The Abacus Prompt - April 2016 Issue

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Stock Market

  • The KSE-100 index increased by 4.77% MoM, closing at 34,719 pts
  • Average daily turnover increased ~61% MoM to 235 mn shares,  and average traded value increased ~35% MoM to USD 97.6  mn
  • Net FIPI outflows were recorded at ~USD 18 mn, higher ~59% MoM
  • Top growing sectors during the month were the E&P (13% MoM), banking (5 % MoM) and textile (6.5% MoM) sectors

Currency and Commodity Markets

  • The PKR depreciated by 0.58% MoM against the USD, 1.67% MoM against the GBP and 2.85% MoM against the EUR during April
  • Domestic Gold prices increased 0.30% MoM, and similarly Silver prices increased 1.45% MoM
  • WTI Crude increased by 24.14% MoM. Domestic HSD and Motor Spirit prices -reflecting lower oil prices in Mar- increased marginally by 1.97% and 2.39% MoM respectively
  • Cotton (KCA) prices increased 5.66% MoM to PKR 5,600/maund
  • Urea prices increased about 0.3% MoM to PKR 1,856/bag
  • Cement dispatches were 3.55 mn tons, down 0.90% MoM and up 7.81% YoY. Prices increased marginally by 0.28% to close at PKR 513.18/50kg

Macroeconomic Profile

  • The policy rate remained unchanged at 6%
  • Forex Reserves decreased by USD 0.10 bn MoM to USD 20.79 bn
  • CPI Inflation was recorded at 4.20% YoY
  • Exports decreased by 1.15% MoM to USD 1.72 bn and imports increased by 8.51% MoM to USD 3.87 bn; resultantly, the trade deficit widened by 17.71% MoM to USD 2.15 bn
  • Foreign remittances decreased by 3.17% MoM to reach USD 1.66 bn 
  • Federal tax collection was recorded at about PKR 242 bn in April
  • FDI was recorded at USD 58.9 mn, down from USD 161.7 mn in Mar

News Highlights

  • The Panamagte scandal identified a large of number of offshore companies held by affluent persons. Many Pakistani’s were identified including PM Nawaz Sharif’s three children; subsequently opposition pressure forced the PM to investigate the claims of the leaks
  • The World Bank approved a package of assistance worth USD 1 bn to support Pakistan’s economic reforms
  • The Parliament passed "The PIA Corporation (Conversion) Bill, 2016", converting PIA into a public limited company
  • The FBR proposed a reform of the customs tariff that includes reducing the number of maximum tariff slabs from five to four and the maximum general slab duty to 20% from 25%.
  • Oil producers failed to agree on a deal to freeze output after a Saudi Arabia – Iran standoff
  • The Obama Administration conveyed to Pakistan that it was unable to provide Foreign Military Funds (FMF) for purchase of F-16s