Current Account Surplus for First Time in 4 Years in October 2019

[Yaseen1]

buying and selling of stocks in stock market is volatile and unstable short term investment,we need long term investment for better economic growth in long run,these investors in stock market take out profits and investment as quickly as they invest,also govt has given high tax rebates for stock market investment so this benefits only to foreign investors than our economy in real sense,if foreign investor buy share on new IPO then it will be real investment which benefits new companies or already existing companies who float new shares in stock exchange

Market watch: Bullish momentum continues as KSE-100 soars past 38,000 points
By Our Correspondent
Published: November 18, 2019
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Benchmark index increases 827.67 points to settle at 38,411.56. PHOTO: AFP

KARACHI: The benchmark KSE-100 index skyrocketed and gained 828 points on Monday, crossing the 38,000-point mark and trading at a seven-month high, as political noise subsided in the country.

Investor sentiment strengthened following the Lahore High Court’s decision to remove former prime minister Nawaz Sharif’s name from the Exit Control List (ECL), which permitted him to travel abroad for medical treatment.

The KSE-100 index shot up as soon as trading began and rose over 500 points within a few minutes. Strong investor sentiment sparked a buying spree, which maintained the uptrend for the rest of the day.



A few dips were seen but they were rectified timely. All index-heavy sectors made handsome gains.

At close, the benchmark KSE 100-share Index recorded an increase of 827.67 points, or 2.2%, to settle at 38,411.56.

“The easing of political tensions has pushed the market upwards,” Arif Habib Limited Head of Research Samiullah Tariq said while talking to The Express Tribune.

He added that political tensions subsided after former premier Nawaz Sharif was granted permission to travel abroad for medical treatment and the market welcomed the development.

Apart from that, an increase in foreign investment in fixed-income instruments like treasury bills improved the mood at the bourse and sparked extended buying across the board.

Topline Securities CEO Muhammad Sohail said expectations of lesser political noise following the Lahore High Court’s decision strengthened investor sentiment.

In a report, Arif Habib Limited stated that the KSE-100 index crossed the 38,000-point level for the first time after April 3, 2019. The market was trading at a seven-month high, it added.

JS Global analyst Maaz Mulla said bulls continued to engage in a buying spree at the Pakistan Stock Exchange as the benchmark KSE-100 index closed the week’s first day with a substantial gain of 828 points (+2.2%).

“Increased market activity was witnessed as daily volumes rose to 466 million shares while daily value stood at $100 million despite mixed political noise from within and beyond borders,” he said.

Major volume leaders of the day were The Bank of Punjab (+3.6%), K-Electric (+5.1%) and Fauji Cement (+2.8%), contributing a cumulative 85 million shares.

Cement, exploration and production and banking sectors led the gains where Kohat Cement (+5%), Lucky Cement (+4.6%), Maple Leaf Cement (+2.6%), DG Khan Cement (+2.3%), Pakistan Petroleum (+1.7%), Oil and Gas Development Company (+0.5%), Pakistan Oilfields (+2.4%), National Bank (+5%), Meezan Bank (+4.3%), UBL (+3.9%) and The Bank of Punjab (+3.6%) were the major movers. They helped the index touched the intra-day high of 869 points.

“Moving forward, we expect the market to remain positive, however, we recommend investors to book profit on strength,” the analyst added.

Overall, trading volumes increased to 466.1 million shares compared with Friday’s tally of 369 million. The value of shares traded during the day was Rs15.5 billion.

Shares of 412 companies were traded. At the end of the day, 295 stocks closed higher, 98 declined and 19 remained unchanged.

The Bank of Punjab was the volume leader with 37.6 million shares, gaining Rs0.39 to close at Rs11.26. It was followed by K-Electric with 28.4 million shares, gaining Rs0.21 to close at Rs4.31 and Fauji Cement with 18.8 million shares, gaining Rs0.46 to close at Rs16.83.

Foreign institutional investors were net buyers of Rs658.4 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.


Read more: ECL , KSE-100 , Lahore High Court

 

[Flight of falcon]

So you take down the Stock Exchange from around 60,000 base points to low 30,000, post a small upward trajectory which is still far away from where it was 1-2 years ago and people go apeshit crazy. This phenomenon is just unreal.



Thanks for being honest enough to ask me what you, apparently matric pass youthian, could NOT understand. Tomato today is over Rs. 300/kg because of import restrictions; which had to be relaxed to allow import of tomatoes but that was as a reaction rather than proactive approach. The general masses suffered because of nonsense clowns in the Government and those supporting their every move, outside the Government.

And tomatoes is just 1 example out of each and everything that has gotten very very expensive thanks to the naya Pakistan.

This is what Nawaz and his corruption has produced . People with zero understanding of issues but yet mouth bigger than donkey’s.
It should be mandatory for all kids to get proper iodine so no one grows up to be stupid and Patwari.

 

[Type59]

Ishaq Dar would post a 1.5 billion deficit and pml n will hail it as a sign of progress.

 

[B.K.N]

tomatoes are selling for more than Rs. 300/kg.....some achievement indeed!

At the end harvest season tomatoes become expensive due to decrease in supply
In past vegetables were imported from India to decease prices I think patwaris want Pakistan to import tomatoes from India

 

[ejaz007]

When imports decline (due to whatever reason) current account deficit is bound to come down. We need to increase the exports which despite devaluing rupee has not been substantial.

One of the possible reason could be that local industry demand is decreasing (which utilize imports such as automobile, textile, E&P sector and other manufacturing etc.) and hence import is going down.

Textile industry is dead, large scale manufacturing almost dead, agriculture stuck and yet we are celebrating current account deficit.

Inflation is another cause of worry.

 

[B.K.N]

When imports decline (due to whatever reason) current account deficit is bound to come down. We need to increase the exports which despite devaluing rupee has not been substantial.

Who said exports are increasing?
This thread is about current account surplus and it's not easy to increase exports because pakistan has nothing to export except humans and agricultural products
A poor country like Pakistan can't afford expensive imports and orange train type projects

 

[ps3linux]

@ps3linux PakPositive News.... but MarasiMedia is not showing it...

But then MarasiMedia is owned by the CriminalEnterprise.... bent on spreading fasad in OurLand!

Thanks, over the weekend had a meeting with some finance people from abroad, it was a very limited gathering with a specific purpose Hammad Azhar was also there and he told about CA surplus, when it comes to Pakistani Bureaucracy and the ministers parroting the tunes of incompetent fraudster bureaucrats I always take it with a pinch of salt. While I am happy that the incumbent govt is consciously trying to bring CA deficit down, but my question to H.A was if I take out the mysterious $400 million and change out of the equation what would the CA deficit/surplus be? I did not get an answer to my question.

On the economic front some very good news are there including some stepping stone on FATF grey listing which was the main purpose of the meeting will share it once I land in US, have slept for a while and hopefully over with some jet lag.

 

[shah_123]

Who said exports are increasing?
This thread is about current account surplus and it's not easy to increase exports because pakistan has nothing to export except humans and agricultural products
A poor country like Pakistan can't afford expensive imports and orange train type projects

Soon your lazy CM (posti) Usman Buzdar will be having photo session in Orange train - -- your stupid PM was at inaugural of Hazara motorway yesterday --- kyun bari bari batein kartay ho?

At the end harvest season tomatoes become expensive due to decrease in supply
In past vegetables were imported from India to decease prices I think patwaris want Pakistan to import tomatoes from India

If your PM can allow import of sikhs from India, what's the issue in importing tomatoes temporarily --- This only shows how incompetent are the ones running the affairs of the country. -- How would they know the suffering of common people, they live in an imaginary world where tomato sells 17 rupees per kg.

 

[Affan-khan]

http://dunyanews.tv/en/Business/421375-Year-2017-The-year-tomatoes-cost-Pakistanis-Rs-300-per-kilo
tomato price rise to 300 in 2017. mian sb tenure .. any patwari logic?

 

[Jungibaaz]

This is excellent news. The first step to get out of a hole is to stop digging it deeper. Soon, the economic climb-out can begin.

This is definitely good news. But I’m also a bit sceptical as to what this might have cost us, let’s wait till we get a breakdown of what sort of imports have decreased, which exports have increased, and what’s happening with FDI, I’ve been getting worrying news on capital flight and outflows, and not much more than portfolio investments in. We need to know what this current account surplus cost us too, we know it cost us PKR devaluation, inflation and lower growth, but hopefully GFCF and inward investment wasn’t sacrificed too.

Anyway, I hope the economy adjusts to this and then we can get more sustainable growth going forward.

 

[bananarepublic]

Tomatoes pricew have risne due to import restrictions..
Plus Pakistan does not have a good planning for yearly tomato production and storage .. Well that is same for all vegetables .. Mandi mafia doesn't want cold storage and farmers are blackmailed to not grow in different seasons to artificially hikeup prices

 

[ejaz007]

Who said exports are increasing?
This thread is about current account surplus and it's not easy to increase exports because pakistan has nothing to export except humans and agricultural products
A poor country like Pakistan can't afford expensive imports and orange train type projects

You are mixing two different issues.

Imports are not necessarily luxury items but also imports related to projects going on in the country. Take for example E&P sector. It is almost entirely reliant on imports for its activities. The industry has almost come to a standstill. Major service companies related to E&P sector are in the process of either downsizing or planning on downsizing.

Every one has his/her own views on the orange train project. However one fact remains it is at least progressing while Peshawar rapid bus transit project has turned out to be nothing but waste of money. However depending on our political affiliation we conveniently ignore the project only criticizing other party's projects.

 

[Kabotar]

You should listen to that Bhagora Scumbag Nawaz's todi.

https://twitter.com/x/status/1196651146938650629

Soon your lazy CM (posti) Usman Buzdar will be having photo session in Orange train - -- your stupid PM was at inaugural of Hazara motorway yesterday --- kyun bari bari batein kartay ho?


If your PM can allow import of sikhs from India, what's the issue in importing tomatoes temporarily --- This only shows how incompetent are the ones running the affairs of the country. -- How would they know the suffering of common people, they live in an imaginary world where tomato sells 17 rupees per kg.

 

[B.K.N]

imports related to projects going on in the country.

We don't need any projects
Your orange type projects are bigger threat than India
These projects and imports are the reason Pakistan has to beg from IMF
Pakistan choro Punjab k 36 districts main sa aik district main metro and orange bana kar kehtay tha hamari performance dekho
People in their personal lives first try to increase their income then buy expensive things
But in politics they prefer to beg and take loan from other countries so that they can build stupid project in 1 city of Pakistan and can import unnessary things

 

[ejaz007]

We don't need any projects
Your orange type projects are bigger threat than India
These projects and imports are the reason Pakistan has to beg from IMF
Pakistan choro Punjab k 36 districts main sa aik district main metro and orange bana kar kehtay tha hamari performance dekho
People in their personal lives first try to increase their income then buy expensive things
But in politics they prefer to beg and take loan from other countries so that they can build stupid project in 1 city of Pakistan and can import unnessary things

Your wish was granted when IK was given the power to govern us.

No project in last 1.5 years.