Business
PSX extends losing streak as index plunges 2,062 points | 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
The Pakistan Stock Exchange (PSX) witnessed a sharp downturn on Tuesday as early gains were wiped out by heavy profit-taking and weak investor sentiment, pushing the benchmark index deep into the red.
After opening on a positive note, the KSE-100 index climbed to an intra-day high of 163,380.67 points. However, momentum quickly reversed in the second half as investors booked profits from recent rallies. The index hit a low of 159,805.35 points before closing at 160,101.03, down 2,062.78 points or 1.27% from Monday’s close of 162,163.81.
Tuesday’s slump marked the fifth consecutive session of losses, underscoring persistent investor unease. The benchmark briefly dipped below the 160,000-point mark amid sustained selling pressure and a lack of positive triggers.
Read: Border clashes rattle stocks and PSX suffers major sell-off
Market participants attributed the downturn to fading confidence, macroeconomic uncertainty, and caution ahead of corporate earnings, following recent policy announcements.
Arif Habib Limited (AHL) noted that the bearish spell persisted with the fifth straight down close and an intra-day breach of the 160,000 level. Only 19 scrips gained while 79 declined, with Lucky Cement (+1.67%), Pakistan Services (+1.69%), and Service Industries (+1.69%) providing the most support.
On the flip side, Hub Power (-2.18%), Meezan Bank (-1.82%), and Habib Bank (-1.9%) were the biggest drags on the index.
In corporate results, Lucky Cement reported its highest-ever quarterly consolidated profit after tax (PAT) of Rs21.9 billion (+23% YoY), translating into an EPS of Rs15.01 for 1QFY26.
Read More: PSX slips 0.3% as selling offsets early gains
Indus Motor Company (+0.92%) also posted a record PAT of Rs6.72 billion (EPS: Rs85.49, +32% YoY) along with a record quarterly dividend of Rs51 per share. Pakistan State Oil (+0.65%) announced 1QFY26 EPS of Rs20.0, up 136% YoY.
AHL cautioned that Tuesday’s declines wiped out all gains made since mid-October, warning that “after a bounce, the October lows will likely come under threat.”
Overall market participation improved, with 1.01 billion shares traded, up from 1.0 billion on Monday. Traded value stood at Rs36.94 billion.
Out of 476 active scrips, 113 advanced, 324 declined, and 39 remained unchanged. K-Electric led the volumes chart with 94.6 million shares, losing Rs0.54 to close at Rs5.27.
Business
Aadhaar Card Update: Is Aadhaar A Proof Of Date Of Birth Or Citizenship? Govt Issues Clarification
New Delhi: The Ministry of Communications has issued a latest circular on clarification on the Properties and Usage of Aadhaar by Unique Identification Authority of India (UIDAI).
The three-point clarification was issues regarding the properties and permissible usage of the Aadhaar number and related documents.
UIDAI said that an Aadhaar number may be used for establishing the identity of the Aadhaar number holder subject to authentication or offline verification.
Further, Aadhaar number or the authentication thereof, is not a proof of citizenship or domicile in respect of Aadhaar number holder.
UIDAI also added that Aadhaar number is not a proof of date of birth and hence, must not be used for establishing the date of birth of the Aadhaar number holder conclusively.
Business
Teachers to be balloted on industrial action over class contact time
Members of the NASUWT union are set to be balloted on industrial action over class contact time.
The union accused the Scottish Government of failing to meet the SNP manifesto commitment ahead of the 2021 election of reducing contact time by one-and-a-half hours per week.
Announcing the move, NASUWT national official for Scotland Mike Corbett said teachers are “arguably worse off in terms of workload” than before the last election.
“The commitment on class contact time was a recognition by the Scottish Government that additional time away from the classroom was necessary to give teachers sufficient time and space to plan, prepare and assess pupils’ work in order to help students achieve their best and raise attainment.
“Since 2024 we’ve had agreements to work ‘at pace’ and the establishment of working groups by the Scottish Government and Cosla to make meaningful progress on class contact time reduction.
“But the reality is that teachers today are arguably worse off in terms of their workloads and working hours than they were in 2021 when this commitment was first made.
“A reduction in class contact time is as needed now, if not more so, than in 2021.
“It is regrettable that we have been forced to declare a trade dispute and move to a ballot in order to try to force the Government to give teachers the working conditions it itself acknowledges they require to do the job effectively.”
The union’s general secretary Matt Wrack said it had “exhausted all avenues” to reduce contact time, adding: “Where ministers and employers continue to fail our teachers, we will stand up for their right to working conditions which would enable them to deliver the highest quality of learning for our children and young people.”
A Scottish Government spokesperson said: “Ministers have been clear that reducing class contact will help support the time and space necessary for teachers, to allow them to drive improvement and reform in our schools and improve outcomes for their pupils.
“We are committed to working with teaching unions and Cosla to agree our approach to delivering a reduction in class contact time at pace.
“That is why we are providing local authorities with increased funding of £186.5 million to restore teacher numbers – this additional funding was agreed to by local government on the understanding that they make ‘meaningful progress’ with reducing class contact.
“Ministers respect union members’ right to withdraw their labour, but are disappointed that the NASUWT has taken this action while these constructive discussions are ongoing.”
Business
Reeves could face £20bn Budget hole as UK productivity downgraded
The government is facing a bigger-than-expected hole in the public finances as it prepares for next month’s Budget.
A downgrade to the UK’s productivity performance from the government’s official forecaster could lead to the chancellor facing a £20bn gap in meeting her tax and spending rules, the BBC understands.
Rachel Reeves has confirmed both tax rises and spending cuts are options in next month’s Budget.
The Treasury declined to comment on “speculation” ahead of the Office for Budget Responsibility’s (OBR) final forecast, which will be published on 26 November alongside the Budget.
It comes as the chancellor told an audience in Saudi Arabia that Brexit is partly to blame for high inflation in the UK.
Persistent higher prices have been a dampener on UK economic growth, because the Bank of England has kept interest rates higher to control inflation, and that has made Reeves’ job harder to balance tax and spending within her fiscal rules.
“Inflation is too high in countries around the world including in the UK, and one of the reasons for that is that there’s too much cost associated with trade with our nearest neighbours and trading partners,” Reeves said as she argued that closer economic ties with the EU could ease the inflation burden and boost economic growth.
“Businesses, especially small businesses, who face increasing red tape since we left the European Union, for workers, who are now locked out of the jobs market in Europe, there are obviously huge benefits from rebuilding some of those relations.”
The OBR will deliver its final draft forecast for Reeves’s Budget, including productivity – a measure of the output of the economy per hour worked – to the Treasury on Friday.
The forecaster had previously assumed a partial bounce back in productivity growth, but this has never materialised.
This productivity assumption is essential to long-term growth prospects and so, under the current system, even a small change can alter how much money a Budget needs to raise by several billion pounds.
The OBR is understood to have downgraded forecast for productivity by 0.3 percentage points – a figure first reported by the Financial Times – bringing its assumption closer to that of the Bank of England.
The Institute for Fiscal Studies think-tank has calculated that for every 0.1 percentage point downgrade in the productivity forecast, government borrowing would increase by £7bn in 2029-30 – meaning a 0.3 point cut could add £21bn to the Budget hole.
The changes open up an initial gap of some £20bn, rather than the £10-£14bn widely anticipated.
Such a hole could be plugged by hiking taxes, reducing public spending or increasing government borrowing.
Reeves has set out two main Budget rules, which she has described as “non-negotiable”. These are:
- Not to borrow to fund day-to-day public spending by the end of this parliament
- To get government debt falling as a share of national income by the end of this parliament
Reeves admitted on Monday to business leaders in Saudi Arabia that the OBR was “likely to downgrade productivity” which has been “very poor since the financial crisis and Brexit”.
The OBR is expected to explain the decision in detail, but some ministers have privately pointed out that if it had done this earlier, different choices could have been made at this summer’s Spending Review.
There are many other moving parts in the Budget which may bring better news for the chancellor, such as the decline in the interest rates paid on government debt.
However, with other pressures such as the U-turns on welfare spending and a desire to rebuild a bigger buffer in the public finances, speculation is pointing towards significant tax rises, including some possible breaches of manifesto commitments such as changes to income tax.
The Treasury will inform the OBR of its first draft Budget measures next week.
On Tuesday, the government announced it had agreed a series of trade and investment deals with Saudi Arabia, following Reeves’s visit to the Gulf.
This included up to £5bn in support from UK Export Finance for projects in Saudi Arabia which the government said would “unlock” contracts for British firms.
It also announced deals including a £37m investment from Saudi cybersecurity firm Cipher to set up its European office in London, and a £75m investment from Saudi investors and bankers into British digital bank Vemi.
The chancellor also met ministerial counterparts from Qatar and Kuwait for talks over a wider potential trade deal between the UK and the Gulf Cooperation Council.
-
Fashion1 week agoChinese woman charged over gold theft at Paris Natural History Museum
-
Tech1 week agoThis Smart Warming Mug Is Marked Down by $60
-
Entertainment1 week agoJohn Grisham unveils his first-ever mystery, “The Widow”
-
Fashion1 week agoeBay UK seller fee removal sends revenue down but profits rise
-
Tech1 week agoEaster Island’s Moai Statues May Have Walked to Where They Now Stand
-
Tech1 week agoOpenAI has slipped shopping into ChatGPT users’ chats—here’s why that matters
-
Tech1 week agoAI model could boost robot intelligence via object recognition
-
Fashion1 week agoThe North Face and Cecilie Bahnsen launch second collaboration
