The Abacus Prompt - May 2017 Issue

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Stock Market

  • The KSE-100 index increased 3.9% during May, closing at 50,592 pts Graph May 17
  • Average daily turnover increased 40% MoM to ~337 mn shares
  • Foreign investment (as measured by FIPI activity) recorded a net sell of USD 141 mn in May
  • Individuals and Mutual Funds were net buyers of USD 73 mn and USD 47 mn, respectively, during May
  • Top performing sectors during the month were Textiles, Engineering, Oil & Gas Exploration, Oil & Gas Marketing, and Refinery; while Automobile Assemblers, Cement, Fertilizer, Paper & Board and Power Generation & Distribution were negative contributors

Currency and Commodity MarketsCurrency May 2017

  • The PKR depreciated 0.19% MoM against the USD, appreciated 0.48% MoM against the GBP, and depreciated 3.03% MoM against the EUR
  • Domestic Gold prices decreased by 1.50% MoM, while domestic Silver prices decreased by 1.31% MoM
  • WTI Crude decreased by 2.05% MoM. Domestic HSD and Motor Spirit prices –set on fortnightly basis– remained unchanged on MoM basis
  • Cotton (KCA) prices increased by 1.49% MoM to PKR 6,800/maund
  • Urea prices remained stable MoM at PKR 1,365/bag
  • Cement dispatches were recorded at 3.71 mn tons, up 3.70% MoM, while prices declined by around 0.92% MoM to ~ PKR 539/ bag

Macroeconomic Profile

  • The SBP kept the policy rate unchanged at 5.75% in May
  • Forex Reserves increased by USD 0.77 bn to USD 21.77 bn Currency May 2017
  • CPI Inflation was recorded at 5.00% YoY
  • Exports decreased by 9.86% MoM to USD 1.63 bn and imports increased by 1.88% MoM to USD 5.09 bn; resultantly, the trade deficit increased by 8.52% MoM to USD 3.47 bn
  • Foreign remittances increased by 21.37% MoM to USD 1.87 bn
  • Federal tax collection was recorded at around PKR 346.0 bn
  • Net FDI was recorded at USD 132 mn in April compared to USD 297 mn in Mar

News Highlights

  • PSX was upgraded to the MSCI Emerging Markets status
  • The Belt and Road Forum for International Cooperation was held from May 14-15 in Beijing
  • PSX approved the sale of remaining 20 percent shares of the bourse through initial public offering
  • Pakistan and China signed six MoUs worth USD 500 million under CPEC
  • Ittefaq Iron Industries Limited conducted an IPO on the PSX
  • Hyundai and Al-Haj Group launched a JV to manufacture heavy commercial vehicles in Pakistan
  • Emmanuel Macron was elected as the new president of France