The Abacus Prompt - April 2017 Issue

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Stock Market

  • The KSE-100 index increased 2.2% during April, closing at 49,301 pts Graph May 17
  • Average daily turnover decreased 2.4% MoM to ~239 mn shares
  • Foreign investment (as measured by FIPI activity) recorded a net sell of USD 36 mn in April
  • Mutual Funds were net buyers during April of USD 108 mn, while Individuals and Banks were net sellers of USD 53 mn and USD 20 mn, respectively
  • Top performing sectors during the month were Automobile Assemblers, Cement, Engineering, Oil & Gas Exploration, Oil & Gas Marketing, Glass & Ceramics and Refinery; while Fertilizer, Banks, Textile Composite, Paper & Board and Power Generation & Distribution were negative contributors

Currency and Commodity MarketsCurrency May 2017

  • The PKR appreciated by 0.14% MoM against the USD, depreciated 3.30% MoM against the GBP and 1.64% MoM against the EUR
  • Domestic Gold prices decreased by 0.58% MoM, while domestic Silver prices decreased by 1.40% MoM
  • WTI Crude decreased by 2.51% MoM. Domestic HSD and Motor Spirit prices –set on fortnightly basis– increased by 1.22% and 1.37% MoM, respectively
  • Cotton (KCA) prices decreased by 0.74% MoM to PKR 6,700/maund
  • Urea prices decreased 0.29% MoM to PKR 1,365/bag
  • Cement dispatches were recorded at 3.58 mn tons, down 9.70% MoM, while prices declined by around 0.80% MoM to ~ PKR 544/ bag

Macroeconomic Profile

  • The SBP kept the policy rate unchanged at 5.75% in Mar
  • Forex Reserves decreased by USD 0.57 bn to USD 21.01 bn Currency May 2017
  • CPI Inflation was recorded at 4.80% YoY
  • Exports increased by 0.22% MoM to USD 1.81 bn and imports decreased by 0.22% MoM to USD 5.00 bn; resultantly, the trade deficit decreased by 0.47% MoM to USD 3.19 bn
  • Foreign remittances decreased by 9.19% MoM to USD 1.54 bn
  • Federal tax collection was recorded at around PKR 259.0 bn
  • Net FDI was recorded at USD 132 mn in April compared to USD 297 mn in Mar

News Highlights

  • Supreme Court of Pakistan passed its verdict on the Panama Case, stipulating formation of a JIT for further investigations
  • GoP decided to issue a 10-year, USD 350 mn international bond
  • Board of Investment finalized an incentive package to facilitate relocation of industries to the 16 special economic zones
  • PSX signed a MoU with SMEDA and Islamabad Chamber of Commerce to encourage SMEs’ access to equity finance
  • Amreli Steels announced increase in production capacity of re-bars to 750,000 tonnes per annum over the next two years
  • Saudi Arabia raised USD 9 billion in its first global Sukuk issue