PakStox Outlook

Pakistan: IMF Reaches Staff-Level Agreement The Pakistani authorities and the IMF have reached a staff-level agreement on a 37-month Extended Fund Arrangement (EFF) worth approximately US$7 billion, pending approval by the IMF's Executive Board and confirmation of necessary financing from Pakistan’s development and bilateral partners. (12 July 2024) The program aims to build on last year's macroeconomic stability by strengthening public finances, reducing inflation, rebuilding external buffers, and removing economic distortions to encourage private sector growth. Key policy goals include: Sustainable Public Finances: Gradual fiscal consolidation through tax reforms and increased resources for development and social spending. FY25 budget aims for a 1% GDP primary surplus, supported by fairer taxation and expanded social protection. Federal-Provincial Fiscal Balance: A National Fiscal Pact reallocates spending responsibilities, enhancing provincial tax efforts, including harmoniz...

12 Jul 2024: The KSE100 again failed to maintain the 80k level, which it had gained by reaching an intraday high of 83,322. It closed the day by losing 48 points, ending at 79,944. The key event today was the market's reaction to the Supreme Court's decision to restore some seats to the PTI in a judgment announced today. Upon the announcement, which was seen as weakening the incumbent government, the market tanked over 1,200 points. However, the recovery was quick, establishing the bullish trend in the market. Today again local mutual funds were net sellers of over $1.4 million. There was no significant activity by the Foreign investors today.  This week, the market remained under selling pressure primarily from mutual funds and lost approximately 269 points for the week. Major Gainers/Losers Today: Indus Motor Com (PSX: INDU) is temporarily halting production at its plant from July 15th to 22nd, 2024 due to a shortage of vehicle parts and low inventory caused by supply chain c...

11 July 2024: The KSE100 index made an intraday high of 80114, but gave up some of those gains to close at 79,992, still up 151 points for the day. Trading in general remained subdued. Foreign Corporates were net buyers today of $1.4 million. Foreign Investors so far have not turned into major sellers at PSX. Local Mutual Funds again net seller today of a big amount of $0.98 million. Banks/DFI were also net sellers.  Since first of this month mutual funds have made a net sale of over $14.7 million. Following are the major Gainers/Losers of the day; The market is adjusting to the post-budget scenario. A strong upward movement, driven by pre-emptive buying before the new capital gains tax regime took effect on June 30th, has overshadowed the negative assessment of the future economic course following the federal budget announcement.   The increase in petroleum prices and elevated exchange rates, coupled with a strained public finances situation, are choking the economy. It ...

10 July 2024: KSE100 Index broke 80K level and closed at 79,842 ▼ 831 points. Good amount of net buying by ‘Foreign Corporates’ of over $ 1.9 million. The market was pressured by local mutual funds selling. Today they made a net selling of over $ 1.6 million after two days of respite. Read More Saudi Arabia warned to sell European bonds if Russian frozen assets are seized. S&P and Nasdaq Continue to Top Records WTI crude oil futures edged up toward $82 per barrel on Wednesday after the EIA reported a larger-than-expected decline in US crude stockpiles.

OGC reported mixed results for Q3 2024. Earnings per share (EPS) came in at Rs. 11.1, accompanied by a cash dividend of Rs. 2 per share. Although net income declined year-over-year and compared to the previous quarter, revenue saw a modest year-over-year increase. Notably, gross profit margin improved to 64%, exceeding the average of the past four quarters. This positive trend was partially offset by a rise in financial charges and a higher tax rate compared to the historical average. Despite the decline in net income, OGDC maintains a strong position within key Pakistani stock indices and holds significant reserves of the country's oil and gas resources.  See OGDC SnapShot

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