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Top 5 news affecting the Pakistan stock market

Stocks closed at higher index thanks to the blue chip companies. Oil, banking and fertilizer sector were the leader. According to Arif Habib representative Ahsan Mehnti, “the investors are speculating around the pre-budget rally”.  Higher oil prices and the inclusion of MSCI in the fertilizer, oil and banking sector played a leading role in the record sale.

Top five news that will affect the Karachi stock exchange 100 index and Lahore Stock exchange as well:

Dawn leaks Dilemma come to end

Finally, the Nawaz government is able to overcome another political-military scandal “the dawn leaks “.Some analysts are suggesting, it was a distraction from the Panama Papers.

The ISPR director Maj Gen Asif Ghafoor announced; the army has withdrawn the controversial tweet. Remember, in that tweet the army rejected the prime minister recommendations on the report of the inquiry committee. Maj Gen was talking to a press conference and he said,” The issue had been settled”. The Interior minister Hassan Nisar also confirmed the complete consensus.

This news will settle the stock market. The Nawaz government is again able to win the trust level of the investors after an end of Dawn leaks.

Nestle; the cash- rich company

Nestle Pakistan one of the top listed company at Karachi stock exchange 100 index. The revenue for this year closed at Rs 30.42 bn.  With earning per share of Rs275.76 and market capital of 4469 bn, every investor wants to add this company to their investment portfolio. The share price continues to grow from PKR 9,350 to PKR 9,850 in just one month.

The financial highlights are commendable. For the Nestle investors, the good news is the company is increasing the price of a popular product, “Everyday Tea whitener”. As Ramzan is approaching it will be a good chance to earn profit due to increase in the product price.


How Fiscal Report Card affect the stock Market?

If you are investing in a market like Karachi stock exchange 100 index then it is important to read the fiscal report card. It will help you to understand whether the economy is stable or not.

Recently, Finance Minister of Pakistan Ishaq Dar has announced the fiscal deficit. The consolidated deficit stood at 3.7% with budgeted rate of 3.8% in 9MFY17. Last year the deficit was 4.5%, it is estimated that the deficit will cross the 4.5% mark.

The figures are not encouraging but what are the reasons? The sluggish performance of revenues from the FBR is the prime factor. Total tax revenue is only Rs2494 bn with an estimate of Rs3484 bn. Non- tax was only less than half of the estimated figures. However, the defense and the current expenditures were below the budgeted mark.

Investment opportunity in Ittefaq Iron Industries Limited

Through the book bidding process, IIIL is set to raise the RS 1.26 at the stock market.  The share price reached at Rs 30.2 with total issuance of 41.75 million shares.  This will help the company to inject the money in working capital.

While quoting the company prospectus, the Topline securities said” the excess funds will be used to repay short-term loans and renew the plant and machinery. IIIL stock will soon be available at Karachi stock exchange 100 index.   This will be the second company in 2017 to raise capital through stock exchange after the Roshan Packages.

News from the auto Industry

Pakistan auto industry is sustaining the stock market; giving investors the chance to grow with the business. The local automobile sales including the light commercial vehicles raised from 14% units as compare to last year. The car sales will touch the 270,000 units by end of fiscal year June 2017.

Toyota is one of the most important auto companies listed at Karachi stock exchange 100 index.  Its member company Toyota Boshoku Corporation is willing to invest in Pakistan. CEO of TBP said,” we will transfer technology and produce solutions to the local auto industry.It will help the industry to meet the global standards”.

About Emaad Qureshi