KASB Morning Shout April 1, 2021

Pakistan equities opened higher led by improving reserves amid an inflow of USD 498.7mn from IMF as a loan tranche and launch of bonds worth USD 2.5bn. However, selling was witnessed in the last hour of the trading session as rising Covid-19 cases in the country and fears of strict lockdown rattled investor sentiment, pushing the benchmark index down approximately 500 points from its day high.

KASB Market View

Going forward, we expect the market to remain range bound with investors fearing a prolonged 3rd wave and strict lockdowns. However, strengthening PKR would garner investor’s interest cyclical stocks in coming months.

National News

Moody’s says B3 rating underpinned by country’s robust growth potential

Moody’s Investors Service (Moody’s) has assigned a foreign currency senior unsecured programme rating of (P)B3 to the government of Pakistan’s global medium-term note programme, as well as B3 ratings to the senior unsecured, US dollar denominated notes issued under the programme with maturities of 5-, 10- and 30-year.

https://epaper.brecorder.com/2021/04/01/24-page/880238-news.html

Pakistani Rupee continues to appreciate against US Dollar

PKR trajectory against the US dollar remained in an upward direction, as USD dropped below 153 mark at the interbank. As per details, the Pakistani rupee closed at 152.76 against the USD at the interbank, showing an appreciation of 0.22 percent. The PKR opened the trading day at 153.100 against USD, it dropped to the day low of 151.200 before it rebounded.

https://www.brecorder.com/news/40079688/pakistani-rupee-continues-to-appreciate-against-us-dollar

July-March (2020-21): Over Rs100bn increase in collection target

The Federal Board of Revenue (FBR) has provisionally collected net revenue of Rs3,394 billion during July-March (2020-21) against the assigned target of Rs3,287 billion, reflecting an increase of over Rs100 billion.

https://www.brecorder.com/news/40079955/july-march-2020-21-over-rs100bn-increase-in-collection-target

Govt to conduct forensic audit of loss making SOEs

The government has decided to conduct a forensic audit of loss-making State-Owned Enterprises (SOEs) for the last ten years, setting a deadline of June 30 for the task. According to sources, enterprises that will undergo a forensic audit include the Pakistan Railways (PR), Pakistan International Airlines (PIA), Sui Southern, Peshawar Electric Supply Company (PESCO) and Northern Power Generation Company, Pakistan Post, and electricity supply companies (DISCOs) of Quetta, Hyderabad, Lahore and Sukkur as 33 out of a total of 85 SOEs were contributing to major losses.

https://profit.pakistantoday.com.pk/2021/03/31/govt-to-conduct-forensic-audit-of-loss-making-soes/

PM rules out general lockdown

Prime Minister Imran Khan on Wednesday ruled out a general lockdown while acknowledging the country was going through a third wave of the pandemic. “We have to adopt a balanced policy where the spread of the virus can be prevented and where the poor man and the country’s economy are least affected,” Khan told a national coordinating committee meeting.

https://epaper.brecorder.com/2021/04/01/1-page/880007-news.html

Sindh govt announces set of new restrictions

Prime Minister Imran Khan on Wednesday ruled out a general lockdown while acknowledging the country was going through a third wave of the pandemic. “We have to adopt a balanced policy where the spread of the virus can be prevented and where the poor man and the country’s economy are least affected,” Khan told a national coordinating committee meeting.

https://epaper.brecorder.com/2021/04/01/23-page/880226-news.html

POL products’ prices reduced

The federal government Wedn-esday announced a decrease in the rates of petroleum products in the first half of April by reducing the cost of supply of PSO/ex-refinery prices, while keeping petroleum levy unchanged. The government has reduced the price of petrol by Rs1.55 per litre. The price of high speed diesel (HSD) is also slashed by Rs3.00 per litre.

https://epaper.brecorder.com/2021/04/01/1-page/880013-news.html

Ogra slashes price of LPG cylinders

In a monthly price review, the Oil and Gas Regulatory Authority (Ogra) has slashed the prices of domestic and commercial LPG cylinders with effect from Thursday (April 1). On Wednesday, the Ogra notified new LPG prices for domestic and commercial LPG consumers owing to decrease in prices of LPG internationally and low consumption.

https://epaper.brecorder.com/2021/04/01/6-page/880062-news.html

Fresh PAI submitted on behalf of Shanghai Electric

Arif Habib Limited, on behalf of Shanghai Electric Power Company Limited, has submitted a fresh Public Announcement of Intention (PAI) to directly or indirectly acquire up to 66.40 percent ordinary shares of K-Electric Limited by Shanghai Electric Power Company Limited, subject to receipt of requisite regulatory and other approvals. Arif Habib Limited announced this through a notice that it sent to Pakistan Stock Exchange on Wednesday.

https://epaper.brecorder.com/2021/04/01/24-page/880232-news.html

Ban on cotton, sugar imports from India lifted

Minister for Finance and Revenue Hammad Azhar stated on Wednesday that the government has decided to open import of sugar and cotton from India for the benefit of the public and small and medium enterprises (SMEs), saying that “sugar is 15 to 20 percent cheaper in India compared to Pakistan.”

https://www.brecorder.com/news/40079949/ban-on-cotton-sugar-imports-from-india-lifted

Germany offers €7,500,000 for textiles industry

The Federal Republic of Germany has provided up-to € 7,500,000 as contribution for the improvement of labor, social and environmental standards in textiles industry of Pakistan for the period of three years.

https://www.brecorder.com/news/40079776/germany-offers-7500000-for-textiles-industry

HASCOL’s Sukuk assigned default rating due to non-payment of an installment

VIS Credit Rating Company Ltd. (VIS) has assigned a ‘D’ rating (Defaulted Obligation) to the six-year privately placed Sukuk of Rs. 2bn, issued by Hascol Petroleum Limited (HPL) on account of non-payment of an installment due.

https://mettisglobal.news/hascols-sukuk-assigned-default-rating-due-to-non-payment-of-an-installment

SRO issued to amend rules; SRO issued to amend rules

The Federal Board of Revenue (FBR) will not initiate proceedings against legally valid declarations under the Foreign Exchange Regulation Act, 1947, Protection of Economic Reforms Act, 1992 and the Anti-Money Laundering Act, 2010 (section XII-A of the Schedule) with respect to assets, income or expenditure declared under the Voluntary Declaration of Domestic Assets, 2018, and Foreign Assets (Declaration and Repatriation) Act, 2018.

https://epaper.brecorder.com/2021/04/01/1-page/880019-news.html

Inferior Good

-Word of the Day-

An inferior good is an economic term that describes a good whose demand drops when people’s incomes rise. These goods fall out of favor as incomes and the economy improve as consumers begin buying more costly substitutes instead

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