CMYK
Tuesday, 4 February, 2020 I 9 Jamadi-ul-Sani, 1441 I Rs 20.00 I Vol X No 216 I 16 Pages I Lahore Edition
Stock market fallS to record inflation g
Once bitten, twice shy Chaudhrys refuse to budge g
pSX plungeS 1,221 poIntS
pervez elAHI tellS SHAfqAt MAHMood tHey won’t Hold furtHer tAlkS untIl govt fulfIllS proMISeS STORY ON PAGE 03
How can you question someone’s patriotism, court asks govt g
KARACHI STAFF REPORT
i
nveStorS of the pakistan Stock exchange (pSX) witnessed a bloodbath on the first trading session of the week on Monday, as the indices moved south all day long with the benchmark kSe-100 Index slipping below the 41,000 mark. Investors’ confidence took a massive hit following the government’s announcement of inflation figures for the month of January 2020. Moreover, the coronavirus outbreak, which has caused a decline in the global stock markets, also impacted the pSX. According to figures released by the pakistan bureau of Statistics (pbS), inflation was recorded at 14.6pc (highest in nine years) in January 2020 due to an increase in food and energy cost. on a month-onmonth basis, inflation jumped by 1.97pc from 12.63pc in december 2019 to 14.60pc in January 2020. breaking the 41,000 mark, the kSe-100 Index recorded its intraday low at 40,233.64 after shedding 1,397.30 points or -3.36pc.
It ended lower by 1,221.56 points at 2.93pc at 40,409.38. Among other indices, the kMI-30 Index dropped 2,294.21 points to end at 64,780.81, while the kSe All Share Index fell by 751.93 points, closing at 28,315.61. out of the total traded scripts, only 43 advanced while 269 declined. Sectors behind the kSe-100’s fall included banking (-320.29 points), oil & gas exploration (-271.25 points) and fertiliser (136.59 points). Among the companies, pak petroleum limited (ppl -110.55 points), Habib bank limited (Hbl -96.86 points) and engro Corporation limited (engro -90.70 points) dented the index the most. the oil & gas exploration sector lost 4.52pc from its cumulative market capitalization, with oil and gas development Company limited (ogdC -4.22pc), pak petroleum limited (ppl -5.33pc), Mari petroleum Company limited (MArI -4.35pc) and pakistan oilfields limited (pol -3.66pc) closing in the negative zone. In a notification to the exchange, Mithchells fruit farm limited (Mffl
+1.43pc) announced that it has finalised bioexyte food (private) limited as a preferred bidder for the acquisition of more than 30pc shares of the company. Mffl is in the process of negotiating and finalising bidding transaction documents. According to analysts, government is facing a great difficulty in managing the fiscal side as the policy changes it brought could not be materialised into revenue collection. Analysts also believed that the market was reflecting macroeconomic weakness due to much higher-thanexpected Consumer price Index (CpI) reading, which came in at 14.6 per cent for January against the expected 13.6 per cent. Analysts also said that monetary loosening will be delayed and on the fiscal side the government now needs a mini-budget. they further said that the reason for today's slide was the high inflation reading. However, they added, international markets also saw a downfall which was being reflected in the stock market, primarily backed by fears from the spread of the coronavirus.
Pakistanis stranded in virus-hit China return home as flight operations resume
IHC grAntS bAIl to 23 ACtIvIStS Held on SedItIon CHArge for proteStIng AgAInSt ptM leAder MAnzoor pASHteen’S ArreSt
Court wants to know who authorised probe against Justice Isa STORIES ON BACK PAGE & 02
Senate rejects bill proposing increase in lawmakers’ salaries STORY ON PAGE 03
SC stops FIA from investigating Peshawar BRT project STORY ON PAGE 03
IMF concerned over expected change of face in FBR STORY ON PAGE 12 more inside stories on back pake
US demands more from Afghan Taliban on ceasefire before deal Seven of a family killed by mortar fired from Afghanistan
China stocks crash on virus fears after long market break STORIES ON BACK PAGE & 10 CMYK
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