ISLAMABAD: The Pakistan Stock Exchange (PSX) smashed past the 116,000 mark during intraday trading on Monday on anticipation that the central bank will slash the interest rate at the monetary policy meeting today, analysts said.
The central bank has already slashed interest rates by 700 basis points (bps) in four consecutive meetings since June, bringing it to 15 percent.
According to a poll by Topline Securities published earlier this month, 71 percent of participants expect the central bank to announce a minimum rate cut of 200bps.
The benchmark KSE-100 index climbed 1,932.63 or 1.69 percent to reach an intraday high of 116,234.43 points at 2:58 p.m. from the previous close of 114,301.80.
“Anticipation of a sharp interest rate cut together with strong liquidity with mutual funds is driving the market up,” Head of Equities at Intermarket Securities, Raza Jafri, told Arab News. “It is a broad-based increase, with only banks in the red today on fears of higher taxation.”
The upward surge was driven by the anticipation of a “sharp interest rate cut” by the State Bank, boosting economic growth, corporate profitability and strong liquidity in mutual funds fueled by increased investor confidence and higher savings rates.
Pakistani stocks have been performing significantly well this month, closing at record highs multiple times.
“KSE 100 Index gained 4.83 percent on week-on-week basis making it eight consecutive positive closing, as expectation of interest rate cut in the upcoming monetary policy meeting kept the investor interest robust and continuous buying by mutual funds provided further stimulus to the market,” Topline said in a weekly market review on Friday.
Trade data released by the Pakistan Bureau of Statistics also supports positive investor sentiment as the trade deficit narrowed by 7.39 percent during the first five months (July-November) of the current fiscal year, standing at $8.651 billion, compared to $9.341 billion during the same period last year.
Exports rose by 12.57 percent to hit $13.69 billion, while imports increased by 3.90 percent to $22.342 billion during this period. November’s trade deficit narrowed even further, dropping by 18.60 percent year-on-year to $1.589 billion compared to $1.952 billion in November 2023.
Middle East holds highest growth potential for private capital in 2025: Report
Asset managers surveyed private equity and venture capital as the top investment opportunities
Survey was carried out on the sidelines of Apex Invest Abu Dhabi in November
Updated 1 min 26 sec ago
Nirmal Narayanan
RIYADH: The Middle East region is offering the highest growth potential for private capital in 2025, driven by government initiatives and sectoral reforms, according to a survey.
The Apex Group, the London-based financial solutions provider behind the poll, said asset managers surveyed private equity and venture capital as the top investment opportunities in the Middle East.
As detailed in the survey, which was carried out on the sidelines of Apex Invest Abu Dhabi in November, 39 percent of the attendees shared bright prospects for private capital deployment in the region.
A report released by Wamda this month revealed that startups in the Middle East and North Africa region raised $258 million in November, representing a 92 percent rise compared to the previous month.
“The Middle East remains an attractive proposition for asset managers. Various government initiatives, private sector reforms, and strong capital inflows are driving investment into the region’s domestic markets,” said Christiane El Habre, regional managing director, Middle East at Apex Group.
“This is creating opportunities for asset managers who can allocate capital productively and create returns via active management strategies,” she also said.
El Habre added that the survey results directly reflect the growing maturity of the asset management landscape in the Middle East region.
Despite the optimistic outlook, attendees highlighted several challenges in achieving portfolio diversification goals, with 54 percent underlining access to quality assets as a key constraint.
Some 21 percent of the attendees who took part in the survey said that market volatility is also a major factor that is impeding progress, while 13 percent opined regulatory constraints and capital-raising challenges as causes of concern.
The survey report revealed that 30 percent of the poll participants considered the Asia-Pacific region as a good destination for private capital deployment, while 22 percent preferred North America.
Europe, Africa, and South America were rated less in the survey for deployment of private capital due to various socioeconomic and geopolitical factors, said Apex Group.
Some 88 percent of the survey panelists said that public equity and venture capital firms are increasingly engaged with portfolio companies to drive returns and safeguard impact.
The Apex Invest Abu Dhabi event witnessed the participation of senior representatives from prominent regional asset managers, including Saudi Arabia’s Public Investment Fund, Mubadala Investment Co., and Abu Dhabi Investment Authority, as well as key members from family offices and investor institutions.
Saudi Arabia spotlights private sector’s role in driving logistics transformation
Updated 40 min 33 sec ago
Nadin Hassan
RIYADH: Saudi Arabia’s private sector is playing a pivotal role in driving the Kingdom’s transformation into a global logistics hub, a top official said.
Speaking at the sixth edition of the Supply Chain And Logistics Conference in Riyadh, Rumaih Al-Rumaih, vice minister of transport and logistics services and president of the Transport General Authority, highlighted the critical contributions from businesses.
“The main player in achieving anything in the logistics sector is the private sector. Truly, the private sector is the one delivering results. The government’s role is to enable,” Al-Rumaih said.
He added: “If we visit the exhibition, we’ll see the private sector at the forefront, not the government because they are the real achievers.”
Saudi Arabia is seeking to become a global logistics hub by leveraging its strategic location at the crossroads of Asia, Africa, and Europe. Through its Vision 2030 plan, the Kingdom is investing in transport, infrastructure, and technology to reduce oil dependence and modernize supply chains.
Al-Rumaih credited the economic diversifiavtion initiative for providing a structured roadmap, stating: “This did not happen by chance; it was a clear vision and target. The Kingdom’s strategic location connects three continents, making it a natural global logistics hub.”
He also emphasized the private sector’s role in forging strategic partnerships with major global players, saying: “The private sector responded to Vision 2030 by growing rapidly and forming partnerships with major players like CEVA, DSV, and DB Schenker.”
Building infrastructure
Bader Al-Dulami, vice minister of transport and logistics services for road affairs, underscored the importance of infrastructure in enabling success.
“The road sector is undoubtedly one of the most significant enablers of the logistics sector. There is no logistics sector without roads that connect various destinations,” Al-Dulami said.
He added: “There is no successful logistics sector without a network of safe, high-quality roads that can accommodate the increasing demand in this sector.”
Bader Al-Dulami, vice minister of transport and logistics services for road affairs. Screenshot
Saudi Arabia currently ranks first globally for road connectivity, a milestone Al-Dulami attributed to sustained investment and strategic planning.
“Through joint efforts, we have managed to reduce accident rates significantly. From 2016 to the present, the accident rate has decreased by more than half — a 50 percent reduction,” he said.
The vice minister continued: “In 2016, there were 28 deaths per 100,000 people; today, it is less than 13 deaths per 100,000. However, our journey is far from over, as we aim to achieve the target of reducing this number to five by 2030”
Road maintenance
Al-Dulami announced plans for phase two of performance-based maintenance contracts, which will incorporate advanced technologies to enhance road sustainability.
“The private sector will play a key role, especially in the operation and maintenance of roads. By the end of this month, we will launch phase two of performance-based maintenance contracts,” he said.
“These contracts will incorporate a wide range of modern technologies that will be applied to roads. Many privatization projects have also been initiated,” Al-Dulami added.
He emphasized the importance of collaboration with the private sector, describing it as a reliable and dynamic partner.
“The private sector is a true partner that communicates its needs to us. We are not rigid when it comes to making changes that could benefit this sector,” Al-Dulami said.
He continued: “On the contrary, we are extremely agile, and what you see today in terms of change and development is a result of this openness to everything new and everything that contributes to advancing this sector.”
Ambitious goals
Concluding the session, Al-Rumaih reaffirmed the Kingdom’s ambitious goals.
“We will not stop here. Our aspirations are sky-high, and the journey to position Saudi Arabia as the top global logistics hub continues,” he said.
The two-day Supply Chain And Logistics Conference brought together industry leaders, government officials, and stakeholders to showcase Saudi Arabia’s achievements and explore further opportunities for public-private collaboration in the logistics sector.
In his keynote speech on the conference’s second day, Ahmed Al-Hassan, assistant minister of transport and logistics services, highlighted the ministry’s expanded role.
“The ministry has transitioned from executing projects to supervising strategies that align with national goals and enhance global competitiveness,” he said.
Al-Hassan praised initiatives like the Global Logistics Forum – held in Riyadh in October – describing it as a key platform for attracting international investments and strengthening Saudi Arabia’s role as a leader in the sector.
Saudi Social Development Bank and SNB to launch financing portfolio for entrepreneurs
Agreement set to provide $2.66 million in funding to entrepreneurs
Newly launched portfolio will provide individuals with entrepreneurial knowledge
Updated 16 December 2024
Nirmal Narayanan
RIYADH: Saudi Arabia’s Social Development Bank has signed an agreement with the Saudi National Bank to launch a financing portfolio to support entrepreneurship in the Kingdom.
The financing portfolio is being introduced as part of SNB’s Ahalina program, with the agreement set to provide SR10 million ($2.66 million) in funding to entrepreneurs, according to the Saudi Press Agency.
The deal was inked against rising entrepreneurship in Saudi Arabia, with the number of active commercial registrations in the Kingdom reaching 1.51 million by the end of the third quarter of the year.
According to the SNB website, it launched the Ahalina strategy to empower various society groups, “converting them into positive and developmental energies capable of supporting the national economy.”
Tareq Al-Sadhan, the CEO of SNB, said: “Through the Ahalina program, we seek to consolidate our commitment to the community by supporting entrepreneurs and start-ups, which enhances our contributions to achieving sustainable development, and confirms the role of social responsibility as an integral part of our corporate strategy.”
The newly launched portfolio will also provide individuals with entrepreneurial knowledge. It will help them acquire the necessary skills to secure project funding and contribute to Saudi Arabia’s socio-economic development.
The agreement also aligns with the more expansive goal of SNB, which is to empower individuals and institutions and provide community support in all regions of the Kingdom, contributing to Saudi Arabia’s Vision 2030 program, the SPA report added.
“This agreement represents an extension of the bank’s march toward achieving sustainable development, promoting entrepreneurship, and supporting Saudi youth to build sustainable projects with a tangible impact,” said Sultan Al-Hamidi, the CEO of SDB.
Under the deal, both SNB and SDB will work to enhance cooperation between the public and private sectors to boost the entrepreneurial landscape in the Kingdom.
In November, Saudi Arabia’s General Authority for Small and Medium Enterprises, also known as Monsha’at, organized the Biban 24 event to support SMEs in the Kingdom, where agreements worth SR35.4 billion were signed.
During the event, Sami bin Ibrahim Al-Husseini, the governor of Monsha’at, said that such events are crucial to strengthen Saudi Arabia’s entrepreneurial framework and are aligned with the nation’s Vision 2030 objectives to boost the SME sector’s contribution to the national gross domestic product.
Oil Updates — crude eases from highest in weeks, investors eye Fed rate cuts
Oil prices were bolstered by new EU sanctions on Russian oil last week
Fresh US sanctions on entities trading Iranian oil are already driving prices of the crude sold to China to the highest in years
Updated 48 min 26 sec ago
REUTERS
SINGAPORE: Oil futures eased from their highest levels in weeks as traders took profit while waiting for a meeting of the Federal Reserve later this week for an indication of further rate cuts, according to Reuters.
Falls were limited, however, by concerns of supply disruptions in the event of more US sanctions on major suppliers Russia and Iran.
Brent crude futures fell 21 cents, or 0.3 percent, to $74.28 a barrel by 07:24 a.m. Saudi time after settling at their highest level since Nov. 22 on Friday.
US West Texas Intermediate crude dropped 30 cents, or 0.4 percent, to $70.99 a barrel after reaching its highest settlement level since Nov. 7 in the previous session.
“After last week’s +6% rally, and with crude oil trading towards the top of recent range highs, we are likely seeing some light profit-taking,” IG market analyst Tony Sycamore said.
“Also, it is likely a lot of trading books at banks and funds shut up shop at the end of last week and have reduced appetite for positions over the festive season.”
Oil prices were bolstered by new EU sanctions on Russian oil last week and expectations of tighter sanctions on Iranian supply, he added.
US Treasury Secretary Janet Yellen told Reuters on Friday that the US is looking at further sanctions on “dark fleet” tankers and will not rule out sanctions on Chinese banks as it seeks to reduce Russia’s oil revenue and access to foreign supplies to fuel its war in Ukraine.
Fresh US sanctions on entities trading Iranian oil are already driving prices of the crude sold to China to the highest in years. The incoming Trump administration is expected to ramp up pressure on Iran.
Oil prices were also supported by key central bank interest rate cuts in Canada, Europe and Switzerland last week and expectations the Fed will cut rates this week, Sycamore said.
The Fed is expected to cut interest rates by a quarter of a percentage point at its Dec. 17-18 meeting which will also provide an updated look at how much further Fed officials think they will reduce rates in 2025 and perhaps into 2026.
Lower interest rates can boost economic growth and demand for oil.
Still, forecasts of ample supply in 2025 by the International Energy Agency and CNPC’s forecasts of oil demand decline in China, the world’s second-largest consumer, after consumption peaked in 2023 are factors that will continue to weigh on global oil markets.
PIF’s Dan Co. to launch resort in Al-Ahsa to boost Saudi tourism sector
Updated 15 December 2024
Reem Walid
RIYADH: Saudi Arabia’s tourism sector is poised for significant growth with the announcement of a new resort project in Al-Ahsa by Dan Co., a subsidiary of the Public Investment Fund.
The initiative is part of the Kingdom’s broader strategy to enhance the tourism industry and elevate hospitality standards across the country.
The resort will integrate sustainability, innovation, and high-quality service, in line with Saudi Arabia’s Vision 2030 objectives. By focusing on these key principles, the project aims to enhance the appeal of Al-Ahsa as both a local and international tourism destination.
This move is also aligned with the Kingdom’s ambitious goal of attracting 150 million visitors by 2030 and increasing the tourism sector’s contribution to the national gross domestic product from 6 percent to 10 percent.
Saad Al-Kroud, chairman of Dan Co., highlighted that the resort will leverage Al-Ahsa’s unique natural beauty and rich cultural heritage.
The project will promote rural, recreational, and ecotourism, offering visitors a variety of experiences that showcase the region’s diverse landscapes and agricultural legacy.
“By focusing on the natural environment and cultural heritage, this development will offer distinctive experiences that cater to a wide range of interests, further solidifying Al-Ahsa’s position as a key destination in Saudi Arabia’s tourism map,” Al-Kroud said.
As part of PIF’s broader vision to transform the Kingdom’s tourism landscape, Dan Co. is committed to promoting agritourism, adventure tourism, and ecotourism.
These initiatives aim to deepen the connection between visitors and nature, while creating economic opportunities for local communities and fostering sustainable development.
Through this project, Dan Co. aims not only to enhance Saudi Arabia’s tourism offerings but also to help diversify local economies and support the growth of thriving businesses in the region.
