कारोबार

KARACHI: Buying activity returned to the Pakistan Stock Exchange (PSX) on Monday, with the benchmark KSE-100 Index gaining more than 400 points during the opening phase of trading as investors showed renewed interest in major sectors. At around 9:50am, the benchmark index was trading at 181,880.56 points, recording an increase of 450.54 points, or 0.25%, compared with the previous close. The positive momentum was supported by buying across several key sectors, including automobile assemblers, cement companies, commercial banks, oil and gas exploration firms, oil marketing companies (OMCs) and refineries. Several heavyweight stocks also contributed to the upward movement. HUBCO, ARL, OGDC, POL, PPL, PSO, HBL, MCB, MEBL and NBP were among the prominent index constituents trading in positive territory during the early session. The latest gains came after the stock market delivered a strong performance last week, when easing geopolitical concerns helped improve investor confidence. Developments surrounding diplomatic efforts between Iran and Oman regarding shipping activity through the strategically important Strait of Hormuz, coupled with expectations of a possible wider understanding between the United States and Iran, provided some relief to financial markets. The KSE-100 Index had climbed 5,335.89 points, or around 3%, during the previous week, closing at 181,430.02 points. Global markets provide additional support The positive trend at the PSX was also in line with broader gains across Asian equity markets. Regional stocks moved higher on Monday after Wall Street ended the previous session at record levels, supported by weaker-than-expected US employment data. The softer US jobs figures reduced expectations of an immediate increase in borrowing costs, encouraging investors to take on more risk. However, uncertainty surrounding diplomatic developments in the Gulf continued to influence energy markets. Oil prices edged higher as concerns persisted over the movement of ships through the Strait of Hormuz, one of the world’s most important routes for global energy supplies. Iran said on Sunday that discussions with Oman over arrangements for new shipping lanes through the Strait of Hormuz were nearing completion. However, Tehran maintained that the waterway would not fully return to normal operations until the United States met additional conditions. The uncertainty contributed to a rise in international crude prices. Brent crude futures increased 0.9% to $84.32 per barrel, while US West Texas Intermediate crude gained 0.7% to $78.74 per barrel. US inflation data in focus Investors are also closely watching the upcoming US consumer inflation data, which could influence expectations regarding the Federal Reserve’s monetary policy. The US July consumer price report, due on Wednesday, is expected to show a 0.1% increase in headline inflation and a 0.2% rise in core inflation, according to market expectations. A stronger-than-anticipated inflation reading could revive concerns that the Federal Reserve may consider raising interest rates in the coming months. Conversely, a softer reading could strengthen expectations of a more accommodative monetary policy. Market pricing currently indicates that expectations for a September rate move have weakened. The probability of such a move has fallen to roughly 44%, compared with about 67% a week earlier. The decline in expectations for higher interest rates supported US Treasury bonds on Friday and helped major Wall Street indices finish at record levels. Asian equities follow Wall Street Asian markets broadly followed the positive lead from the United States on Monday. Japan’s Nikkei 225 advanced around 0.6%, while South Korea’s benchmark index gained approximately 0.5%. Meanwhile, MSCI’s broadest index of Asia-Pacific shares excluding Japan rose about 0.3%. For Pakistan’s equity market, the combination of stronger global sentiment, improved geopolitical expectations and renewed buying in heavyweight stocks provided support at the start of Monday’s session.

Asian stock markets opened higher on Monday, taking cues from Wall Street’s latest gains after weaker-than-expected US employment data reduced expectations of an immediate increase in borrowing costs. However, rising oil prices and uncertainty surrounding developments in the Gulf limited the overall optimism in financial markets. Investors were also closely monitoring the situation around the Strait of Hormuz, a crucial route for global energy supplies, after Iran said discussions over the reopening of the strategic waterway were nearing an agreement. Iran announced on Sunday that negotiations with Oman on establishing new shipping routes through the Strait of Hormuz had reached their final stages. Tehran, however, maintained that normal traffic through the waterway would resume only after the United States fulfilled additional conditions. The uncertainty surrounding the route kept pressure on crude markets. Brent crude futures increased 0.9% to $84.32 a barrel, while US West Texas Intermediate crude gained 0.7% to $78.74 per barrel. The latest increase in energy prices has added another layer of uncertainty for investors ahead of the release of US inflation figures. US Inflation Data in Focus Market participants are now turning their attention to the US consumer price index report scheduled for Wednesday. Economists are expecting headline consumer inflation to rise by 0.1%, while core inflation, which excludes food and energy costs, is projected to increase by 0.2%. A stronger-than-expected inflation reading could revive concerns that the Federal Reserve may be forced to keep interest rates higher for longer and potentially consider another rate increase at its September meeting. Michael Feroli, chief US economist at JPMorgan, said his forecast for core inflation at 0.22% would probably not be sufficient on its own to trigger a rate increase in September. However, he cautioned that repeated monthly increases close to 0.3% could change the outlook. Feroli also highlighted the possibility of a rebound in prices of core goods after they declined for two consecutive months, saying this would be an important factor for markets to monitor. Expectations for a September rate increase have weakened significantly in recent days. Futures markets now indicate roughly a 44% probability of a rate move in September, compared with about 67% a week earlier. Asian Equities Follow Wall Street Higher The decline in expectations for an immediate increase in US interest rates helped US Treasury bonds rally on Friday and supported a strong performance by Wall Street equities. The positive momentum carried into Asian trading on Monday. Japan’s Nikkei index climbed 0.6%, while South Korea’s benchmark market gained 0.5%. MSCI’s broad index of Asia-Pacific shares excluding Japan also advanced 0.3%, reflecting improved investor sentiment across regional markets. The gains came as traders continued to assess the impact of softer US employment data on the Federal Reserve’s monetary policy outlook. Lower expectations for interest-rate increases generally support equities because cheaper financing conditions can encourage investment and improve corporate earnings prospects. European Markets Show Caution European markets were less enthusiastic, with futures pointing to modest declines at the start of trading. EUROSTOXX 50 futures and Germany’s DAX futures each slipped 0.1%, while FTSE futures were down 0.4%. In the United States, S&P 500 futures declined 0.1%, while Nasdaq futures remained largely unchanged. The subdued futures performance followed a particularly strong week for US technology stocks, with the Nasdaq gaining around 5% amid a series of encouraging corporate earnings reports. Strong Corporate Earnings Support US Stocks Corporate earnings have remained a major source of support for US equities. According to analysts at Bank of America, nearly 90% of companies in the S&P 500 had reported their results, with earnings per share rising approximately 30% year-on-year after excluding investment gains recorded by Alphabet and Amazon. The proportion of companies exceeding earnings expectations also remained unusually strong. Around 76% of reporting companies beat analysts’ earnings-per-share estimates, matching the highest level recorded since 2021. Artificial intelligence-related businesses continued to stand out among the strongest performers. Bank of America analysts said companies linked to AI had recorded median earnings-per-share growth of around 28%, compared with approximately 12% for businesses without a direct AI connection. However, analysts expect the pace of AI-related earnings growth to moderate in the coming quarter, with consensus forecasts pointing to growth of around 16%. Investors will have fewer major earnings releases to digest this week, although several important technology companies are scheduled to report results. These include semiconductor manufacturer Applied Materials, networking equipment company Cisco and cloud infrastructure provider CoreWeave. Bond Yields and Dollar Remain in Focus In the bond market, the yield on the benchmark 10-year US Treasury note edged slightly higher to 4.673%. Investors are also preparing for approximately $125 billion in new US government debt issuance during the week, which could influence Treasury yields and broader financial-market conditions. The recent decline in bond yields, combined with improving appetite for riskier assets, has placed pressure on the US dollar. The euro remained close to a seven-week high at around $1.1557. Meanwhile, the dollar was little changed against the Japanese yen at approximately 157.85. Currency traders remain cautious about the possibility of intervention by Japanese authorities if the yen weakens further. Japan has previously expressed concern over sharp and rapid movements in its currency, particularly when excessive weakness threatens to increase import costs. Gold Holds Near Record Levels Gold also remained firmly supported as lower bond yields improved the appeal of the non-interest-bearing precious metal. Spot gold was trading around $4,342 an ounce after recording a gain of more than 7% during the previous week. The metal continues to benefit from a combination of factors, including expectations surrounding US monetary policy, movements in Treasury yields, currency fluctuations and geopolitical uncertainty. With investors awaiting US inflation data and closely watching developments around the Strait of Hormuz, markets are likely to remain sensitive to changes in energy prices and interest-rate expectations in the days ahead.

ISLAMABAD: Pakistan has decided to introduce a new policy framework aimed at facilitating international oil suppliers, improving the availability of petroleum products and strengthening the country’s energy security. Under the proposed Import Policy 2026 through Customs-Bound Storage, foreign petroleum suppliers will be allowed to bring oil and petroleum products into Pakistan and place them in customs-controlled storage facilities without immediately becoming liable for domestic duties and taxes. The new mechanism is designed to provide greater flexibility to international suppliers while creating an additional buffer of petroleum stocks within the country. Suppliers will be able to retain their products in designated customs-bound storage facilities and subsequently decide whether to sell the stocks in Pakistan or re-export them to other destinations. According to the proposed framework, international suppliers will be able to supply petroleum products to local oil marketing companies (OMCs) and refineries when market conditions and domestic requirements warrant such sales. Alternatively, they may re-export the products without necessarily having to enter them into the domestic market. The policy is expected to create a more flexible operating environment for global oil traders and suppliers, potentially encouraging them to establish a stronger presence in Pakistan’s petroleum supply chain. The customs-bound storage mechanism would also allow petroleum products to be stored in the country while remaining under customs control. This could help suppliers manage their inventories more efficiently and respond more quickly to changes in domestic demand. Officials and policymakers see the proposed framework as a step towards improving Pakistan’s petroleum supply security, particularly during periods of heightened international market volatility or disruptions in global energy supplies. The availability of additional stocks within the country could also help reduce the risk of sudden supply shortages by providing a readily accessible reserve that can be released into the domestic market when required. For local oil marketing companies and refineries, the framework could broaden their access to international suppliers and create additional options for sourcing petroleum products. Increased competition among suppliers may also contribute to greater efficiency in the petroleum import and distribution system. The initiative is part of broader efforts to modernise Pakistan’s oil import arrangements and make the energy sector more responsive to changing international market conditions. By allowing foreign suppliers to maintain petroleum inventories under customs control, the government aims to strike a balance between facilitating international trade and maintaining regulatory oversight of products entering the country. The new policy framework is expected to establish clearer procedures governing the import, storage, domestic sale and re-export of petroleum products, while providing international suppliers with greater commercial flexibility.

Consumers continue to bear a substantial burden of taxes, levies and distribution margins on petroleum products, with a significant portion of the prices of petrol and high-speed diesel (HSD) going towards government charges and other components rather than the basic fuel cost. According to official documents, petrol is currently priced at Rs327.62 per litre, while the basic cost of the product stands at Rs197.69 per litre. This means consumers are paying around Rs130 per litre in the form of petroleum levy, taxes, freight-related charges and margins. The documents indicate that the government has imposed a petroleum levy of Rs80 per litre on petrol, making it one of the largest components of the additional charges paid by consumers. In addition to the petroleum levy, petrol carries a climate support levy of Rs5 per litre and customs duty of Rs21.24 per litre. The price also includes an inland freight equalisation margin of Rs7.48 per litre. Meanwhile, oil marketing companies (OMCs) receive a margin of Rs7.87 per litre, while petroleum dealers are entitled to a margin of Rs8.64 per litre. Taken together, these taxes, levies, freight charges and commercial margins add a sizeable amount to the underlying cost of petrol, resulting in a significant difference between the basic product cost and the final price paid at filling stations. Diesel also carries substantial charges A similar situation is visible in the pricing structure of high-speed diesel. According to the documents, the basic cost of HSD has been calculated at Rs264.76 per litre, whereas its notified consumer price stands at Rs380.86 per litre. The difference of approximately Rs116 per litre represents taxes, levies and various margins included in the final price of diesel. The petroleum levy on HSD stands at Rs74.28 per litre, while a climate support levy of Rs5 per litre is also included in the price structure. Consumers are additionally paying Rs15.68 per litre in customs duty on HSD. The inland freight equalisation margin accounts for another Rs4.63 per litre. The pricing structure also provides Rs7.87 per litre as the margin for oil marketing companies and Rs8.64 per litre as the dealers’ margin. The figures highlight the significant role played by government levies and other charges in determining retail petroleum prices. While the basic cost reflects the underlying price of the petroleum product, the final amount paid by consumers also incorporates a range of taxes, levies, freight costs and margins. The petroleum levy remains one of the most prominent components of the pricing structure for both petrol and diesel. The government uses petroleum-related levies as an important source of revenue, while other components are intended to cover costs associated with transportation, marketing and retail distribution. The high level of charges has a direct impact on consumers and businesses, particularly because petrol and diesel are widely used for transportation and commercial activities. Changes in fuel prices can also influence the cost of transporting goods and passengers and may eventually affect prices across different sectors of the economy.

Global crude oil prices moved higher on Monday as uncertainty surrounding the reopening of the Strait of Hormuz continued to influence market sentiment and raise concerns about potential disruptions to international energy supplies. According to media reports, oil prices gained during Asian trading, with investors closely monitoring developments related to the strategic waterway and the ongoing discussions over shipping arrangements. Brent crude futures climbed by more than 1%, moving above the $84-per-barrel mark. US crude oil also recorded a gain of more than 1% during the session, reflecting renewed concerns over the stability of oil shipments through the region. The Strait of Hormuz remains a major focus for global energy markets because of its importance to international oil transportation. Any prolonged disruption to shipping through the waterway could put upward pressure on crude prices and raise concerns about supplies to major importing countries. Market participants are therefore keeping a close watch on diplomatic efforts aimed at restoring normal maritime traffic. Uncertainty over when and under what conditions the waterway will fully reopen has added to volatility in crude oil markets. Iran has said that an understanding with Oman regarding the establishment of new shipping routes is nearing completion. However, Tehran has also maintained that the Strait of Hormuz will not fully reopen until additional conditions involving the United States are addressed. The conflicting positions have left traders uncertain about the timing of a broader resolution. As a result, oil markets remain sensitive to any fresh developments involving Iran, Oman, the United States and maritime traffic through the strait. A sustained increase in crude prices could have wider economic implications, particularly for countries that rely heavily on imported petroleum. Higher international oil prices can increase import bills, put pressure on foreign exchange reserves and contribute to higher domestic fuel costs.

ISLAMABAD: Pakistan’s textile industry has called on the government to take immediate measures to resolve the ongoing goods transporters’ strike, warning that a prolonged suspension of freight services could disrupt export shipments, restrict the supply of cotton and affect the operations of textile mills across the country. The All Pakistan Textile Mills Association (APTMA) has formally approached Federal Minister for Communications Abdul Aleem Khan, seeking urgent government intervention to restore the movement of goods and industrial cargo. According to the association, the All Pakistan Goods Transport Ittehad began an indefinite strike on August 8, creating significant logistical challenges for export-oriented industries, particularly the textile sector. APTMA Chairman Kamran Arshad said the strike had severely affected the availability of vehicles and containers required for transporting textile-related cargo. Export consignments awaiting shipment, imported cotton arriving through ports and locally purchased cotton being transported from markets to textile mills have all been affected by the disruption. The association said the lack of transportation was creating difficulties at multiple stages of the textile supply chain. Export containers cannot be moved efficiently, while imported raw materials face delays in reaching manufacturing facilities. At the same time, locally sourced cotton is also experiencing transportation constraints. APTMA cautioned that the timing of the strike was particularly concerning because cotton inventories at textile mills were already at relatively low levels following the end of the cotton season. Any prolonged interruption in the movement of cotton, it said, could eventually affect manufacturing activity as mills depend on a steady supply of raw materials to maintain production. The association warned that a slowdown in textile production could have broader economic consequences, including delays in export orders, disruption to employment and reduced foreign exchange earnings. Pakistan’s textile sector remains one of the country’s most important export-oriented industries, generating a significant share of the country’s foreign exchange through shipments of garments, textiles, yarn, fabrics and other related products. Industry-wide logistical problems could therefore have repercussions beyond individual mills and exporters. APTMA noted that the textile industry had faced similar transportation disruptions in the past, resulting in delays in export consignments, additional financial costs and interruptions to factory operations. The association stressed that cargo movement is an essential component of export activity and that any prolonged blockage could make it more difficult for exporters to meet delivery schedules agreed with international buyers. It urged the Communications Ministry to facilitate the immediate movement of essential industrial cargo while efforts continue to settle the dispute between transporters and the government. APTMA specifically called for priority arrangements for export containers, imported cotton and other raw materials, as well as locally procured cotton destined for textile mills. The association maintained that ensuring uninterrupted logistics was essential not only for the textile industry but also for protecting Pakistan’s export commitments and broader economic activity. APTMA has consequently appealed to the government to intervene on an urgent basis and establish arrangements that would allow the movement of critical industrial and export cargo until the transporters’ strike is brought to an end.

ISLAMABAD: Gold prices continued their upward trend in Pakistan on Monday, with the price of one tola increasing by Rs800 in the local market. According to data released by the All Pakistan Gems and Jewellers Sarafa Association, the price of 24-karat gold rose to Rs457,336 per tola, following the latest increase. The price of 10 grams of gold also moved higher, climbing by Rs685 to Rs392,091. The fresh increase in domestic gold prices came as international bullion rates also recorded gains. In the global market, gold was trading at around $4,349 per ounce, up by $8 from the previous level. Market participants continue to closely monitor movements in international bullion prices, exchange rates and investor demand, all of which influence gold prices in Pakistan. Gold remains a popular investment and a traditional store of value in the country, particularly during periods of economic uncertainty and currency fluctuations. Changes in international prices are generally reflected in the local bullion market after adjustments for the rupee-dollar exchange rate and other market factors.