KSE-100 INDEX GAINS AMID POSITIVE TRADING SESSION
BUSINESS NEWS PAKISTAN: The KSE-100 index closed at 78,275.65, up by 335.07 points (0.43%). The index saw an intraday high of 78,679.50 and a low of 77,968.91. Volume was 219.56 million shares. Fertilizer, Oil & Gas, and Power sectors supported the index, while Commercial Banks and Food sectors weighed it down. Key contributors were FFC (+221.16 points) and OGDC (+129.16 points). The broader market’s All-Share index gained 67.16 points to close at 49,314.22 with a volume of 469.76 million shares.
GOLD PRICE PER TOLA IN PAKISTAN TODAY
Gold prices in Pakistan fell on Wednesday, with 24-karat gold selling at Rs240,600 per tola, a decrease of Rs900. This price drop reflects reduced purchasing power. The Karachi Sarafa Association reported 24-karat gold at Rs206,276 per 10 grams and 22-karat gold at Rs189,086 per 10 grams. Silver prices remained stable. Globally, gold traded near $2,310 an ounce as Fed officials suggested interest rates would remain high due to persistent inflation.
Gold (XAU/USD) slipped to around $2,310 on Wednesday as investors absorbed comments from Federal Reserve (Fed) officials, who continue to show reluctance in cutting interest rates due to persistent inflation. The expectation of maintaining elevated interest rates negatively impacts gold, as it increases the opportunity cost of holding the non-yielding asset.
STATE BANK OF PAKISTAN’S AUCTION RESULTS
The State Bank of Pakistan (SBP) sold Market Treasury Bills (MTBs) worth Rs776.7 billion in an auction, surpassing the target of Rs450 billion. Cut-off yields were slightly adjusted for different maturities. Additionally, SBP sold Pakistan Investment Bonds (PIB-PFL) worth Rs106.6 billion against a target of Rs210 billion. Broad money (M2) rose by Rs553.17 billion week-over-week to Rs35.1 trillion as of June 14, 2024.
GOVERNMENT BORROWING AND MONEY SUPPLY
The government of Pakistan’s net borrowing for the fiscal year 2024 reached Rs6.61 trillion. Borrowing categories included budgetary support, commodity operations, and other purposes. The total government borrowing showed a consistent increase compared to previous years.
INCREASED TRADING ACTIVITY AT PMEX
The Pakistan Mercantile Exchange (PMEX) saw a 20.14% increase in trading activity, with a trading volume of Rs22.04 billion. The Metals category, particularly gold, dominated the trading volume. Forex and Energy categories also saw significant trading values.
