The Abacus Prompt - February 2017 Issue

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Stock Market

  • The KSE-100 index decreased 1.9% during Feb, closing at 48,534 pts Graph Feb 17
  • Average daily turnover decreased 21% MoM to ~348 mn shares
  • Foreign investment (as measured by FIPI activity) recorded a net sell of USD 30 mn in Feb
  • Mutual Funds and Insurance Companies were largely net buyers during Feb of USD 48 mn and USD 16 mn respectively, while Individuals were net sellers of USD 43 mn
  • Top growing sectors during the month were Cement, Oil & Gas Marketing, Paper & Board, and Textile Composite; whereas Commercial Banks, Oil & Gas Exploration, Automobile Assemblers, Chemicals, Pharmaceuticals, and Power Generation & Distribution were negative contributors

Currency and Commodity MarketsCurrency Jan 2017

  • The PKR appreciated by 0.29% MoM against the USD, 0.96% MoM against the GBP and 1.35% MoM against the EUR
  • Domestic Gold prices increased by 2.59% MoM, while domestic Silver prices increased 1.38%
  • WTI Crude increased by 2.27% MoM. Domestic HSD and Motor Spirit prices –set on fortnightly basis– increased by 4.22% and 4.78% MoM, respectively
  • Cotton (KCA) prices were stable MoM at PKR 6,650/maund
  • Urea prices decreased 5.23% MoM to PKR 1,358/bag
  • Cement dispatches were recorded at 3.40 mn tons, up 10.03% MoM, while prices decreased 0.08% MoM to around PKR 553/ bag

Macroeconomic Profile

  • The SBP kept the policy rate unchanged at 5.75% in Jan
  • Forex Reserves decreased by USD 0.42 bn to USD 21.82 bn
  • CPI Inflation was recorded at 4.20% YoY
  • Exports decreased by 7.98% MoM to USD 1.64 bn and imports decreased by 6.16% MoM to USD 4.45 bn; resultantly, the trade deficit decreased by 5.07% MoM to USD 2.81 bn
  • Foreign remittances decreased by 4.76% MoM to USD 1.42 bn
  • Federal tax collection was recorded at around PKR 227.0 bn
  • FDI was recorded at USD 81 mn in Jan 2017, compared to USD 595 mn in Dec 2016 owing to a one-off inflow of USD 460 mn during Dec

News Highlights

  • Board of Investment established a CPEC-SEZ Cell to facilitate matters relating to CEPC and Special Economic Zones
  • PSX announced an IPO for 20 percent of the bourse to be completed by end-June 2017
  • National Tariff Commission imposed definitive anti-dumping duties on imports of galvanized steel coils and sheets
  • Daewoo Express announced a PKR 4 billion IPO to be conducted in June 2017
  • Hyundai announced setup of a car assembly plant with Nishat Mills
  • British parliament passed the Brexit bill by majority vote