The previous week saw the market register record-high volumes on two consecutive trading sessions. Moreover, the index also managed to break past the 47k level after a period of nearly 4 years. Positive news on the economic front in tandem with declining infection rates of the pandemic likely led the way from the rally. Index-heavyweights led the chart with E&Ps and Commercial banks taking center-stage.

KASB Market View

Expectations of the upcoming federal budget will likely dictate the index’s momentum in the coming trading sessions. A growth-centric projection will likely pave way for cyclical stocks to outperform including cements, steels, OMCs and automobiles. Additionally, strong economic indicators may further push commercial banks on expectation of provision reversals. Moreover, progress on the circular debt front may allow the energy chain’s exuberance to continue, onwards.

National News

SBP leaves interest rate unchanged at 7pc

The State Bank of Pakistan (SBP) on Friday kept the policy interest rate unchanged at 7 per cent for the fifth time during last 10 months seeing the demand-side pressures on inflation continuing to be relatively contained while it noted there is still some spare capacity for the growth of the economy.

https://www.dawn.com/news/1626313/sbp-leaves-interest-rate-unchanged-at-7pc

In a first, Rs4.143tr revenue collected in 11 months

Pakistan’s top tax machinery on Saturday claimed to have crossed Rs4.143 trillion in 11 months of the current fiscal year against Rs3.536tr collected over the corresponding months of last year indicating a revival of economic activities in the country.

https://www.dawn.com/news/1626450/in-a-first-rs4143tr-revenue-collected-in-11-months

In budget, Biden administration seeks economic support for Pakistan

In its first budget, for fiscal year 2022, the Biden administration also seeks money for providing economic and social support to Pakistan and for training Pakistani military personnel.

https://www.dawn.com/news/1626456/in-budget-biden-administration-seeks-economic-support-for-pakistan

CDWP approves 15 projects worth Rs169bn

The Central Development Working Party (CDWP) has cleared 15 projects worth Rs169.2 billion related to transport, communication and construction sectors.

https://www.dawn.com/news/1626451/cdwp-approves-15-projects-worth-rs169bn

OMCs reluctant to uplift furnace oil

Once again an oil crisis is looming in the country due to low uplift of furnace oil by oil marketing companies (OMCs), which has forced refineries to cut production.

https://tribune.com.pk/story/2302342/omcs-reluctant-to-uplift-furnace-oil

PSDP set at Rs900bn to achieve 4.8pc GDP

The Annual Plan Coordination Committee (APCC) on Friday finalised Rs900 billion worth of Public Sector Development Programme (PSDP) to achieve an economic growth rate of 4.8 per cent in the next fiscal year (2021-22).

https://www.dawn.com/news/1626294/psdp-set-at-rs900bn-to-achieve-48pc-gdp

Targeted subsidy for electricity consumers: Govt will have to seek IMF waiver on structural benchmark

The government will have to seek a waiver from the IMF on structural benchmark if Islamabad fails to place targeted subsidy for electricity consumers in the budget 2021-22.

https://www.thenews.com.pk/print/842031-targeted-subsidy-for-electricity-consumers-govt-will-have-to-seek-imf-waiver-on-structural-benchmark

Govt to allocate Rs55b for CPEC

The government has proposed an allocation of Rs55 billion for the China-Pakistan Economic Corridor (CPEC) projects in the next budget, which does not match with the needs to finance a portfolio of Rs1.6 trillion.

https://tribune.com.pk/story/2302333/govt-to-allocate-rs55b-for-cpec

Govt is focused on incentivising investment: PM

Prime Minister Imran Khan on Friday said his government was focused on incentivizing investment and making the country an attractive destination for investors.

https://www.dawn.com/news/1626290/govt-is-focused-on-incentivising-investment-pm

PPL declares exemption of Sui mining lease area

Pakistan Petroleum Limited (PPL) has announced that the Sui mining lease area has been exempted by the Government of Pakistan from the application of Rule 34 of the Pakistan Petroleum (Production) Rules, 1949, to the extent that the Company has been allowed to continue production from the Sui mining lease for a further period of one year with effect from June 01, 2021.

https://www.brecorder.com/news/40096157/ppl-declares-exemption-of-sui-mining-lease-area

Direct listing of companies at PSX: SECP approves framework

In continuation of its efforts for creating an enabling eco-system to improve capital formation in the country, the Securities and Exchange Commission of Pakistan (SECP), in coordination with Pakistan Stock Exchange (PSX), has approved framework for Direct Listing of companies at PSX.

https://www.brecorder.com/news/40096164/direct-listing-of-companies-at-psx-secp-approves-framework

Jul ’18 to Dec ’20: Public debt rose by Rs12.5trn, Tarin tells Senate

Pakistan’s total public debt increased by Rs 12.5 trillion from July 2018 to December 2020, Finance Minister Shaukat Tarin informed the Senate in a written reply Friday.

https://www.brecorder.com/news/40096173/jul-18-to-dec-20-public-debt-rose-by-rs125trn-tarin-tells-senate

Country witnesses record production of wheat: minister

Federal Minister for National Food Security and Research, Fakhar Imam, Saturday said the country has witnessed record production of wheat, rice, maize, onion, and pulses this year.

https://www.brecorder.com/news/40096338/country-witnesses-record-production-of-wheat-minister

Balochistan scrutinising proposal on Reko Diq development

The Baluchistan government is scrutinizing a proposal submitted by a local consortium for development of Reko Diq, a copper and gold mine in Baluchistan, an official of Baluchistan government, on condition of anonymity told Business Recorder.

https://www.brecorder.com/news/40096335/balochistan-scrutinising-proposal-on-reko-diq-development

Rs25k, Rs40k bonds can now be redeemed by Sept 30

The federal finance ministry has extended last date for encashment, conversion and redemption of prize bonds of denomination of Rs25,000 and Rs40,000 until Sept 30, 2021.

https://www.dawn.com/news/1626470/rs25k-rs40k-bonds-can-now-be-redeemed-by-sept-30

28pc growth in lending through credit cards

Banks advances via credit cards swelled by 28 per cent to Rs53 billion in April from Rs42bn in the same month a year ago, latest data released by the State Bank of Pakistan (SBP) showed on Saturday.

https://www.dawn.com/news/1626472/28pc-growth-in-lending-through-credit-cards

AKD buys BIPL Securities for Rs663m

Bank Islami Pakistan has sold its 100 per cent shareholding in its subsidiary BIPL Securities to AKD Securities at a price of Rs8.6 per share, according to the information disclosed through a recent bourse filing.

https://www.dawn.com/news/1626311/akd-buys-bipl-securities-for-rs663m