Friday, 17 May 2024

Pakistan Stock Exchange index up 3.09%WoW

The pre-budget rally continued throughout the week ended May 17, 2024 with Pakistan Stock Exchange benchmark index closing at its historic high, as the bears failed to seize control at every turn and investor’s confidence remained high, driving the market to sustained gains. The benchmark index closed at 75,342 points on Friday with a gain of 2,257 points, up 3.09%WoW.

The market's bullish momentum is mainly attributed to recent talks with the IMF proceeding smoothly, without any hiccups.

Further, SPI weekly inflation is consistently on downward trend for the past five weeks, indicating a tapering down of CPI figures for the ongoing month.

Prices of petroleum prices, MS and HSD were decreased by PKR15.39 and PKR7.88 per liter, respectively, in the last fortnightly review.

Yields in the mid-week T-Bill auction also declined slightly.

Of significant importance, current account for April 2024 posted another surplus of US$491 million, lowering 10MFY24 deficit of mere US$202 million. With just two months left, FY24 CAD is expected to close substantially below the IMF’s forecast of US$3 billion.

Confirmation of the withdrawal of tax exemption from the FATA/PATA region has instilled overall positivity in the steel sector.

Alongside, additional revenue measure recommendations from IMF team comes on surface including proposals to increase withholding advance tax across automobile, real estate, and agricultural sectors.

Average trading volumes were down by 22.7%WoW to 554.50 million shares, as compared to 717.34 million shares traded in the earlier week.

Other major news flows during the week included; 1) during H1FY24, driven by agri sector, real GDP grew by 1.7% as per the central bank, 2) foreign investment peaked by 84% to 30-month high and 3) Ministry of Finance refused to extend subsidy on urea fertilizer due to financial snags.

Top performing sector were: Automobile parts & Accessories, Engineering, Synthetic & Rayon, Real Estate Investment Trust and Woolen, while Cable & Electrical goods, Close-end Mutual Fund, Transport, Tobacco and Power Generation & Distribution were amongst the worst performers.

Major selling was recorded by Banks/DFI with a net sell of US$9.85 million. Foreigners absorbed most of the selling with a net buy of US$14.94 million.

Top performing scrips of the week were: THALL, INIL, PSX, PKGP, and ISL, while top laggards included: PAEL, PTC, AGP, KEL, and NPL.

Market is anticipated to remain focused on FY25 budget related news in the near term. Overall, some profit taking can be expected with the index at its record high. However, with foreign buyers consistently purchasing, the rally is expected to continue amidst the market's attractive valuations.

The upcoming MPC meeting, scheduled just after the budget, will also be in the limelight.

Despite real interest rates being significantly positive, new taxation measures could pose a risk to the inflation outlook and possible start of monetary easing.


 

Aid trucks moving ashore via US military pier

Aid trucks began moving through a temporary US-built pier off the Gaza Strip on Friday, amid growing international pressure to get more supplies into the besieged coastal enclave, where hundreds of thousands face an acute humanitarian crisis.

The US Central Command said trucks carrying humanitarian assistance began moving ashore 0600 GMT.

The floating pier was pre-assembled by the US military at the Israeli port of Ashdod and moved into place this week on the shore of Gaza, which lacks port infrastructure of its own, however no US troops went ashore, Centcom said.

Aid arriving at the pier would be part of "an ongoing, multinational effort" and would involve commodities donated by a number of countries and humanitarian organisations, it said.

The supplies will be subject to Israeli security checks in Cyprus before arriving but will have to pass through additional Israeli checkpoints once it lands, US administration officials have said.

Aid groups, the United Nations and Israel's closest allies, have all demanded that it do more to get aid into Gaza, which has been largely laid to waste by the Israeli campaign launched last year.

A new wave of upheaval has created additional need, as hundreds of thousands of people already displaced by the war and sheltering in the southern Gaza city of Rafah have evacuated to areas in central Gaza in anticipation of an Israeli assault.

Israel has said it is stepping up efforts to get aid into Gaza, and the military said 365 aid trucks had entered through the Kerem Shalom and Erez crossing points on Thursday, carrying flour and fuel.

In addition, hundreds of tents were delivered, intended for people evacuated from Rafah to the Al-Mawasi area, which Israel has declared a humanitarian zone.

"The IDF will continue its efforts to allow humanitarian aid to enter the Gaza Strip by land, air, and sea, in accordance with international law," it said in a statement.

The Israeli military said new inspection routes had been opened up in the occupied West Bank through the Tarqumiyah and Beitunia crossing points.

However, supplies coming through the West Bank have been disrupted by attacks carried out by Israeli settlers protesting against sending aid into Gaza.

 

Thursday, 16 May 2024

Arab League calls for immediate Israeli withdrawal from Gaza

The Arab League Summit called for immediate withdrawal of Israeli occupation forces from the Gaza Strip and deployment of international peacekeeping forces in the occupied Palestinian territories.

A joint communiqué called “Manama Declaration,” issued at the end of the one-day summit in Manama, Bahrain on Thursday, leaders of the 22-nation Arab League reiterated their firm position for a just and comprehensive peaceful settlement of the Palestinian issue and their support for an international peace conference on the Israeli-Palestinian conflict.

The 33rd summit was held under the chairmanship of Bahraini King Hamad bin Isa Al-Khalifa. Crown Prince and Prime Minister Mohammed bin Salman, headed the Saudi delegation to the summit.

The Arab leaders called on the international community to advance the peace process toward achieving a just peace based on the two-state solution. “We call for the deployment of international protection and peacekeeping forces affiliated with the United Nations in the occupied Palestinian territory until the two-state solution is implemented,” the statement said.

The summit issued a collective call to convene an international conference under the auspices of the United Nations to resolve the Palestinian issue based on the two-state solution, which ends the Israeli occupation of all occupied Arab territories.

The Arab leaders directed their foreign ministers to take immediate action to communicate with the Ministers of Foreign Affairs of the countries of the world to urge them to quickly recognize the State of Palestine.

The summit also reaffirmed the Arab League’s adherence to the freedom of maritime navigation in international waters in accordance with the rules of international law and the conventions of the law of the sea, and to guarantee freedom of navigation in the Red Sea, the Arabian Sea, the Gulf of Oman and the Arabian Gulf.

The leaders strongly condemned the threats to commercial shipping which threaten freedom of navigation, international trade and the interests of the countries and peoples of the world.

Highlighting Palestine as the core issue of all Arab issues, the leaders said, “We reaffirm the firm and permanent Arab position in support of the Palestinian issue, which remains a central issue and the foundation upon which peace and stability in the region can be achieved, and our categorical rejection of all attempts to displace the Palestinian people inside or outside their land, as a clear violation of international law, which we will collectively confront. We reaffirm our strong condemnation of all illegal Israeli measures and practices that target the Palestinian people and deprive them of their right to freedom, statehood, life and human dignity, as are guaranteed by international laws.”

“We reiterate our firm position and call for a just and comprehensive peaceful settlement of the Palestinian issue, and we support the call of Mahmoud Abbas, President of the State of Palestine, to convene an international peace conference and to take irreversible steps to implement the two-state solution in accordance with the Arab Peace Initiative and resolutions of international legitimacy to establish an independent and sovereign Palestinian state on the lines of June 04, 1967 with East Jerusalem as its capital, and to accept its membership in the United Nations as an independent and fully sovereign state in common with other countries in the world, and to ensure the restoration of all legitimate rights of the Palestinian people, in particular, the right to return and self-determination, empowerment and support.”

The summit called for an immediate Israeli military withdrawal from Rafah city in Gaza and an immediate and permanent ceasefire in the Gaza Strip. They also underlined the need to end all attempts of forced displacement and all forms of siege and for full and sustainable access to humanitarian aid.

“We reiterate our categorical rejection of any attempts to forcibly displace the Palestinian people from their land in the Gaza Strip and the West Bank, including East Jerusalem. We call for urgent action for an immediate and permanent ceasefire, an end to the aggression in the Gaza Strip, protection of civilians and the release of hostages and detainees.”

“We stress the sanctity of the occupied city of Jerusalem and its place among the monotheistic religions. We reject and condemn all Israeli attempts aimed at the Judaization of Jerusalem, changing its Arab, Islamic and Christian identity, or changing the historical and legal status quo in it and its holy sites, whilst also stressing the need to protect the holy places in Bethlehem and to not compromise its cultural identity and religious sanctity.”

The Arab leaders condemned in the strongest terms “the ongoing brutal Israeli aggression on Gaza and the crimes committed against the Palestinian people, as well as the unprecedented Israeli violations of international law and human rights law.”

According to the statement, these violations include targeting civilians and infrastructure, using siege and blockade tactics, attempting forced displacement, and killing and injuring tens of thousands of innocent Palestinians.

The Arab leaders slammed the extension of Israeli aggression to Rafah city stressing that the city has become a refuge for over a million displaced persons and that any military operations in this area would have devastating humanitarian consequences. They denounced the fact that Israel has seized control of the Palestinian side of the Rafah crossing to tighten the siege on Gaza and prevent humanitarian aid from crossing the border into the strip.

The statement also strongly condemned Israeli settlers’ targeting of humanitarian and media organizations in Gaza and their attacks on aid convoys, including the recent attacks on Jordanian aid convoys, along with the failure of Israeli authorities to fulfill their legal responsibility to protect these convoys.

The Arab leaders called for an immediate international investigation into these attacks, and they urged the international community and influential powers to transcend political calculations and double standards and to fulfil their fundamental and legal responsibilities by reigning in Israel’s aggressiveness and blatant violations of international law and humanitarian law.

The summit underlined the need for activating relevant international bodies to conduct independent, impartial investigations and hold accountable those responsible for the crimes committed against the Palestinian people since the start of the Israeli aggression on Gaza.

The Arab leaders renewed their call to the United Nations Security Council to grant full membership to Palestine State.

“We welcome the decision of the United Nations General Assembly at its meeting on May 10, 2024 on the request of the State of Palestine to obtain full membership of the United Nations, supported by 143 countries, and we call on the United Nations Security Council to reconsider its resolution issued in this regard in its session on April 18, 2024.”

The summit also called for unity among the Palestinians. “We call on all Palestinian factions to join together under the umbrella of the Palestine Liberation Organization (PLO), the sole legitimate representative of the Palestinian people, and to agree on a comprehensive national project and a unified strategic vision to focus efforts towards achieving the aspirations of the Palestinian people to achieve their legitimate rights and establish their independent national State on their national soil, on the basis of the two state solution, and in accordance with the resolutions of international legitimacy and established references.”

The leaders reiterated their call for a Middle East free of nuclear weapons and weapons of mass destruction, and support the right of states to possess peaceful nuclear energy.

“We urge them to fulfill their obligations and co-operate fully with the International Atomic Energy Agency and not to exceed the uranium enrichment rates required for the peaceful uses of nuclear energy,” the statement said.

The Summit also underlined the need for ending conflicts and establishing peace in Sudan, Syria, Yemen, Lebanon and Libya.

The Arab leaders expressed their full solidarity with Sudan in preserving its sovereignty, independence and territorial integrity and preserving the institutions of the Sudanese state.

They urged the Sudanese government and the Rapid Support Forces to engage seriously and effectively with initiatives aimed at settling the crisis.

The summit reaffirmed the need to end the Syrian crisis, in line with Security Council Resolution 2254, in a way that preserves Syria's security, sovereignty and territorial integrity, achieves the aspirations of its people, rids it of terrorism, and provides an environment for the dignified, safe and voluntary return of refugees.

The leaders rejected interference in Syria's internal affairs and any attempts to bring about demographic changes in it.

The Arab leaders renewed their firm support for the Presidential Leadership Council of Yemen, headed by Dr. Rashad Mohammed Al-Alimi. They pledged support for the efforts of the Yemeni government in its endeavor to achieve national reconciliation among all components of the Yemeni people, as well as Yemeni unity to achieve security and stability in the country.

 Courtesy: Saudi Gazette

Time to Revive OIC, Voice of Muslim Ummah

The Organization of Islamic Cooperation (OIC) is the second largest organization after the United Nations with a membership of 57 states spread over four continents. The Organization is the collective voice of the Muslim world. It endeavors to safeguard and protect the interests of the Muslim world in the spirit of promoting international peace and harmony among various people of the world.

The Organization was established upon a decision of the historical summit which took place in Rabat, Kingdom of Morocco on 12th Rajab 1389 Hijra, September 25, 1969 following the criminal arson of Al-Aqsa Mosque in occupied Jerusalem.

In 1970 the first ever meeting of Islamic Conference of Foreign Minister (ICFM) was held in Jeddah which decided to establish a permanent secretariat in Jeddah headed by the organization’s Secretary General. Hissein Brahim Taha is the 12th Secretary General who assumed the office in November 2021.

The first OIC Charter was adopted by the 3rd ICFM Session held in 1972. The Charter laid down the objectives and principles of the organization and fundamental purposes to strengthen the solidarity and cooperation among the Member States.

Over the last 40 years, the membership has grown from its founding members of 30 to 57 states. The Charter was amended to keep pace with the developments that have unraveled across the world. The present Charter of the OIC was adopted by the Eleventh Islamic Summit held in Dakar on 13-14 March 2008 to become the pillar of the OIC future Islamic action in line with the requirements of the 21st century.

The Organization has the singular honor to galvanize the Ummah into a unified body and have actively represented the Muslims by espousing all causes close to the hearts of over 1.5 billion Muslims of the world. The Organization has consultative and cooperative relations with the UN and other inter-governmental organizations to protect the vital interests of the Muslims and to work for the settlement of conflicts and disputes involving Member States. In safeguarding the true values of Islam and the Muslims, the organization has taken various steps to remove misperceptions and has strongly advocated elimination of discrimination against Muslims in all forms and manifestations.

The Member States of the OIC face many challenges in the 21st century and to address those challenges, the Third Extraordinary Session of the Islamic Summit held in Makkah in December 2005, laid down the blue print called the Ten-Year Program of Action. It successfully concluded with the close of 2015. A successor program for the next decade (2016-2025) has since then been adopted.

The new program OIC-2025 is anchored in the provisions of the OIC Charter and focuses on 18 priority areas with 107 goals.

The priority areas include issues of Peace and Security, Palestine and Al-Quds, Poverty Alleviation, Counter-terrorism, Investment and Finance, Food Security, Science and Technology, Climate Change and Sustainability, Moderation, Culture and Interfaith Harmony, Empowerment of Women, Joint Islamic Humanitarian Action, Human Rights and Good Governance, among others. 

Among the OIC’s key bodies: the Islamic Summit, the Council of Foreign Ministers (CFM), the General Secretariat, in addition to the Al-Quds Committee and three permanent committees concerned with science and technology, economy and trade, and information and culture.

There are also specialized organs under the banner of the OIC including the Islamic Development Bank and the Islamic Educational, Scientific and Cultural Organization, as well as subsidiary and affiliate organs that play a vital role in boosting cooperation in various fields among the OIC member states.

 

Big money for Trump by big US oil companies

A new analysis explores the possible payout if fossil fuel companies—who have already shown a willingness to put a price tag on the value of planet Earth—agree to the presumptive Republican nominee's election year "quid pro quo" deal.

The analysis reveals that the alleged US$ one billion election year "quid pro quo" offer that presumptive Republican nominee Donald Trump made to executives of major oil company's could, if they agreed to the deal, bank them a handsome profit.

According to the study by Friends of the Earth Action, first reported by The Guardian on Thursday, the "remarkably blunt and transactional" offer from Trump—in which US$ one billion in campaign funding put together by the nation's major oil companies would be repaid upon his election with massive deregulation of the oil and gas sector as well as tax relief for the industry—would yield a major windfall for those same corporations, including an estimated US$110 billion from the tax breaks alone.

Republicans in Congress last year confirmed that if Trump wins back the White House and the GOP resume control of both chambers, they will move aggressively to make the Republican's 2017 tax cuts, which largely benefited the wealthy and corporations, permanent. As some of the most profitable companies in the US, oil and gas companies stand to benefit greatly from that outcome.

In Florida last month, not long before his meeting with oil executives, Trump told a different crowd of "rich as hell" supporters gathered at Mar-a-Lago: "We're gonna give you tax cuts, we're gonna pay of our debt."

The problem with the second half of that claim is presented in a recent CBO report which found that another wave of tax cuts like those passed by the GOP in 2017 would skyrocket the national debt by an estimated US$4.6 trillion over the next ten years.

 

Earlier this week, House Democrats, led by Oversight Committee Ranking Member Rep. Jamie Raskin, launched a probe into the "quid pro quo" allegations between Trump and Big Oil, including letters to company executives believed to have been in attendance.

The blatant nature of Trump's corrupt intent, according to some political observers, is an opportunity that Democrats and champions of climate action and other progressive causes should not miss.

Writing about the circumstances in The New Yorker on Wednesday, journalist and veteran climate activist Bill McKibben argued that the stakes of this election are made plain in what Trump has offered the fossil fuel industry in exchange for its financial backing.

"Trump's reported billion-dollar offer to fossil-fuel executives shows that this is the key year to save the planet," McKibben writes.

"Given four years to finish the implementation of the Inflation Reduction Act, a second-term Biden Administration might finally be able to break the hold of fossil fuel political influence," his essay explains. "Another term of Trump, however—and with all that it means for undercutting global efforts at climate regulation, as well—offers an entirely plausible and entirely opposite outcome: climate chaos combined with continued fossil-fuel dependence."

What's true, according to McKibben, is that the fossil fuel industry "might well decide that defeating Biden in November is worth a lot of money." Citing recent profits by Chevron of US$21 billion and ExxonMobil's US$36 billion, he said the oil giants will "definitely give Trump something, and the return on investment on that donation—if successful—would be better than the luckiest well they ever hit."

Courtesy: Common Dreams

Wednesday, 15 May 2024

US military pier moving towards Gaza

According to Reuters the US military has started moving a pier towards the Gaza coast, a US official said on Wednesday, one of the last steps before the launch of a maritime port promised by President Joe Biden to speed the flow of humanitarian aid to Palestinians.

The US military opted to pre-assemble the maritime pier at Israeli port of Ashdod earlier this month due to weather conditions at the Gaza site where it will now be installed.

Officials hope the pier can be anchored to the coast of Gaza and aid can start flowing in the coming days.

"Earlier today, components of the temporary pier ... along with military vessels involved in its construction, began moving from the Port of Ashdod towards Gaza, where it will be anchored to the beach to assist in the delivery of international humanitarian aid," a US official said.

A British shipment of nearly 100 tons of aid has left Cyprus bound for a new temporary pier in Gaza, the British Foreign Office said on Wednesday.

Israel launched a relentless assault on Gaza, killing more than 35,000 Palestinians, local health authorities say, in a bombardment that has reduced much of the enclave to a wasteland and triggered UN warnings of looming famine.

Over time, the civilian toll from the Israeli offensive has triggered global protests and strained relations with Washington, Israel's biggest backer.

Israel has sought to demonstrate it is not blocking aid to Gaza. Although the US officials and aid groups say some progress has been made, they warn it is insufficient.

Dan Dieckhaus, the response director at the US Agency for International Development, told reporters earlier on Wednesday Israel still has more work to do to address concerns about the killing of aid workers in Gaza.

"Overall we are still not satisfied. And we won't be satisfied as long as we continue to see aid worker deaths and injuries," Dieckhaus said.

 

76th Anniversary of Nakba

The Organization of Islamic Cooperation (OIC) issued a statement on the 76th anniversary of the Nakba when Palestinians were violently expelled from their lands to make way for the formation of Israel.

The statement said the Nakba continues today through crimes of murder, destruction, forced displacement, and genocide as a result of the continuing Israeli aggression against the Palestinian people, Al Jazeera reported. 

“The OIC reaffirms the responsibility of the international community towards the necessity of putting an end to the Israeli occupation and activating international justice mechanisms to hold Israel, the occupying power, accountable for the crimes it has committed against humanity, and to rectify the historical injustice that continues to befall the Palestinian people,” the statement added.