Sainthood 2.0
Elite Member
- Thread starter
- #16
Pakistan’s current account posts surplus of $9mn in November
This is the first surplus since June 2023
www.brecorder.com
General Economic Updates
- Thread starter Sainthood 2.0
- Start date
Kermit
Elite Member
US maintains top spot as Pakistan's leading export destination in Nov
UAE, Dubai claim fourth spot as a major export destination
In the dynamic landscape of Pakistan's international trade, the United States retained its position as the primary export destination for the nation in November FY24, according to data released by the State Bank of Pakistan.
Despite a 7.89% year-on-year decrease, Pakistan's exports to the United States amounted to $435.14 million in November FY24, showcasing the resilience of the economic ties between the two nations.
China emerged as the second-largest export destination for Pakistan, witnessing a notable increase of 36.3% year-on-year. The export figures rose from $199.06 million in the same period last year to $271.32 million, underscoring the strengthening trade bonds between the two countries.
The United Kingdom secured its position as the third-largest export market for Pakistan, contributing $172.94 million in export revenue. This reflected a positive growth of 7.15% compared to the previous year, demonstrating the resilience of trade relations between Pakistan and the U.K.
UAE-Dubai
U.A.E. Dubai claimed the fourth spot as a major export destination, with a substantial increase of 24.23% year-on-year. Pakistani exports to the region reached $134.02 million, highlighting the expanding economic engagement between the two nations.
While Pakistan experienced a 10.29% year-on-year drop in exports to Germany, amounting to $125.11 million, exports to Spain saw a positive uptick of 3.32% YoY, reaching $122.27 million. The Netherlands, however, witnessed a decline of 6.17% YoY, with export receipts standing at $111.93 million.
Month-on-month fluctuations
In November alone, total exports to the U.S.A. experienced a 10.31% month-on-month decrease, mirroring a similar trend in exports to China, which dropped by 14.91% month-on-month. On the flip side, exports to the U.K. saw a modest increase of 1.35% month-on-month.
Cumulatively, in the first five months of FY24, the United States maintained its position as the leading source of export receipts for Pakistan, contributing a substantial $2.3 billion. China followed closely, with a remarkable 39.44% increase in exports, totaling $1.22 billion. The United Kingdom ranked third, contributing exports valued at $862.4 million.
VCheng
THINK TANK: CONSULTANT
I just wish more people would appreciate Pakistan's biggest trading partner instead of vilifying it needlessly. Pakistan's economy needs all the help it can get. Please note that the current new darling of this crowd - China - has a large and growing trade deficit with Pakistan, with all its associated ills.
Dalit
Elite Member
The Pakistan Stock Exchange (PSX) witnessed accelerated selling pressure on Tuesday as the benchmark index shed more than 2,300 points.
According to the PSX website, the bourse stayed flat for 10 minutes after the opening bell. At 10:49am, the market began its gradual slide with the KSE-100 index plunging by 1186.19 points to sink to 64,018.48 from the previous close of 65,204.67.
The index closed at 62,833.03, further dipping by 2371.64 points, down 3.64pc from Monday’s close.
A day earlier, the benchmark of major shares lost 925.35 points after investors resorted to profit-taking. Negative contributions came from stocks in exploration and production, fertiliser and banking sectors.
Raza Jafri, head of equities at Intermarket Securities, said: “With the KSE-100 having arguably demonstrated an election rally in the last few months, earlier than the usual pattern, some pre-poll anxiety may be creeping in now.”
“Positions built on leverage may also be witnessing margin calls, adding to the pressure,” he added.
Margin calls are particularly common in volatile markets where prices may fall very quickly. If the equity in an investor’s account falls below the maintenance margin, a brokerage will issue a “margin call” which forces the investor to either liquidate their position in the stock or add more cash to the account.
Mohammed Sohail, chief executive of Topline Securities, echoed similiar sentiments of “over-bought and highly leveraged position forcing investors to trim their positions”.
He added that the margin call-led selling occurred during a time when “financing rates are usually higher due to year-end”.
Syed Fawad Basir, head of research at Al-Habib Capital Markets, highlighted that redemption in a few mutual funds had continued for a second day in a row — the funds had sold equities worth 2.8 million dollars previously — coupled “with margin calls on leveraged buying”.
“That said, a slightly longer-term view remains intact that correction has been due,” he said.
Basir observed that there was a brief recovery noted in the index possibly due to the news of fresh funds for government-owned power plants. However, that was left in the dust as bears continued their stampede.
Faran Rizvi, head of equity sales at JS Global, attributed the bearish momentum to “heightened geopolitical tensions” which have caused the global oil prices to surge.
A day earlier, global oil prices rose 3pc as mounting attacks by the Iran-aligned Yemeni Houthi militant group on ships in the Red Sea disrupted maritime trade. Oil major BP said it had temporarily paused all transits through the body of water.
“This poses a significant challenge for countries like Pakistan, which heavily rely on oil imports,” Rizvi said.
He further anticipated that the market would “undergo a corrective phase until the end of December, with a crucial support level at 64,500”. Rizvi advised investors to “exercise caution at these levels”.
According to the PSX website, the bourse stayed flat for 10 minutes after the opening bell. At 10:49am, the market began its gradual slide with the KSE-100 index plunging by 1186.19 points to sink to 64,018.48 from the previous close of 65,204.67.
The index closed at 62,833.03, further dipping by 2371.64 points, down 3.64pc from Monday’s close.
A day earlier, the benchmark of major shares lost 925.35 points after investors resorted to profit-taking. Negative contributions came from stocks in exploration and production, fertiliser and banking sectors.
Raza Jafri, head of equities at Intermarket Securities, said: “With the KSE-100 having arguably demonstrated an election rally in the last few months, earlier than the usual pattern, some pre-poll anxiety may be creeping in now.”
“Positions built on leverage may also be witnessing margin calls, adding to the pressure,” he added.
Margin calls are particularly common in volatile markets where prices may fall very quickly. If the equity in an investor’s account falls below the maintenance margin, a brokerage will issue a “margin call” which forces the investor to either liquidate their position in the stock or add more cash to the account.
Mohammed Sohail, chief executive of Topline Securities, echoed similiar sentiments of “over-bought and highly leveraged position forcing investors to trim their positions”.
He added that the margin call-led selling occurred during a time when “financing rates are usually higher due to year-end”.
Syed Fawad Basir, head of research at Al-Habib Capital Markets, highlighted that redemption in a few mutual funds had continued for a second day in a row — the funds had sold equities worth 2.8 million dollars previously — coupled “with margin calls on leveraged buying”.
“That said, a slightly longer-term view remains intact that correction has been due,” he said.
Basir observed that there was a brief recovery noted in the index possibly due to the news of fresh funds for government-owned power plants. However, that was left in the dust as bears continued their stampede.
Faran Rizvi, head of equity sales at JS Global, attributed the bearish momentum to “heightened geopolitical tensions” which have caused the global oil prices to surge.
A day earlier, global oil prices rose 3pc as mounting attacks by the Iran-aligned Yemeni Houthi militant group on ships in the Red Sea disrupted maritime trade. Oil major BP said it had temporarily paused all transits through the body of water.
“This poses a significant challenge for countries like Pakistan, which heavily rely on oil imports,” Rizvi said.
He further anticipated that the market would “undergo a corrective phase until the end of December, with a crucial support level at 64,500”. Rizvi advised investors to “exercise caution at these levels”.
Bears take control as shares at PSX plunge over 2,300 points
Analyst predicts market to undergo a corrective phase until the end of December.
www.dawn.com
Waj Sal
THINK TANK: CONSULTANT
Pump and dump, they make money both ways.
I think it was just the IMF stimulus, big players cashing in and taking profits.
Sainthood 2.0
Elite Member
- Thread starter
- #23
Only after elections can we tell what happens with psx in medium term 2,3 years
Too early for both gains and losses
Too early for both gains and losses
VCheng
THINK TANK: CONSULTANT
Anything related to Dar disappearing can only be a good thing.
Smoke
Registered Member
Not surprised, honestly, here are the largest factors I believe are causing this:
1. Political instability
Political stability greatly affects the stock market. When politics is stable, markets tend to be predictable and confident. However, uncertainty or instability, due to geopolitical tensions or sudden policy changes, causes market volatility. Investor confidence rises with political stability but declines when instability looms, leading to plunges in stock prices.
2. Company performance
Subpar financial performance such as disappointing earnings, revenue below projections, or guidance failing to meet expectations can erode investor faith in a company, resulting in a decline in its stock value. Import bans disrupt supply chains, raising costs for reliant industries and creating uncertainty. This uncertainty erodes investor confidence, triggering stock sell-offs due to fears of revenue loss. Sectors heavily dependent on imports face vulnerability, experiencing stock declines. These bans strain trade relations, fostering broader economic repercussions and market volatility, impacting businesses and stock prices.
3. Macroeconomic factors
Fluctuations in inflation rates, alterations in interest rates, or significant global economic occurrences have the potential to influence investor sentiment and result in widespread market downturns.
One of the largest shifts in stock exchange performance is usually from confidence-building measures, sadly in Pakistan's case this is tied to PML-N senior members, we saw an increase when Ishaq Dar came, and now Nawaz Sharif, however since there is little to no activity on their part, or any sort of economic rebuilding plan or any sort of stimulus-plan for the future, the momentum is lost, and the performance drops off the edge of a cliff.
We need consistency and so far every political leader is struggling to provide any sort of concrete plan to quell out the flames, I guess the reason being that it is so out of control, that any promises made carry a high risk of political suicide.
1. Political instability
Political stability greatly affects the stock market. When politics is stable, markets tend to be predictable and confident. However, uncertainty or instability, due to geopolitical tensions or sudden policy changes, causes market volatility. Investor confidence rises with political stability but declines when instability looms, leading to plunges in stock prices.
2. Company performance
Subpar financial performance such as disappointing earnings, revenue below projections, or guidance failing to meet expectations can erode investor faith in a company, resulting in a decline in its stock value. Import bans disrupt supply chains, raising costs for reliant industries and creating uncertainty. This uncertainty erodes investor confidence, triggering stock sell-offs due to fears of revenue loss. Sectors heavily dependent on imports face vulnerability, experiencing stock declines. These bans strain trade relations, fostering broader economic repercussions and market volatility, impacting businesses and stock prices.
3. Macroeconomic factors
Fluctuations in inflation rates, alterations in interest rates, or significant global economic occurrences have the potential to influence investor sentiment and result in widespread market downturns.
One of the largest shifts in stock exchange performance is usually from confidence-building measures, sadly in Pakistan's case this is tied to PML-N senior members, we saw an increase when Ishaq Dar came, and now Nawaz Sharif, however since there is little to no activity on their part, or any sort of economic rebuilding plan or any sort of stimulus-plan for the future, the momentum is lost, and the performance drops off the edge of a cliff.
We need consistency and so far every political leader is struggling to provide any sort of concrete plan to quell out the flames, I guess the reason being that it is so out of control, that any promises made carry a high risk of political suicide.
Last edited:
Dalit
Elite Member
The trend continues for a second day:
Bears continued their stampede at the trading floor of the Pakistan Stock Exchange (PSX) on Wednesday as the benchmark index shed over 1,000 points in intraday trading.
According to the PSX website, the KSE-100 index plunged by 1484.58 points at 1:40pm to sink to 61,348.45, down 2.21 per cent from the previous close of 62,833.03.
Bears continued their stampede at the trading floor of the Pakistan Stock Exchange (PSX) on Wednesday as the benchmark index shed over 1,000 points in intraday trading.
According to the PSX website, the KSE-100 index plunged by 1484.58 points at 1:40pm to sink to 61,348.45, down 2.21 per cent from the previous close of 62,833.03.
Shares at PSX lose nearly 400 points
Analysts attribute losses to high leverage costs and pre-election uncertainty.
www.dawn.com
Dalit
Elite Member
Bears dominate PSX as KSE-100 index loses nearly 1,000 points
The KSE-100 index fell by 988.47 points to close at 61,705.09, down 1.58 per cent from the previous close
www.dawn.com
Today the PSX lost another 1,000 points.
Developereo
Elite Member
It's better if you provide a summary. I don't know about other people, but I don't watch videos unless there is a compelling summary.
Dalit
Elite Member
Summary: Don't bother with Pakistan.
Users who are viewing this thread
Pakistan Defence Latest
Country Watch Latest
-
Iran - Israel/US War: Israel-US declare war on Iran, Iran responds (922 Viewers)
- Latest: BananaRepublic
-
-
-
-
Latest Posts
-
-
Iran - Israel/US War: Israel-US declare war on Iran, Iran responds (922 Viewers)
- Latest: BananaRepublic
-
-
-