The Abacus Prompt - March 2017 Issue

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Stock Market

  • The KSE-100 index decreased 1.7% during Mar, closing at 48,156 pts Graph Feb 17
  • Average daily turnover decreased 30% MoM to ~245 mn shares
  • Foreign investment (as measured by FIPI activity) recorded a net sell of USD 23 mn in Mar
  • Companies were largely net buyers during Mar of USD 30 mn, while Individuals were net sellers of USD 32 mn
  • Top performing sectors during the month were Automobile Assemblers, Chemicals, Engineering, Oil & Gas Marketing, Paper & Board, Refinery, and Transportation stocks; while Fertilizer, E&P, and Power Generation & Distribution were negative contributors

Currency and Commodity MarketsCurrency Jan 2017

  • The PKR depreciated by 0.24% MoM against the USD, 0.68% MoM against the GBP and 1.07% MoM against the EUR
  • Domestic Gold prices decreased by 0.28% MoM, while domestic Silver prices decreased by 2.58%
  • WTI Crude decreased by 6.31% MoM. Domestic HSD and Motor Spirit prices –set on fortnightly basis– increased by 1.89% and 2.40% MoM, respectively
  • Cotton (KCA) prices increased by 1.50% MoM to PKR 6,750/maund
  • Urea prices increased 0.81% MoM to PKR 1,369/bag
  • Cement dispatches were recorded at 3.96 mn tons, up 16.0% MoM, while prices declined by around 1.0% MoM to ~ PKR 548/ bag

Macroeconomic Profile

  • The SBP kept the policy rate unchanged at 5.75% in Mar
  • Forex Reserves decreased by USD 0.52 bn to USD 21.55 bn
  • CPI Inflation was recorded at 4.90% YoY
  • Exports increased by 9.95% MoM to USD 1.80 bn and imports increased by 13.35% MoM to USD 5.01 bn; resultantly, the trade deficit increased by 15.35% MoM to USD 3.21 bn
  • Foreign remittances increased by 19.58% MoM to USD 1.69 bn
  • Federal tax collection was recorded at around PKR 343.0 bn
  • Net FDI was recorded at USD 123 mn in Feb compared to USD 81 mn in Jan, primarily on account of inflows from France and China

News Highlights

  • Pakistan and Switzerland signed an agreement for avoidance of double taxation on income and information sharing on tax evaders
  • Pakistan’s sixth national population and housing census commenced on March 15, 2017
  • Parliament passed the 28th constitutional amendment bill for reinstatement of military courts for a two year period
  • TPL Life Insurance announced an IPO for 40 million ordinary shares to be conducted before end-FY 2017
  • Nishat Mills announced sale of 40 percent stake in Hyundai Nishat Motors to Sojitz Corporation of Japan
  • Amazon announced acquisition of Dubai-based Souq.com, the largest online retailer in the Middle East