Karachi: Trading in 3 and 5-year fixed and variable rental rate instruments on the Pakistan Stock Exchange will resume on July 24, 2024, following a temporary suspension. This decision relates to the Pakistan Stock Exchange Notice# PSX/N-635 issued on July 8, 2024, concerning the suspension due to the first rental payment of the Government of Pakistan Ijarah Sukuk.

Trading in instruments dated January 24, 2024, will recommence under revised profit rates. Specifically, the 3-year Variable Rental Rate (VRR) instruments (code P03VRR240127) will see an updated net profit rate of 19.8339%, adjusted from the current 21.1101%, reflecting a change due to the latest weighted average yield of 19.6839% and a spread of 0.15% from the primary auction on January 23, 2024. Similarly, the 5-year VRR instruments (code P05VRR240129) will be adjusted to a new profit rate of 19.9639% from the existing 21.2401%, also based on the same yield but with a slightly higher spread of 0.28%.

According to information available from the Pakistan Stock Exchange (PSX), these adjustments are crucial for market participants to note as they involve significant changes in the potential returns on these government-backed securities.

All parties involved in trading these instruments are encouraged to update their strategies and portfolios accordingly to align with the new profit rates taking effect at the end of this month.