Business
Phases of PSX boom | The Express Tribune
A stock broker reacts while monitoring the market on the electronic board displaying share prices during trading session at the Pakistan Stock Exchange, in Karachi on July 3, 2023. Photo: Reuters/ File
LAHORE:
The stock market is booming as the Pakistan Stock Exchange (PSX) index is hovering around the 185,000 mark. The index has witnessed a growth of around 67% in the last one year and has achieved a growth of around 2.5% in the last one month.
Market and financial analysts are of the opinion that price/earnings (P/E) ratio is around 11 and there is still room for further improvement. Moreover, they think that stock prices are still cheap as per international standards. The duration of current boom is extended and many companies have already outperformed the index.
Mathematically speaking, stock prices reflect expected profitability. In the early phase of the boom, there is a consensus among bulls and bears that stock prices are undervalued. This consensus of opinion drives up stock prices a great deal.
During the early phase, expected profitability is greater than stock prices which, in turn, increases the net worth of listed business firms. The increase in net worth incentivises a business firm to increase real investment. Here real investment means investment in machines, tools, factory buildings, fixtures and equipment.
In this phase, banks also lend to business firms to meet their working capital and inventory requirements. The real investment increases the productive capacity of the economy. Hence, early phase of the boom is good for real investment.
In the later part of the boom, there is a division among bulls and bears. Bulls intend to take the market up while bears want to take the market down as they consider stock prices are quite high. This division of opinion either takes the market up when bulls dominate or takes it slightly down as and when bears rule.
However, bulls keep on dominating the market and hence bull-run continues. During this phase, stock prices are considered overvalued.
Keeping in view the overvaluation of stocks, many individuals sell their stocks as they anticipate a quick downturn. We may categorise these individuals as bears. Bears keep on increasing with the passage of time.
However, bulls still continue to buy stocks. Since they are short of cash, they start to borrow from banks. This borrowing increases the leverage position in the market. Since banks are willing to lend to bulls, bulls keep on borrowing by pledging their stocks. Thus, these stocks act as collateral.
As stock prices increase, collateral becomes overvalued. This overvalued collateral maintains funding from banks. During this phase, banks change their composition of assets as they buy bonds to supply deposits. In addition, banks keep on funding bulls so long as stock prices increase.
In simple words, boom continues through over-borrowing and stock prices keep on increasing. The current reduction in the Cash Reserve Requirement (CRR) for banks from 5% to 4% would further ease the liquidity position of banks. The purpose is to sustain the current boom.
Stock market analysts and financial commentators closely look at the rate of inflation. The average rate of inflation in FY 2026 is around 6%, which meets the target of the State Bank of Pakistan (SBP). If inflation rate remains in the target range of the SBP, boom will sustain as per their opinion.
These analysts are also looking at high international commodity prices. The international prices of coal, gas and oil is gradually increasing, which have become a cause of concern for them. In short, stock market boom is still on. Any random event may affect the market. Last but not the least, waning profitability of business firms and high international crude oil price of $75 per barrel and above will create jitters in the market. The readers should decide whether to jump in the market or not.
The writer is an independent economist and authored a book “Pakistan’s Structural Economic Problems in the era of Financial Globalisation”
Business
Top stocks to buy: Stock recommendations for the trading week starting February 9, 2026 – check list – The Times of India
Stock market recommendations: Motilal Oswal Financial Services Ltd recommends the top stock picks for the week starting February 9, 2026. These are: SAIL, and Ventive Hospitality. Here’s a detailed analysis:
SAILSAIL delivered an in-line operating performance in 3QFY26, with healthy steel volumes offsetting weak realizations, underscoring improving execution and cost discipline. Sales volumes rose 16% YoY to 5.15 million tonnes, aided by aggressive inventory liquidation and stronger market outreach, while inventory levels declined to 2.4 million tonnes, releasing working capital and strengthening the balance sheet. Although average realizations softened, profitability was supported by scale benefits, stable coking coal costs during the quarter, and disciplined operating controls. Management commentary points to a more constructive near-term outlook, with January price hikes expected to fully reflect in February realizations, further inventory reduction planned in 4Q, and operations normalized across key plants. Medium-term visibility is reinforced by sustained volume targets, ongoing deleveraging, and a structured capex program focused on modernization and efficiency gains, which should structurally improve cost competitiveness over the cycle.Ventive HospitalityVentive Hospitality (VENTIVE) operates marquee luxury assets in the hospitality (77%) and annuity (23%) segments. It is expanding its presence beyond Pune to high-growth cities like Bengaluru & Navi Mumbai, reducing concentration risk. Alongside Soho House partnership (membership-based revenue), these expansions support stronger occupancy, revenue and medium-term earnings visibility. In its hospitality segment, international operations account for 54% of segment revenue, and is expected to deliver 21%/27% revenue/EBITDA CAGR over FY25-28, supported by new developments, rising luxury demand, and improved connectivity. Over FY25-28, we expect VENTIVE to deliver a 21% CAGR in both revenue and EBITDA, driven by rapid multi-city expansion, diversification into membership-led hospitality via Soho House and strong overseas performance led by high-ADR Maldives assets and expansion into Sri Lanka. Adj. PAT is likely to double, supported by operating leverage, lower interest costs and reduced tax burden.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
Business
Energy boss says China’s tech marks ‘golden opportunity’ for UK
The head of Britain’s largest energy supplier has warned that the UK risks being “left behind” if it fails to collaborate with China on renewable technology, suggesting that importing Chinese wind farm innovations could create thousands of jobs.
Greg Jackson, founder and chief executive of Octopus Energy, recently accompanied Sir Keir Starmer on a UK delegation to China. He emphasised China’s significant advancements in technology and renewables, which he believes could provide Britain with crucial energy security.
This push for closer ties follows Octopus Energy’s recent joint venture with Chinese firm PCG Power, marking its first expansion into China.
The agreement will enable Octopus to trade renewable energy within the world’s largest clean energy market.
Furthermore, Octopus has previously indicated its desire to deploy wind turbines from leading Chinese manufacturers across its UK projects, utilising the country’s renewable technology to enhance Britain’s capabilities.
However, these potential collaborations are set against a backdrop of ongoing national security concerns regarding China, following a period of strained relations between the two nations.
Mr Jackson told the Press Association: “However you feel about China, it’s the second-largest economy in the world.
“In many areas it’s setting the global pace because of its investment in research and development, and technology.
“There are many people concerned about China’s motives or the way in which it’s run, but … if you don’t look at how to work with them, then you’ll get left behind.”
He added that working with China and gaining access to its technology was a “golden opportunity” that has the potential to bring down energy bills, create jobs and help boost the UK economy.
He told PA: “We need to be prepared to defend our own sovereignty and ensure our own security while working and trading with countries who can make people in Britain better off.
“There’s this obsession with whether or not we’re helping their economy, but the reality is we need to help our own economy.”
In September last year, Octopus struck a deal to co-operate on wind farm projects with Ming Yang Smart Energy Group in China, which could pave the way for UK firms to bring Chinese turbine machinery into Britain for the first time.
Mr Jackson said the firm is hoping to start bringing the turbine technology over in the next couple of years, which is said to be around 30 per cent cheaper than from Europe.
“We would hope to create thousands of jobs here to produce some of the wind turbines that the UK is planning on building,” he said.
He insisted security would be the firm’s “number one priority” in rolling out the technology, but that the UK needs to take action to reduce its reliance on imported gas and bring the cost of bills down.
“We should work intelligently and carefully with the appropriate security frameworks,” he said.
“They’re opening up to us in an appropriate way and we need to think about how we’ll work with them here.”
Octopus, which has 7.6 million customers in the UK, overtook British Gas to become the UK’s largest energy supplier earlier this year, with a market share of 24 per cent.
It also has an AI-powered platform, called Kraken Technologies, which is used by other global energy retailers to improve customer service and billing and is valued at around £6.4 billion.
The Government last month said it was investing £25 million into Kraken through the British Business Bank (BBB) ahead of the division being spun out in the next few months.
Business
Superdrug to open dozens of new stores in UK expansion
High street health and beauty chain Superdrug has revealed plans to open 30 new stores this year, reinforcing its commitment to the UK retail sector.
The retailer confirmed this expansion of its store footprint will create around 600 jobs across the UK.
The Croydon-based business, founded in 1964, currently operates more than 780 shops across the UK and Ireland. Bosses at the chain stated the plans for further openings come on the back of “strong customer demand” in its stores.
Superdrug added that it will continue to invest particularly in “large-format destination stores and retail park locations”.
It confirmed that new sites include Dundee Gallagher Retail Park, Kilmarnock Retail Park, East Kilbride, Strathkelvin Retail Park and Linwood Phoenix Retail Park in Scotland; White Rose Leeds, Crawley, Waterlooville Retail Park, Newport Retail Park, Isle of Wight in England; and Cwmbran Retail Park in Wales.
Shoppers will be able to buy new beauty products and treatments such as ear piercing, manicures and eyebrow threading at Superdrug Beauty Studios, the group added.
The retail chain also said it plans to complete 60 store refits during the year as it commits “significant investment” across its estate of site.
Clare Jennings, Superdrug’s property director, said: “Superdrug continues to see strong demand for physical, experience-led retail, and our 2026 store opening programme is a clear vote of confidence in UK bricks and mortar retail.
“By opening 30 stores, we’re not just increasing our footprint, we’re creating destinations that bring together beauty, healthcare and affordable treatments under one roof.
“Our customers want more than convenience, they want expertise, products and services they can trust, delivered in welcoming spaces within their local communities.
“This investment allows us to bring bigger, better Superdrug stores to more locations across the UK, unlocking more access to healthcare, beauty products and treatments, while creating hundreds of new jobs and long-term career opportunities for our colleagues.”
The news comes as high-street pharmacy giants Boots and Superdrug have been accused of misleading customers with “dodgy deals” after an investigation into loyalty pricing at their stores.
Consumer champion Which? compared prices across the two businesses during a six-month period in 2025, finding hundreds of cases where loyalty deals indicated a greater saving for members than in reality.
Which? says it has referred both Boots and Superdrug to the Competition and Markets Authority (CMA), alleging that the companies have gone against the watchdog’s guidance on loyalty pricing promotions.
One of the examples given by Which? is a Simple skincare bundle that was priced at £4.98 for loyalty members and £9.98 for other customers. However, immediately before that, the bundle was priced at £4.80 for everyone (and marked as “reduced” from £9.98), and afterwards it was £4.49 for everyone (also “reduced” from £9.98).
Superdrug argued that the prices highlighted by Which? only made up a small proportion of its thousands of loyalty price promotions.
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