The Abacus Prompt - January 2018 Issue

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Stock Market

  • KSE-100 index closed at 44,049 pts, increasing 8.84% Graph January 18
  • The average daily volume increased by 58.1% MoM to ~239 mn shares
  • Foreigners reported a net inflow of USD 85.7 mn, a substantial increase compared to previous month which had a net outflow of 4.3 mn
  • The market is expected to be bullish, however gains may be more tepid now given the swift pace of recovery

Currency and Commodity MarketsCurrency January 2018

  • The Dollar Index decreased by 2.98% MoM in January to close at 89.13
  • The GBP gained some momentum against the USD
  • The GBP, EUR and CNY appreciated 4.81%, 3.28% and 3.35% MoM, against the PKR, respectively. However, USD, SAR and AED depreciated by 0.10%%, 0.11% and 0.10% MoM respectively.
  • Local Gold prices increased by 1.07% MoM, following opposite trend to international gold prices.
  • WTI crude oil price increased nearly 13.28% MoM
  • Total cement dispatches were recorded at 4.08 mn tons in January, up 9.46% MoM and up 31.83% YoY
  • Cotton prices increased by about 5.60% MoM
  • Urea prices remained stable (PKR 1,414 per bag
  • The prices of High Speed Diesel and Motor Spirit increased by 6.58% and 3.66%.

Economy of Pakistan

  • The SBP increased the policy rate by 0.25% to reach 6.00%
  • Forex reserves decreased by USD 0.823 bn standing at USD 19.35 bn in January
  • CPI was recorded at 4.4% down from 4.6% recorded in the previous month
  • Pakistan’s exports in Jan were recorded at USD 2.11 bn, higher 4.76% MoM. Imports increased to USD 4.87 bn higher 13.19% MoM. Consequently, the trade deficit was recorded at around USD 2.76 bn, higher 20.60% MoM
  • Foreign remittances in Jan amounted to USD 1.639 bn, down 4.88% MoM and up by 10.17% YoY
  • The FBR reported provisional revenue collection at around PKR 273 bn in January, 21.3% higher YoY

News Highlights

  • Pakistan called in the US Ambassador and held an emergency meeting of its national security team in light of President Donald Trump’s tweet accusing the country of “lies and deceit” in a tweet.
  • Small and Medium Enterprises Development Authority (SMEDA) CEO Sher Ayub Khan said that National Business Development Programme (NBDP) would be launched by SMEDA this year that would mobilize an investment worth PKR 8 bn.
  • The government has increased development funds under Federal Public Sector Development Program (PSDP) during previous four years by 86 per cent from PKR 540 billion in the year 2013-14 to PKR 1001 billion in current fiscal year to boost socio-economic development.