The Abacus Prompt - Aug 2016 Issue

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Stock Market

  • The KSE-100 index increased by 0.71% MoM, closing at 39,810 pts
  • Average daily turnover increased 39% MoM to ~258 mn shares
  • Foreign investment (as measured by FIPI activity) recorded a net sell of USD 20.39 mn in Aug
  • Mutual funds and Individuals were net buyers of USD 13.5 mn and 5.5 mn respectively, whereas Banks were net sellers of USD 4.8 mn
  • Top growing sectors during the month were the Automobiles (11.3% MoM), Oil & Gas (3.2%) and Banking (2.8% MoM) sectors in Aug

Currency and Commodity Markets

  • The PKR appreciated by 0.07% MoM against the USD, 0.67% MoM against the GBP, and 0.33% MoM against the EUR during Aug
  • Domestic Gold prices decreased 1.52% MoM. Similarly, domestic silver prices decreased 5.13%
  • WTI Crude increased 11.58% MoM. Domestic HSD and Motor Spirit prices –set during the first of Aug – remained unchanged
  • Cotton (KCA) prices increased 3.10% MoM to PKR 6,650/maund
  • Urea prices remained unchanged at PKR 1,446/bag
  • Cement dispatches were 3.59 mn tons, up 53.73% MoM and up 16.75% YoY. Prices remained unchanged at about PKR 513/50kg bag

Macroeconomic Profile

  • The policy rate remained unchanged at 5.75%
  • Forex Reserves decreased by USD 0.02 bn MoM to USD 22.98 bn
  • CPI Inflation was recorded at 3.60% YoY
  • Exports increased by 12.10% MoM to USD 1.66 bn and imports increased by 21.76%  MoM to USD 4.33 bn; resultantly, the trade deficit widened by 28.63% MoM to USD 2.67 bn
  • Foreign remittances increased by 32.53% MoM to reach USD 1.76 bn 
  • Federal tax collection was recorded at about PKR 210.0 bn
  • FDI was recorded at USD 48.3 mn, down 57.5% YoY

News Highlights

  • Pakistan and IMF completed the 12th and final review of USD 6.4 bn bailout program
  • Finance Minister Dar announced that from now on, CGT will be applied to properties held up to 3 years, revised downwards from the previous 5 years
  • Federal and provincial governments finally agreed on a common National Health Vision (NHV)
  • At least 70 people were killed and over 100 others wounded in a suicide bombing at the emergency ward of Quetta’s Civil Hospital
  • In a referendum, the Thai people voted to accept a military-backed constitution of the reigning military junta
  • Brazil’s senate voted to impeach President Dilma Rouseff with an overwhelming majority; Michel Temer replaced her as President
  • President Erdogan launched Turkey into the Syrian conflict and against the Islamic State, supporting units of the Free Syrian Army