The Abacus Prompt - November 2016 Issue

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Stock Market

  • The KSE-100 index increased by 6.80% MoM, closing at 42,662 pts
  • Average daily turnover increased 9.2% MoM to ~487 mn shares
  • Foreign investment (as measured by FIPI activity) recorded a net sell of USD 117 mn in Nov
  • Mutual Funds and individuals were largely net buyers during Nov; of USD 78.8 mn and USD 68.4 mn respectively, whereas Banks were net sellers of USD 46.8 mn
  • Top growing sectors during the month were Oil, Cement and Textile sectors whereas Power and Generation was the major loser

Currency and Commodity Markets

  • The PKR depreciated by 0.07% MoM against the USD, but gained 2.34% MoM against the GBP and 3.45% MoM against the EUR
  • Domestic Gold prices decreased by 3.47% MoM. Domestic silver prices gained 6.67%
  • WTI Crude increased by 5.94% MoM. Domestic HSD and Motor Spirit prices –set during the first of Nov – remained unchanged
  • Cotton (KCA) prices increased 6.78% MoM to PKR 6,300/maund
  • Urea prices remained unchanged at PKR 1,446/bag
  • Cement dispatches were 3.75 mn tons, up 6.30% MoM. Prices remained unchanged at about PKR 553/ bag

Macroeconomic Profile

  • The SBP kept the policy rate unchanged at 5.75%
  • Forex Reserves decreased by USD 0.85 bn MoM to USD 23.34 bn
  • CPI Inflation was recorded at 3.80% YoY
  • Exports increased by 0.34% MoM to USD 1.76 bn and imports increased by 5.41% MoM to USD 4.23 bn; resultantly, the trade deficit decreased by 9.35% MoM to USD 2.47 bn
  • Foreign remittances increased by 3.59% MoM to reach USD 1.62 bn
  • Federal tax collection was recorded at about PKR 240.0 bn
  • FDI was recorded at USD 87.2 mn, up from USD 67 mn last month but down 40.6% YoY

News Highlights

  • The Supreme Court formed a five member judicial commission to probe the Panama leak allegations after reviewing the ToR’s submitted by various stakeholders. Resultantly, Imran Khan called off the planned sit-in against the govt. in Islamabad.
  • Gen Qamar Bajwa was appointed as the 16th Chief of Army Staff of the Pakistan army whereas General Zubair Mahmood Hayat was appointed the Chairman Joint Chief of Staff Committee.
  • Justice (R) Saeed uz Zaman was appointed Governor of Sindh by President Mamnoon Hussain.
  • Donald J. Trump became the 45th President-elect of the United States of America by securing the majority of electoral votes
  • OPEC agreed to its first production cuts in eight years, leading to a sharp rise in global oil prices. Notably, Russia – not an OPEC member – also agreed to join the production cut.