The previous week saw the bull-run continue with the KSE-100 index growing by 1,140pts, comfortably breaking past the 37k mark. Domestic participation continued to remain the driving force behind the index’s relatively sustained rally. Particular interest was witnessed in the cyclical industries with cements and steels taking charge. We believe additional details regarding the construction package likely compelled investors to take notice of the potentially optimistic outlook of said sectors.
Market View: The KSE100 ended the earlier week up by 1,140 points, to close at 37,331 points. The market was able to garner support from key institutions likely due to asset reallocation in light of the low interest rates. The result season will likely play its part in setting expectations for the stock’s performances.
Brent oil (USD/bbl): 42.81 (-0.99% D/D)
WTI oil (USD/bbl): 40.17 (-1.01% D/D)
Gold (USD/oz): 1,804.74 (0.33% D/D)
Electricity prices, tax reforms hurdles to restoration of IMF program
An immediate revival of the International Monetary Fund (IMF) programme is not in sight due to differences over roadmap for increase in electricity prices and tax and institutional reforms, a senior official of the Ministry of Finance said on Friday.
Pakistan among borrowers eligible for debt service suspension
With an external debt stock of $73 billion at the end of 2018, Pakistan by far has emerged as the largest borrower in the list of 15 top Debt Service Suspension Initiative (DSSI) eligible borrowers.
ADB warns of stopping $500m worth loan release to Pakistan
The Asian Development Bank (ADB) has warned to stop disbursement under two loans amounting to $500 million due to Pakistan’s decision, which is rooted in an internal turf war, to change controlling ministry of National Disaster Risk Management Fund (NDRMF).
Deep recession: IMF expects uneven, partial recovery globally
The IMF’s Managing Director Ms Kristalina Georgieva says that due to the continuing impact of the COVID-19 pandemic, the global economy faces a deep recession this year, with partial and uneven recovery expected in 2021.
Oil refining, marketing policy formulated
Ministry of Energy (MoE) has formulated the Pakistan Oil Refining and Marketing Policy 2020, offering substantial incentives to investors to be notified after approval from the ECC and Cabinet.
OMCs to start importing Euro-V petrol from Aug
Pakistan will enter next month the ranks of countries that are using environment-friendly Euro-V petrol as the Ministry of Energy has issued guidelines, saying no oil marketing company (OMC) will be allowed to import petrol below Euro-V standard from August 1 this year.
Govt approves hiking drug prices by 10%
The PTI led federal government has amended the Drug Pricing Policy 2018, allowing pharmaceutical companies to increase prices of medicines up to 10%. According to a source, the decision to raise drug prices has been taken in line with consumer price index (CPI).
Income tax collection on exports sharply up 25pc in FY2020
Income tax collection on exports surged 25 percent to Rs7 billion in the last fiscal year of 2019/20 despite falling exports, indicating that rupee depreciation benefited the cash-desperate revenue authority much than the export sector, sources said.
FDI rises 88% to $2.56b
Long-term foreign investors poured much higher fresh capital into advanced mobile internet 3G/4G, a telecom-led microfinance bank, hydel power projects and oil and gas exploration in Pakistan in fiscal year ended June 30, 2020.
Seven-year high: Investment in Pakistan’s saving schemes soars
The Central Directorate of National Savings (CDNS) has mobilised seven-year high investment worth Rs306.311 billion by offering national savings certificates to individual and institutional investors in the 11 months of the previous fiscal year ended June 30, 2020, according to the central bank.
PTI govt may be unable to subsidise gas prices
The federal government may face trouble in continuing to subsidise gas prices through cross subsidy following the recent decision of the Oil and Gas Regulatory Authority (Ogra) that announced average prescribed prices for all categories of consumers.