News
Bloodbath at PSX as jittery investors jettison shares over ‘weakening rupee, economic uncertainty’
Stocks suffered losses for the fifth straight session on Thursday, bleeding more than 1,700 points on the back of rumours of a hike in interest rates, economic uncertainty, and the unrelenting depreciation of the rupee.
The bourse stayed flat for 10 minutes after the opening bell. However, at 9:40am, the market began its gradual slide with the KSE-100 eventually losing 659 points by 12:00pm, sinking to 45,584.62. After 2:50pm, the market plunged steeply — by 1,784.93 points — to reach a low of 44,459.62. When trading closed, it corrected itself to 45,002.41, down 1,242.14 points, or 2.69pc from the previous day’s 46,244.55.
The last time the market plunged so sharply (by over 1,500 points by day’s end) was after then-prime minister Shehbaz Sharif’s announcement of a 10pc “super tax” on large-scale industries in June 2022.
Intermarket Securities’ Equity head Raza Jafri told Dawn.com that the KSE-100 continued to be under severe selling pressure owing to a lack of confidence emanating from a weak economy, particularly the depreciating rupee.
“While value buyers may return if the dip extends, meaningful valuation rerating needs clarity to return,” he added.
Arif Habib Corp analyst Ahsan Mehanti echoed Jafri’s viewpoint, saying stocks fell across the board on economic uncertainty amid a slump in the rupee and a likely hike in interest rates owing to high inflation.
“The caretaker finance minister’s assertion of a lack of fiscal capacity to give relief on power bills and concerns for unresolved circular debt crises in the power sector played a catalyst role in [yesterday’s] bearish close,” he said.
The market had witnessed a sharp drop after rumours circulated that the State Bank of Pakistan was set to convene an emergency meeting in which it is expected to raise interest rates by up to 300bps, noted JS Global in its daily report.
KASB Securities chairman Ali Farid Khawaja told Dawn.com that investor sentiment “is very fragile”. “Any comment around political instability worries the market,” he said.
However, in Khawaja’s view, the bearish trend “will be short-lived” as he expects the market to recover. “We have seen similar volatility in the past as well.” He said reports of the Saudi crown prince’s visit to Pakistan “should be a strong catalyst for investor sentiment”.
Yousuf M. Farooq, director of research at Chase Securities, said market sentiment has changed over the last few days because of the anticipation of a rate hike.
“The market is expecting higher rates on changing expectations for inflation on the back of a continuously sliding rupee, higher oil and electricity prices and an anticipation of second-round impacts.”
He added that higher interest rates mean a higher cost of capital and cheaper stock prices.
“The market on the other hand is extremely cheap when compared to other crisis-ridden countries. The PSX is trading at three-four times earnings and earnings, dividends and buybacks have remained robust.”
Investor Jibran Sarfaraz told DawnNewsTV said a reduced inflow of dollars and the rumours circulating about an impending interest rate hike — by an expected 2 to 3pc — have resulted in the sell-off.
“You can see there is pressure on the market because of this, and the dollar [rate] is also increasing day by day which is creating problems for importers and investors are worried.”
He said until economic and political stability returns, “nothing can be done”.
Sarfaraz’s solution: controlling inflation and, by extension, the interest rate. “Whichever government comes to power should focus on stabilising the dollar [and inflation]. The more interest rates stay high, the more investors will hesitate.
“Unless the interest rate eases, investors won’t come because they’re getting 22-23 pc interest rates [by stowing their money in banks]. They will move where the higher profit margin is higher.”
Meanwhile, economic and business journalist Afshan Subohi highlighted predictability was crucial for any business to thrive.
“The capital market, in particular, operates and sustains on future expectations,” she told Dawn.com, pointing out that “current nervousness” in the PSX and the index dive manifested the fear for the future more than the current economic challenges.
“All relevant quarters including the current set of power yeilders need to be mindful of the fact that people and businesses are losing hope,” Subohi said.
She added that instead of inventing arguments to delay elections, efforts should be directed to hold polls in 2023 and ensure the peaceful transfer of power as quickly as possible.
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News
Imran’s life ‘in danger’, moved to lower class cell in Adiala Jail: lawyer

Former prime minister Imran Khan’s lawyer, Naeem Haider Panjutha, claimed on Tuesday that the PTI chief was moved to a lower class cell at the Adiala Jail last night and feared the ex-premier’s life was in danger.
Imran was shifted to Attock jail on August 5, 2023, after a court sentenced him to three years in prison in the Toshakhana case for concealing details of gifts he received as the prime minister of Pakistan.
After his sentence in the Toshakhana case was suspended by the Islamabad High Court, the government detained the ex-premier in the cipher case. He has since remained behind bars on judicial remand.
On September 26, Imran was shifted to Central Jail Adiala from District Jail Attock following IHC orders passed on a plea filed by the PTI.
Last night, the police ramped up security in the vicinity of the Adiala jail by deploying elite commandos and setting up additional security pickets to ensure foolproof measures. The decision was taken in light of recommendations by the Special Branch and relevant departments following a survey of Adiala Jail.
Talking to reporters in Islamabad today, Panjutha, spokesman to Imran on legal affairs, said Imran’s wife Bushra Bibi met the former prime minister in Adiala Jail today.
“There is danger to Imran Khan’s life,” he claimed. “Imran can be slow food poisoned … he is being mentally tortured and his movement has been restricted.”
Panjutha alleged that he had received reports last night that the PTI chief was moved to a lower class cell. “Security personnel has been stationed outside the cell and mobile phones have been taken for them,” he said, claiming that these were new ways of “breaking” Imran.
The PTI lawyer added that a petition pertaining to Imran’s conditions in jail was filed in the IHC and the application was fixed for hearing on October 5.
“There were objection [by the court] earlier that the matter has already but decided but no directions have been passed on Imran Khan’s health, which is a basic fundamental right enshrined in the Constitution,” Panjutha added.
IHC to hear Bushra Bibi’s petition seeking Imran’s protection in jail
A day earlier, Bushra Bibi had filed a petition in the IHC seeking protection of her husband. She expressed the apprehension that the jail administration might poison the meal of her husband and sought permission for homemade food for the detained PTI chief.
However, the registrar’s office had raised objections to the plea, which were heard by IHC Chief Justice Aamer Farooq today.
During the hearing, Bushra Bibi’s lawyer Latif Khosa appeared in court and contended that the PTI chairman’s life was in danger. He recalled that Imran had also survived an assassination attempt.
This application has been filed for the security and protection of his rights in jail, Khosa said.
Subsequently, the IHC removed the objections to the plea and fixed the petition for hearing on Oct 5.
News
LHC orders Punjab govt to ensure PTI leader Hassaan Niazi’s contact with father

The Lahore High Court on Tuesday directed the interim Punjab government to ensure that contact is established between incarcerated PTI leader Hassaan Niazi and his father within a fortnight.
The order comes on a petition filed by Hassaan’s father, Hafeezullah Niazi, who petitioned the court to recover and allow a meeting with his son, who is in military custody.
Hassaan, a barrister and nephew of PTI chairman Imran Khan, was in hiding after the May 9 riots. He was arrested from Abbottabad on August 13 and handed over to the military for trial over his alleged involvement in the attack on the Lahore corps commander’s house.
On August 15, Hassaan’s father, Hafeezullah, filed a petition in the LHC seeking recovery of his son.
Two days later, a military official wrote to the police, requesting it to hand over Hassaan’s custody to the military for “trial by the court martial”.
Before the LHC began hearing the father’s plea, the police submitted a report in the court on August 18, detailing the offences in which the former was found to be allegedly involved.
The report was submitted by Punjab Additional Advocate General (AAG) Ghulam Sarwar while Justice Sultan Tanveer presided over the hearing.
The AAG informed the LHC in the hearing, “Hassaan Niazi has been handed over to the military”. He added that Hassaan was “named in the Jinnah House attack case and was a main suspect”.
The interim Punjab government told LHC in the hearing on August 26 that visiting a suspect in military custody was not allowed under any law.
Additional Advocate General Ghulam Sarwar Nahang stated in the hearing that the SC had already taken note of the trials of the May 9 suspects in military court and the question of the suspects’ meeting with family members was also pending before it.
He said proceedings in the high court on the same question of law would complicate the matter.
On September 28, barrister Faiz Ullah Khan Niazi submitted that 45 days have passed and since then the petitioner has been unaware of the whereabouts of his son.
In today’s hearing, a single-member bench comprising Justice Sultan Tanvir Ahmad ordered the Punjab government to establish contact between Hassaan and his father within a fortnight.
According to the written order, a copy of which is available with Dawn.com, the petitioner’s lawyer told the court his client would be satisfied if he was allowed to establish contact with his son.
According to the order, the government officials maintained that since the matter is still pending adjudication before the apex court, it is “in the fitness of the circumstances to adjourn the case till the decision is passed by the Supreme Court”.
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News
Knee injury forces Arshad Nadeem out of Asian Games a day before javelin throw final

Pakistan’s star javelin thrower Arshad Nadeem was on Tuesday ruled out of the Asian Games, under way in the Chinese city of Hangzhou, due to a chronic knee injury, the athlete confirmed to Dawn.com.
Nadeem, a trailblazer and beacon of hope for the future of athletics in the country, won silver at the World Athletics Championship in Budapest earlier this year.
However, in a big blow for his fans, the athlete dropped out of the Asian Games just a day before the tournament’s Men’s Javelin Throw final, scheduled for Wednesday.
According to a statement issued by Pakistan’s Chef de Mission at the Asian Games, Nadeem had complained of “persistent pain for several weeks” at the first training session in Hangzhou on Sept 27.
It said the concern had become particularly pressing in the aftermath of the World Athletics Championship.
“On Oct 2, he again complained of pain in the right knee and express a desire to undergo an evaluation to determine the impact on his ability to participate in the Javelin Throw event at the Asian Games,” the statement said.
Subsequently, the Pakistan contingent’s chief medical officer recommended a comprehensive check-up of Nadeem who then underwent a thorough examination, including a non-invasive test i.e. MRI at a local
hospital here in Hangzhou.
“After consulting the medical personnel, Nadeem has now decided not to participate in the Asian Games in order to prevent any untoward situation that may hinder his training program and participation in the Paris 2024 Olympic Games,” the statement concluded.
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