The week started off on a positive note with the KSE-100 gaining 1,060pts over the first 2 trading sessions, even crossing the 47k during intra-day trading . The initial momentum was largely supported by recovering global oil prices allowing the index heavy-weight, E&Ps, to support the index’s momentum. During the latter half of the week, the index succumbed to selling pressure from key institutions, even brushing off Pakistan’s re-entry into the IMF program, causing the index to lose a considerable portion of its gains.

KASB Market View

Investors are likely keeping an eye on the upcoming FATF meeting, which has the potential to white-list Pakistan given the recent progress the country has made in passing anti-money laundering bills. We continue highlighting our preference for cyclical stocks including cements, steels and automobiles.

National News

Pakistan optimistic about exiting FATF grey list

The Financial Action Task Force (FATF) will meet on Monday to discuss and decide whether or not to keep Pakistan on the grey list, Dawn has learned from knowledgeable sources.

https://www.dawn.com/news/1608488/pakistan-optimistic-about-exiting-fatf-grey-list

Pakistan, IMF agree on increasing tranche size

Pakistan and the IMF have agreed for exploring options either to jack up the size of remaining three reviews of tranches or extend the time frame beyond September 2022 under the existing $6 billion Extended Fund Facility (EFF).

https://www.thenews.com.pk/print/793104-pakistan-imf-agree-on-increasing-tranche-size

No plan to relax Covid-19 restrictions: ministry

The government has no plan to totally relax the Covid-19 restrictions by March 1st, officials of the Health Ministry said.

https://epaper.brecorder.com/2021/02/20/1-page/870423-news.html

SBP takes measures to boost exports

In a bid to boost exports, the State Bank of Pakistan has allowed exporters of goods and services to retain a certain portion of their exports proceeds in their Special Foreign Currency Accounts (SFCA).

https://tribune.com.pk/story/2285095/sbp-takes-measures-to-boost-exports

Pakistan to get 5.6m more doses by end of March

With 504,500 doses of Covid-19 vaccine having been dispatched to the federating units, Pakistan is expected to receive another 5.6 million vaccines by the end of March.

https://www.dawn.com/news/1608485/pakistan-to-get-56m-more-doses-by-end-of-march

Bestway Cement assured of NOC for new plants

Punjab Minister for Industries and Trade Mian Aslam Iqbal has assured the Bestway Cement Company early release of the no-objection certificate (NOC) for setting up of new cement plants in Attock, Mianwali and Khushab.

https://epaper.brecorder.com/2021/02/20/7-page/870476-news.html

Govt to reduce IPPs’ gas tariff by 35%

The federal government is all set to reduce gas tariff up to 35 per cent for the independent power producers (IPPs) operating on low quality gas in a bid to rank these plants in high merit order.

https://tribune.com.pk/story/2285357/govt-to-reduce-ipps-gas-tariff-by-35

Glaxo supplier Citi plans Pakistan’s largest pharma IPO

Citi Pharma Ltd plans to raise as much as Rs2.85 billion ($18 million) in potentially the biggest initial share sale by a drugmaker in Pakistan, Bloomberg reported on Friday.

https://profit.pakistantoday.com.pk/2021/02/19/glaxo-supplier-citi-plans-pakistans-largest-pharma-ipo/

Tax exemption on sugar import notified

The Federal Board of Revenue (FBR) has notified exemption of sales tax and value-added tax on import of 500,000 tonnes of sugar, as an international tender has been floated to import at least 50,000 tonnes of the commodity by Eidul Fitr.

https://www.dawn.com/news/1608279/tax-exemption-on-sugar-import-notified

Pakistan LNG import tender

Qatar Petroleum Trading placed the lowest offer for a liquefied natural gas (LNG) cargo, which Pakistan LNG was seeking for delivery in April, according to a notice on Pakistan LNG’s website.

https://epaper.brecorder.com/2021/02/20/1-page/870436-news.html

Chinese firm plans $150m industrial park in Lahore to lift exports

A Chinese company is investing $150 million in an industrial park on Lahore’s border with Kasur, which will house state-of-the-art fabric units, dyeing facilities and garment manufacturing units for exporting sportswear from Pakistan to the Americas, Europe, Asia-Pacific and other regions of the world.

https://www.dawn.com/news/1608516/chinese-firm-plans-150m-industrial-park-in-lahore-to-lift-exports

Power firms seek 93-paisa hike for January

The electricity rates for consumers of 10 distribution companies (Discos) of ex-Wapda may go up by about 93 paisa per unit on account of monthly fuel cost adjustment for January due to higher than estimated power generation cost.

https://www.dawn.com/news/1608283/power-firms-seek-93-paisa-hike-for-january

Enterprise Value (EV)
-Word of the Day-

Enterprise value (EV) is a measure of a company’s total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company’s balance sheet. Enterprise value is a popular metric used to value a company for a potential takeover.