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Inflation, fiscal strains weigh on PSX | The Express Tribune

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Inflation, fiscal strains weigh on PSX | The Express Tribune


Shares of 340 companies were traded. At the end of the day, 93 stocks closed higher, 233 declined and 14 remained unchanged. PHOTO: FILE


KARACHI:

The Pakistan Stock Exchange (PSX) witnessed a week of profit-taking and consolidation as investors remained cautious amid rising inflation, widening trade deficit and fiscal shortfalls. The benchmark KSE-100 index closed at 159,593, down 2,039 points, or 1.3% week-on-week (WoW), after recovering some ground on Friday.

On a day-on-day basis, following Friday’s strong rally, the PSX continued its upward trajectory on Monday as the KSE-100 index gained 1,172 points (+0.72%) to close at 162,803.

The market saw a consolidation phase on Tuesday, when the index fluctuated throughout the session, ultimately closing at 161,282, down 1,522 points, or 0.93%.

On Wednesday, the PSX endured a lacklustre session, slipping 1,704 points, or 1.06%, and settling at 159,578. The bourse extended its losing streak on Thursday and dropped another 481 points (-0.3%) to close at 159,097.

After three consecutive bearish sessions, the PSX finally saw some respite on Friday as the KSE-100 ended trading at 159,593 (+496 points, or 0.31%).

Arif Habib Limited (AHL) weekly review noted that the benchmark KSE-100 index continued on a downward trajectory at the start of the week, but bounced back on Friday, recovering some lost ground. The bearish trend was on the back of profit-taking and market consolidation. Consequently, the index closed the week at 159,593, marking a decline of 2,039 points (-1.3% WoW).

Among economic news, AHL mentioned, the Consumer Price Index (CPI) for Oct’25 came in at 6.2% year-on-year (YoY) – the highest since Oct’24 – compared to 5.6% in Sept’25.

In the Pakistan Investment Bond (PIB) auction, the government raised Rs785.2 billion against the target of Rs400 billion, with bids totalling Rs1.44 trillion. Cut-off yields rose 14-15 basis points for two to five-year papers, stayed flat for 10 years and fell nine basis points for 15-year bonds, which saw a large allocation of Rs340 billion.

In Oct’25, total cement dispatches increased 7.3% to 4.8 million tons, up from 4.4 million tons in Oct’24, driven by a surge in domestic demand. During 4MFY26, cement dispatches reached 17.3 million tons, depicting a 16.1% YoY growth from 14.9 million tons in 4MFY25.

Urea sales declined 2%, reaching 351k tons in Oct’25, driven by weak farm economics and seasonal impact, while di-ammonium phosphate (DAP) sales shrank 55% YoY to 140k tons due to lower imports and offtake by local producers.

Sales of oil marketing companies (OMCs), excluding furnace oil, rose 2% YoY to 1.47 million tons in October, fuelled by a 4% increase in high-speed diesel demand amid Rabi sowing and curbed smuggling, while motor spirit volumes dipped 2% YoY on higher prices. Cumulatively, 4MFY26 sales grew 8.3% YoY to 5.3 million tons, AHL added.

Syed Danyal Hussain of JS Global noted that stock market activity remained under pressure during the week, with the KSE-100 index closing at 159,593 points (down 1.3% WoW) as sentiment remained subdued due to unstable geopolitical dynamics.

On the economic front, the CPI for Oct’25 was recorded at 6.2%, which remained above market expectations, primarily due to flood-related supply interruptions and border closures with Afghanistan, lifting average inflation for 4MFY26 to 4.73%.

Meanwhile, the trade deficit widened 56% YoY in October to $3.2 billion, pushing the 4MFY26 deficit to $12.6 billion as imports rose to $6.1 billion, the highest monthly level since March 2022, while exports declined 4% YoY, Hussain said.

Conversely, remittances improved to $3.4 billion in Oct’25 (+12% YoY). The power-sector circular debt registered an increase of Rs79 billion in 1QFY26, reaching Rs1.69 trillion. On the fiscal side, the Federal Board of Revenue faced another monthly shortfall of Rs76 billion in Oct’25, which took the cumulative gap to Rs274 billion in 4MFY26, with total collections reaching Rs3.84 trillion, he added.



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US supply chain strain: FAA flight cuts, cargo jet grounding hit US logistics; FedEx and UPS brace for holiday rush – The Times of India

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US supply chain strain: FAA flight cuts, cargo jet grounding hit US logistics; FedEx and UPS brace for holiday rush – The Times of India


The US air cargo industry is bracing for fresh turbulence as the Federal Aviation Administration’s (FAA) 10% reduction in flight capacity across 40 major airports collides with the grounding of UPS and FedEx’s McDonnell Douglas MD-11 fleets, deepening pressure on supply chains ahead of the crucial Thanksgiving and holiday shipping season.The FAA ordered airlines to cut domestic flight operations by 10% between 6 a.m. and 10 p.m. local time, citing air traffic controller shortages caused by the prolonged government shutdown, AP reported. The decision affects key hubs with major parcel distribution centres — including FedEx’s Memphis and Indianapolis bases and UPS’ Worldport hub in Louisville, Kentucky, where a deadly cargo plane crash this week killed 14 people, including three crew members.Both companies announced they were grounding their MD-11 aircraft “out of an abundance of caution”, removing a significant chunk of capacity — roughly 9% of UPS’ fleet and 4% of FedEx’s. The double blow has prompted concerns about rising strain on logistics networks just weeks before the peak shopping period.“This is such a stressful time for both companies,” said Patrick Penfield, supply-chain management professor at Syracuse University, quoted AP. “You’ve got a surge in demand, and then you just lost some of your capacity. They’re already scrambling, and now they’re going to scramble even more.” Penfield warned that shoppers could face delivery delays of up to two days in mid-December, urging consumers to order early.While most air freight is international — and thus largely unaffected by the FAA directive — the cutback in domestic passenger flights, which carry about 35% of global trade by value, is expected to cause short-term constraints.FedEx said it had made “operational modifications” to keep shipments moving “safely and swiftly,” while UPS assured customers that its network remains “safe, resilient and reliable.” Both carriers said most of their flights operate outside the restricted hours, reducing immediate impact on overnight deliveries.Still, industry leaders warned of ripple effects. Mike Short, president of global freight forwarder C.H. Robinson, said the reduction in commercial flights could tighten domestic air capacity and extend transit times. “Trucks and expedited ground networks can absorb some displaced volume, but not without challenges,” he said.Smaller high-value goods such as smartphones, chips and consoles rely heavily on air transport, and experts say those shipments may face mild disruption. However, ground transport networks are expected to offset part of the capacity loss for domestic parcels.“Air cargo depends on every part of the aviation ecosystem working in sync,” said Brandon Fried, executive director of the Airforwarders Association. “When capacity is cut and federal employees are stretched thin, the supply chain slows — and the longer this shutdown continues, the worse it will get.”Despite the turbulence, logistics experts say the sector has become more resilient and adaptive after years of pandemic-related shocks. “Airlines have become very good at consolidating loads and rerouting via secondary hubs,” said Eytan Buchman, chief marketing officer of Freightos. “In the near term, space may feel tighter, but this isn’t a one-to-one loss in capacity.”For now, industry watchers expect limited delays — but warn that if the shutdown drags into December, America’s holiday deliveries could face their biggest stress test in years.





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Chip relief: China allows exports of Nexperia chips for civilian use; move to ease global auto supply strain – The Times of India

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Chip relief: China allows exports of Nexperia chips for civilian use; move to ease global auto supply strain – The Times of India


China has granted exemptions to export controls on Nexperia chips for civilian applications, its commerce ministry said on Sunday, signalling a potential easing of pressure on the global auto industry hit by supply shortages following earlier curbs, Reuters reported.The announcement marks Beijing’s strongest indication yet that it will relax restrictions imposed after the Dutch government took control of Nexperia, a key supplier of basic chips used in automotive electrical systems.Nexperia, based in the Netherlands but owned by China’s Wingtech Technology, had been at the centre of a trade standoff that disrupted global chip supplies. The Chinese ministry did not define what constitutes “civilian use,” but the move comes after German and Japanese companies said deliveries of Nexperia’s China-made chips had resumed.Despite the exemptions, China–Netherlands relations, and by extension ties with the European Union, are expected to remain strained until the dispute over Nexperia’s ownership and operations is resolved.The Dutch government seized control of the company on September 30, citing concerns that Wingtech’s plans to shift production to China posed a threat to European economic security.In response, China halted exports of Nexperia’s finished chips, which are primarily packaged in China, but last week said it would start accepting applications for export exemptions following a meeting between US President Donald Trump and Chinese President Xi Jinping on October 30.China’s commerce ministry reiterated that it aims to protect global chip supply chains, while accusing the Netherlands of failing to act to resolve the standoff.In its statement Sunday, the ministry urged the European Union to “intensify efforts” to persuade the Netherlands to reverse its decision.“China welcomes the EU to continue leveraging its influence to urge the Netherlands to promptly rectify its erroneous actions,” the ministry said.





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Shutdown chaos: US air travel could ‘slow to a trickle’, says transport secretary; warns of massive holiday disruption – The Times of India

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Shutdown chaos: US air travel could ‘slow to a trickle’, says transport secretary; warns of massive holiday disruption – The Times of India


Air travel across the United States could soon “slow to a trickle”, Transportation Secretary Sean Duffy warned on Sunday, as the prolonged government shutdown continues to paralyse operations and disrupt flight schedules nationwide, AFP reported.Thousands of flights were cancelled or delayed through the weekend as the Trump administration ordered capacity cuts at 40 airports to ease pressure on air traffic controllers, many of whom have been working without pay since federal funding lapsed on October 1.

US Aviation Explodes: 1400+ Flights GROUNDED, Americans TRAPPED At Airports Amid Shutdown Crisis

“Air travel is going to slow to a trickle as everyone wants to travel to see their families,” Duffy told Fox News Sunday, cautioning that the impact will worsen as the Thanksgiving holiday season approaches.The shutdown — now stretching into its sixth week — has forced federal agencies to a near standstill, with many government employees, including airport security and traffic control staff, either furloughed or working unpaid while the political standoff between Republicans and Democrats drags on.“We’re going to see very few air traffic controllers coming to work, which means only a handful of flights will take off and land,” Duffy said. “You’re going to have massive disruption and a lot of angry Americans.”Appearing later on CNN’s “State of the Union”, Duffy warned that the situation could deteriorate further if the budget impasse is not resolved soon.“It’s only going to get worse,” he said. “Many people are not going to be able to get on an airplane, because there are not going to be that many flights if this thing doesn’t open back up.”The continued shutdown has raised concerns among airlines and unions about passenger safety, scheduling bottlenecks, and economic losses, with analysts estimating billions of dollars in lost productivity across the aviation and tourism sectors.The Federal Aviation Administration (FAA) has said it is prioritising essential services, but widespread absenteeism among staff has already led to longer wait times, route delays, and reduced capacity.





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