The Abacus Prompt - December 2017 Issue

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Stock Market

  • KSE-100 index closed at 40,471 pts, increasing 1.15% Graph December 17
  • The average daily volume increased by 140.6% MoM to ~151.37 mn shares
  • Foreigners reported a net sell of USD 4.3 mn, a 92% decrease compared to previous month
  • The market is expected to be bullish, albeit volatile, up to the election period

Currency and Commodity MarketsCurrency December 2017

  • The Dollar Index decreased by 1.00% MoM in Dec to close at 92.12
  • The GBP gained some momentum against the USD
  • The USD, GBP and EUR appreciated 5.12%, 5.25% and 6.16% MoM, against the PKR, respectively
  • Local Gold prices increased by 3.88% MoM, in tandem with international gold prices
  • WTI crude oil price increased nearly 5.26% MoM
  • Total cement dispatches were recorded at 3.73 mn tons in Dec, down 5.38% MoM and up 4.94% YoY
  • Cotton prices increased by about 5.93% MoM
  • Urea prices remained stable (PKR 1,408 per bag

Economy of Pakistan

  • The SBP kept the policy rate unchanged at 5.75%
  • Forex reserves increased by USD 1.38 bn standing at USD 20.15 bn in Dec
  • CPI was recorded at 4.60% YoY, up from 4.00% recorded in the previous month
  • Pakistan’s exports in Dec were recorded at USD 1.98 bn, higher 0.15% MoM. Imports increased to USD 4.91 bn higher .24% MoM. Consequently, the trade deficit was recorded at around USD 2.93 bn, higher .31% MoM
  • Foreign remittances in Dec amounted to USD 1.72 bn, up 9.32% MoM and 9.05% YoY and stood at stood at USD 9.74 bn for FY18
  • The FBR reported provisional revenue collection at around PKR 417 bn in Dec, 14.9% higher YoY

News Highlights

  • Supreme Court ruled in favour of PTI Chairman Imran Khan and against PTI General Secretary Jahangir Khan Tareen in disqualification case
  • World Bank approved a loan of USD 825mn to help modernize the national power transmission system and improve health and education
  • Oil prices rose with Brent closing at USD 66.87/bbl due to unrest in Middle East and damage to pipelines in the North Sea and Iran
  • Nawaz Sharif named his brother, Shehbaz Sharif, as the next PML-N candidate for Prime Minister for the 2018 general elections
  • The Senate passed the delimitation of constituencies bill, increasing investor confidence; a pivotal step towards timely elections