PSE rally continues for the 12th consecutive week. The KSE-100 index tossing to the new peak with a gain of 271.47 points and close at an all –time high of 47,210.06. The Bank of Punjab, Power Cement Ltd., and the Faysal bank were the leaders of the week. The foreign and companies’ investment portfolio surge to the $8.44M and $7.05M respectively.
What will be the key factors next week?
The banking sector in Pakistan has continued to show power packed performance in the stock market. Currently, Habib bank is the stock leader with a share price of PKR 274.02. From the start of the year, HBL shares increased to 36.32%. The analysts are advising the investors to hold their positions in HBL.
Recently, HBL has opened a branch in Urumqi, the capital of Xingjian. The bank in China will play a vital role in the China-Pakistan Economic Corridor (CPEC). This branch will provide the much needed financial services to the Chinese companies which are a part of the CPEC. The increasing dimensions of the HBL are the reason behind their success in the stock market.
Textile Export Grew by 9.71%
Pakistan export sector continues to please their investors. According to the Pakistan Bureau of Statistics, textile export grew by 9.71% to $1.05 billion in November. Jawed Bilwani, who is the Apparel Forum chairman, told the reason behind the growth. Pakistan is exporting textile products to the 28-nation European Union under the GSP-Plus scheme.
Manufacturers Oppose Duty-Free Cement Import
There is speculation in the market that some people are demanding zero duty on the import of the cement. This decision can be devastating for the manufacturers as it will affect the investors as well as the new entrants. The cement export declined to the lowest levels in November. Moreover, the cement smuggling from Iran is causing substantial loss to the local manufacturers.
Good news for the Fauji Cement investors, the company will be installing a power plant in collaboration with the Sinoma Energy Conservation Company. The project will enable the cement producer to produce 80% electricity requirements from captive sources. This step will reduce the cost of production and the company will be able to deliver more profit to its shareholders.
PSX 40 Stake Sold to the Chinese Consortium
India is concerned about the Russian-Pak collaboration resulting from CPEC. Adding to the worries of India, more foreign investment is coming to Pakistan. Pakistani Stock Exchange (PSE) sold 40% stakes to the Chinese consortium. The total value of the transaction is $85 million with China Financial Future Exchange Company being the lead bidder. The lead bidder will take 30% of the strategic stock, Pak-China Investment Company and HBL will pick 5% each.
This deal will increase the foreign reserves as well as the confidence of the other investors.
Oil Prices Will Increase in the Global Market
Global producers are cutting the production of oil and the oil prices are beginning to soar in the global market. The prices shot up by 4% and reached to the highest level since 2015.The change in the international market will affect the oil prices in the Pakistan as well. So, the new year may be a good news for the oil investors.