward trend. Subsequently the Market started recovering as positions were being rolled over successfully.  Such a recovery of +500 points shows oversold state of the market and the fact that it is not under any major pressure. Those poring over 'technical' charts are find bullish 'hidden' messages in todays candle bars. See this . Day end trading pattern remained the same. ( See this ). There was however one big c...

Pakistan Day Today  All-India Muslim League adopted a formal political statement on 23rd March 1940 called "The Lahore Resolution". Soon afterwards it was being referred to as 'The Pakistan Resolution'.  (Muslim leaders from across British India at the All-India Muslim League Working Committee session in Lahore) Full text of "THE LAHORE RESOLUTION" Resolved at the Lahore Session of All-India Muslim League held on 22nd-24th March, 1940. (1)   While approving and endorsing the action taken by the Council and the Working Committee of the All Indian Muslim League as indicated in their resolutions dated the 27th of August, 17th and 18th of September and 22nd of October, 1939, and 3rd February 1940 on the constitutional issues, this Session of the All-Indian Muslim League emphatically reiterates that the scheme of federation embodied in the Government of India Act, 1935, is totally unsuited to, and unworkable in the peculiar conditions of this country and is altog...

KSE100 Index (closed at 43,204 down 26 pts)   ended flat continuing its weak trend and meagre trading activity. PSX will be closed tomorrow on 23rh Mar. Market participants will mostly focus on rolling over positions on the 'futures' counter. 'Foreigners' appear to be consistent sellers in 'Banks' after the FATF ruling in the first week of March. In general things are set for a stable market as redemptions pressure on Mutual Funds appears to have been over. Things would be clearer next week as no confidence move against the PM takes shape. Yields were up again in  today's TBill auction . Cut off yields rose by 40 bps to 55bps. 6M TBill cut off yield came at 12.50%, up by 40bps Continuing worry for our public finances managers is rising oil prices and defending the recently announced relief package with the IMF. There appear to be positive tones on that front. But renewed upward trend in Oil prices is something that does not allow the Government of Pakistan...

43,230  200 (0.47%) Todays' positive performance of PSX reflects that despite the national political situation of  the incumbent facing no confidence move, the market is ready to hang on to any positive development no matter how far in the future. Yesterday Barrick Gold Corporation (TSX:ABX), a Canada based mining company,  that produces gold and copper, had announced that 'Barrick and the Governments of Pakistan and Balochistan have reached agreement on a framework that provides for the reconstitution of the Reko Diq project in the country’s Balochistan province. See press release . OGDC and PPL announced their equity interest in the Reko Diq project as per the agreement signed. (See announcement, OGDC , PPL ). This put market participants in a cherry mood. The real reason being that the market is in a oversold position. Investment requirement in the mining project also restricts these companies ability to pay higher cash dividends. But continues to face concerns of...