PAKISTAN BUSINESS NEWS: The foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $238.9 million or 2.62% WoW to $8.9 billion during the week ended on June 21, 2024, data released by the State Bank of Pakistan showed on Thursday.
REASON FOR DECLINE
The central bank cited external debt repayments as the reason for this decline. “During the week ended, SBP reserves decreased by $239m due to external debt repayments,” said a statement issued by the SBP.
TOTAL RESERVES DECREASE
Similarly, the country’s total reserves decreased by $207.3m or 1.44% WoW to $14.21bn. The reserves held by commercial banks rose by $31.6m or 0.60% WoW to $5.31bn.
SIGNIFICANT INCREASE IN FISCAL YEAR
In the current fiscal year, SBP-held reserves have increased by $4.43bn or 99.17%. This significant boost comes after the country secured the International Monetary Fund’s (IMF) Stand-By Arrangement (SBA) of about $3bn by end-June last year, which also helped unlock multilateral and bilateral funding. Meanwhile, the current calendar year has seen an increase of $674.6m or 8.21%.
SUMMARY OF HOLDING AND WEEKLY CHANGE
| Foreign reserves held by | June 21, 2024 | June 14, 2024 | Change | % Change |
|---|---|---|---|---|
| State Bank of Pakistan | 8,895.8 | 9,134.7 | -238.9 | -2.62% |
| Net Foreign Reserves Held by Banks | 5,311.5 | 5,279.9 | 31.6 | 0.60% |
| Total Liquid Foreign Reserves | 14,207.3 | 14,414.6 | -207.3 | -1.44% |
KSE-100 INDEX PERFORMANCE
The benchmark KSE-100 index concluded Thursday’s trading session at 78,528.25, showing an increase of 252.61 points or 0.32%. The index remained positive throughout the day, showing an intraday high of 78,978.60 (+702.96) and a low of 78,294.23 (+18.58) points. The total volume of the KSE-100 index was 137.89 million shares. Of the 100 index companies, 61 closed up, 35 closed down, 3 were unchanged, while 1 remained untraded.
SECTORAL SUPPORT AND DECLINES
KSE-100 index was supported by Commercial Banks (+67.05pts), Fertilizer (+50.36pts), Oil & Gas Exploration Companies (+45.53pts), Automobile Parts & Accessories (+40.53pts), and Pharmaceuticals (+22.26pts). On the flip-side, the index was let down by Power Generation & Distribution (-15.49pts), Oil & Gas Marketing Companies (-12.66pts), Textile Composite (-11.52pts), Technology & Communication (-6.39pts), and Leather & Tanneries (-5.03pts).
TOP PERFORMING COMPANIES
Companies that added points to the index were FFC (+57.69pts), UBL (+47.54pts), THALL (+40.53pts), OGDC (+37.58pts), and MARI (+30.84pts). Conversely, the index was let down by ENGRO (-42.79pts), MCB (-41.59pts), MEBL (-32.50pts), PPL (-21.48pts), and NPL (-15.01pts).
BROAD MARKET PERFORMANCE
In the broader market, the All-Share index closed at 49,487.23 with a net gain of 173.01 points or 0.35%. Total market volume was 283.54 million shares compared to 469.76m from the previous session while traded value was recorded at Rs11.07 billion showing a decrease of Rs8.71bn. There were 155,969 trades reported in 424 companies with 209 closing up, 150 closing down, and 65 remaining unchanged.
TOP TEN BY VOLUME
| Company | Volume |
|---|---|
| WTL | 27,558,409 |
| KEL | 21,974,252 |
| OGDC | 16,928,743 |
| PASL | 15,202,981 |
| JSBL | 13,366,157 |
| PTC | 12,361,457 |
| FABL | 8,965,112 |
| DFML | 7,386,340 |
| CNERGY | 6,110,971 |
| TRG | 5,451,017 |
KSE-100 GAIN IN FISCAL AND CALENDAR YEAR
To note, the KSE-100 has gained 37,076 points or 89.44% during the fiscal year, whereas the ongoing calendar year has witnessed a cumulative increase of 16,077 points, equivalent to 25.74%.
PAKISTANI RUPEE APPRECIATION
The Pakistani rupee (PKR) appreciated by 2.5 paisa against the US dollar in Thursday’s interbank session as the currency settled the trade at PKR 278.38 per USD, compared to the previous session’s closing of PKR 278.4 per USD. The currency saw an intraday high (bid) of 278.5 and a low (ask) of 278.25.
OPEN MARKET RATES
In the open market, exchange companies quoted the dollar at 277.75 for buying and 280.50 for selling. In comparison to major currencies, PKR lost 30.74 paisa against the Euro, closing at 297.56 compared to the previous value of 297.25. The British Pound became cheaper by 36.56 paisa closing at 351.67 compared to 352.04 from a day ago. The Swiss franc saw losses of 51.23 paisa, closing at 310.12 compared to 310.63 from the previous session. Against the Japanese Yen, PKR gained 0.24 paisa, closing at 1.7339 versus 1.7363 a day ago. The Chinese Yuan lost 1.5 paisa, closing at 38.3 against 38.31 from the previous session. The Saudi Riyal closed at 74.2 with a loss of 0.56 paisa from its value of 74.21 a day ago. The U.A.E Dirham decreased in value by 0.58 paisa from 75.79 a day ago to 75.79.
RUPEE PERFORMANCE IN FISCAL AND CALENDAR YEAR
During the current financial year, PKR has appreciated against the Dollar by 7.62 rupees or 2.74%. While the current calendar year has seen PKR appreciate by 3.49 rupees or 1.25%.
MONEY MARKET UPDATE
In the Money Market, the benchmark 6 Month Karachi Interbank Bid and Offer rates inched up by 2 bps to 19.91% and 20.16%.
PSX ADJUSTS TECHNICAL SERVICES CHARGES
Due to high inflation and increasing costs of hardware, software, and other operating expenses, Pakistan Stock Exchange Limited (PSX) has adjusted its technical services charges. “PSX always tries to offer the best trading platform and support services at affordable prices, and expects clients’ understanding and support in this regard,” a notice issued today reads. PSX has informed that it has decided to change the charges after necessary due diligence with key stakeholders. Moreover, the revised schedule of charges is attached with the notice and also published on the PSX Website along with the details of service-wise rates. Despite multiple operational and financial challenges, PSX has provided the best possible subsidy on all IT services. It is worth noting that the revised schedule of charges will be effective from July 01, 2024.
ITHMAAR HOLDING STAKE SALE IN FAYSAL BANK
Ithmaar Holding is looking to sell 66.7% of the issued and paid-up capital in Faysal Bank Limited (PSX: FABL) at a premium of 76.6% from the current market prices, a report by Topline Securities noted. Detailed minutes of Ithmaar Holding’s Extra-Ordinary General Meeting (EOGM) released on June 13, 2024, mentioned that, against this stake transfer, Ithmaar Holding will receive $225 million. “This translates into a total valuation of $450m for the Bank, in our view,” Topline Securities stated. To recall, Ithmaar Holding held its meeting in May to get approval for the transfer of 66.7% of the issued and paid-up capital in FABL to a company entirely owned by Ithmaar Holding, Ithmaar Bank or IB Capital (Faysal Bank JV). Following the transfer of shares in Faysal Bank to the Faysal Bank JV, 75% of the issued and paid-up capital in the Faysal Bank JV would be transferred to Bahrain-based GFH Financial Group. This translates into an indirect transfer of around 50% stake. With the exchange rate of PKR 279 per USD, the market value assigned to FABL bank is Rs126 billion or PKR 85 per share. However, the current price of FABL share stands at Rs48.6.
FOODS PRICE INDEX INCREASES
The Pakistan Bureau of Statistics (PBS) reported that the Sensitive Price Indicator (SPI) for the week ended June 20, 2024, increased by 0.56% WoW, with an increase in prices of essential food items. The increase was mainly due to the rising prices of Tomatoes (+40.88% WoW), Chillies Powder (+20.81% WoW), LPG (+2.38% WoW), Electricity for Q1 (+1.35% WoW), and Bananas (+1.06% WoW).
AUTO SECTOR PRODUCTION SUSPENSION
Several auto sector companies including Honda Atlas Cars (Pakistan) Limited, Pak Suzuki Motor Company Limited, and Indus Motor Company Limited announced a suspension in production due to issues with import restrictions and economic challenges.
GLOBAL GOLD MARKET
In Pakistan, the price of gold increased on Thursday. A tola of 24-karat gold now costs Rs241,000, an increase of Rs 400. The Karachi Sarafa Association reports that the cost of 10 grams of 24-karat gold increased to Rs206,619, or an increase of Rs343 per tola. In a similar vein, it was reported that 22-karat gold cost Rs189,400 every 10 kg.
