The Abacus Prompt - September 2017 Issue

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Stock Market

  • The KSE-100 index increased by 2.92% MoM, closing at 42,409 pts Graph September 17
  • Average daily turnover increased by 7.03% MoM to ~153 mn shares
  • Foreign investment (as measured by FIPI activity) recorded a net buy of USD 28 mn in Sep
  • This was primarily on account of inclusion of five Pakistani stocks MCB, BAFL, SNGP, THAL and MTL in the FTSE Global Indices
  • Top growing sectors during the month were Fertilizer, Food & Consumer Products and Pharmaceuticals whereas Cement and Autos was the major losers

Currency and Commodity MarketsCurrency September 2017

  • PKR depreciated by 0.11% MoM against the USD, 4.09% MoM against GBP but gained 0.58% MoM against the EUR
  • Domestic gold prices increased by 0.15% MoM. While silver prices decreased by 5.74% MoM
  • WTI Crude increased by 9.40% MoM. Domestic Motor Spirit prices increased by 2.88% while HSD prices remained unchanged respectively on a MoM basis
  • Cotton (KCA) prices increased by 0.84% MoM to PKR 6,000/maund
  • Urea prices increased by 0.38% leading to a new price at PKR 1,326/bag
  • Total cement dispatches during Sep 2017 were recorded at 3.2 mn tonnes, down 15.03% MoM; despite registering a growth of 4.61% on a YoY basis. Prices decreased by an estimated 1.05% MoM

Macroeconomic Profile

  • The SBP kept the policy rate unchanged at 5.75%
  • Forex Reserves decreased by USD 0.638 bn MoM to USD 19.76 bn Keystat September 2017
  • CPI Inflation was recorded at 3.40% YoY
  • Exports decreased by 10.24% MoM to USD 1.68 bn and imports decreased by 9.67% MoM to USD 4.473 bn; resulting in the trade deficit decreasing by 9.33% MoM to USD 2.80 bn
  • Foreign remittances decreased by 33.8% MoM to reach USD 1.29 bn
  • Federal tax collection was recorded at about PKR 316.0 bn in Sep

News Highlights

  • Despite rife rumors to the contrary, Government officials reiterated their position against devaluation of Pak Rupee in the near future and ruled out any fresh IMF bailout in the near term
  • Minister of State for Ports & Shipping announced that China Communication Construction Co shall give an interest free loan of PKR 15 billion for building road & rail infrastructure in Gawadar
  • ADB approved USD 800 million multi-tranche financing facility to Pakistan to help enhance regional connectivity
  • PM Abbasi, while addressing his first UN General Assembly’s session, unequivocally reiterated Pakistan’s stance on the Kashmir issue, Pakistan’s sacrifices and against being made an scapegoat
  • HBL’s New York branch was fined USD 225 mn by the New York State Department of Financial Services and shut down for compliance failures