The Abacus Prompt - December 2015 Issue

Stock Market

  • The KSE-100 index declined by 5.76% MoM, closing at 32,255
  • Average daily turnover decreased 1.44% MoM to ~171 mn shares, while average daily traded value decreased ~16% MoM to USD 71 mn
  • FDI was recorded at USD 157.3 mn in Nov, rising by ~16.86% MoM and 354.62% YoY
  • Net FIPI outflows were recorded at USD 53.1 mn, rising 9.96% MoM
  • The only sector to post positive returns during the month was Financial Services, growing 2.9% MoM             

Currency and Commodity Markets

  • The PKR declined marginally by 0.07% MoM against USD to close at 105.55, appreciated 2.44% against the GBP to close at 158.81, and rose almost 4% against the EUR to close at 111.51
  • Domestic Gold prices decreased ~5% MoM to PKR 44,450/tola; while Silver prices decreased 9.59% to PKR 660/tola
  • WTI Crude decreased ~10% in Nov. Domestic HSD and Motor Spirit prices remained unchanged at 83.70 and 76.26 PKR/ltr respectively. HSD sales decreased 2% MoM, and Motor Spirit sales decreased 22% MoM.
  • Cotton (KCA) prices decreased 2.73% MoM to PKR 5,350/maund
  • Urea prices decreased ~2% MoM to PKR 1,930/bag
  • Cement dispatches were 3.38 mn tons, higher 8.9% MoM and 11.5% YoY. Prices declined marginally 0.06%          

Macroeconomic Profile

  • The SBP kept the policy rate unchanged at 6%
  • Forex Reserves declined by USD 0.03 bn in Nov to reach USD 19.82 bn
  • CPI Inflation was recorded at 2.7%
  • Exports declined by 4% MoM to USD 1.66 bn and imports decreased 0.25% MoM to USD 3.92 bn; the trade deficit increased by over 2.73% MoM to USD 2.26 bn
  • Foreign remittances recorded an increase of 3.25% MoM and 18.4% YoY to reach USD 1.59 bn                                          

News Highlights

  • The GoP approved a PKR 40 bn mini-budget levying regulatory duties and increasing customs duties on hundreds of items
  • Phase II of the Local Govt. Elections took place in Punjab and Sindh; PML (N) candidates won a majority in Punjab, and the PPP won in Sindh
  • A PKR 13 per kg export subsidy was provided to sugar mill owners (in Punjab) for the export of 500,000 MT of sugar
  • The IMF and Pakistan reached an agreement for a USD 502 mn tranche after completion of the ninth review under the EFF
  • The FBR increased the sales tax on Motor Spirit from 22% to 24% from Dec 1, 2015. The sales tax on HSD has been reduced from 47.5% to 45.5%
  • Mobilink’s parent company VimpelCom announced the acquisition of Warid Telecom, Pakistan’s first mobile telecom acquisition
  • The NA adopted the Companies (Amendment) Bill 2015, allowing listed companies to either cancel repurchased shares or retain them as treasury