The Abacus Prompt - August 2017 Issue

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Stock Market

  • The KSE-100 index closed at 41,206 pts, decreasing 10.44% MoM Graph-Aug17
  • Average daily turnover decreased 18% MoM to ~143 mn shares
  • Foreigners reported a net sell of USD 80.4 mn in Aug
  • Companies were major buyers during August, reporting a net buy worth USD 28 mn, followed by Banks with USD 25.4 mn.
  • Textile Weaving, Pharmaceuticals and Cable and Electric sector stocks were key negative contributors.

Currency and Commodity MarketsCurrency-Aug17

  • The PKR appreciated 0.15% MoM against the USD, 2.41% MoM against the GBP, and depreciated 0.59% MoM against the EUR
  • Domestic Gold prices increased by over 2% MoM, while domestic Silver prices increased by nearly 5% MoM
  • WTI Crude fell by nearly 6% MoM. Domestic HSD and Motor Spirit prices declined by 3.13% and 2.52% respectively on a MoM basis
  • Cotton (KCA) prices decreased by around 6.3% MoM to PKR 5,950/maund
  • Urea prices increased around 0.23% MoM at PKR 1,321/bag
  • Total cement dispatches during Aug 2017 were recorded at 3.98 mn tonnes, up 17.6% MoM and 10.9% YoY. Prices decreased nearly 0.40% MoM.

Macroeconomic Profile

  • The SBP remained unchanged at 5.75%
  • Forex Reserves increased by USD 0.11 bn to USD 20.39 bn Keystat-Aug17
  • CPI Inflation was recorded at 3.40% YoY
  • Exports increased by 14.4% MoM to USD 1.87 bn and imports increased by 2.42% MoM to USD 4.95 bn; resultantly, the trade deficit decreased by 3.7% MoM to USD 3.09 bn.
  • Foreign remittances increased by 26.6% MoM to USD 1.95 bn
  • The FBR reported provisional revenue collection at around PKR 249 bn in August 2017
  • Net FDI was recorded at USD 234.5 mn in Aug 2017, higher 147.9% YoY.

News Highlights

  • PML-N's Shahid Khaqan Abbasi was sworn in as prime minister of Pakistan, succeeding Nawaz Sharif after being elected by lawmakers in the NA, bagging 221 votes.
  • A USD 629 mn fine on HBL was imposed by the New York State Department of Financial Services, the largest ever on a Pakistani Bank, on account of money laundering charges. HBL agreed to settle out of court for a fine worth USD 225 mn.
  • The Ministry of Finance appointed Javaid Jehangir, a former grade-22 officer, as Auditor General of Pakistan
  • North Korea fired a intermediate-range ballistic missile over Japan, prompting a show of airpower by the US and South Korea