Bulls made a comeback to the Pakistan Stock Exchange on Tuesday as the benchmark KSE-100 index climbed 486 points owing to the much-awaited resolution of political dispute and negotiations between the government and protesters. A marginal drop in Covid-19 cases on Monday sparked some optimism about the economy and enticed investors to take fresh positions.
KASB Market View
We expect the result season to dictate the direction of market. However, rising COVID-19 cases might act as a dampener towards the index’s momentum. Additionally, positive newsflow related to rollover repayment of USD 2bn from UAE and resolution of circular debt would bode well for the investor’s investments. UBL, ENGRO and PSMC are expected to announce their results today and positive earnings surprise would bring spark in these stocks.
UAE rolls over repayment of $2bn deposit
ISLAMABAD: The United Arab Emirates (UAE) has rolled over Pakistan’s repayment of $ 2 billion deposit by the Abu Dhabi Fund, the Foreign Office said on Tuesday. This was announced at the conclusion of a three-day official visit of Foreign Minister Shah Mahmood Qureshi to the UAE, where he exchanged views on issues of mutual interest with Emirate leadership, including Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan.
Circular debt plan outline shared with WB
ISLAMABAD: Pakistan on Tuesday shared with the World Bank a revised outline of the Circular Debt Management Plan that seeks rationalisation of taxes, negotiated takeover of old independent power plants (IPPs) and closure of all old public sector plants to increase electricity tariffs, but slightly lower than that committed with the lenders under the IMF programme.
FBR considering reduction in number of WHT lines
ISLAMABAD: The Federal Board of Revenue’s major guiding principles of tax policy included reduce dependence on withholding taxes, removal of undesirable tax credits, accelerated depreciation, withdrawal of exemptions/reduced rates/exemption from specific provisions etc, Personal Income Tax (PIT) reforms and rationalisation of tax rates and reduction of tax slabs.
Cabinet gives go-ahead to reforms in govt functioning
ISLAMABAD: The cabinet on Tuesday consented to the decisions taken on March 31 by the cabinet committee on institutional reforms about the rationalization of manpower running the federal government machinery.
Govt gets $33b in foreign loans
The government has so far obtained $33 billion in gross foreign loans to service debt and support economic growth, as a think tank warns that unsustainable borrowing will keep economy in a state of low growth and close to default.
Issuing instrument in nature of redeemable capital
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has notified the list of investors/funds/schemes to whom any instrument in the nature of redeemable capital may be issued by the companies.
Oil imports jump by 65.8% YoY in March’21
April 20, 2021 (MLN): Resuming of economic activity after the period of strict lockdown bounced back the demand for petroleum products which translated a surge in import bill by 65.8% YoY basis to $1.1billion in March’21. While on MoM basis, the import of the same product jumped by 37.7%.
SBP unveils mechanism for payment of markup subsidy
KARACHI: The State Bank of Pakistan (SBP) has announced a mechanism for payment of markup subsidy for housing finance for the banks/DFIs working as Executing Agencies (EAs).
EV of $600m; TRGIL to sell its full stake in E-Telequote
KARACHI: TRG Pakistan Limited Tuesday announced that its associate TRGIL has entered into a definitive agreement to sell its entire economic stake in its health insurance marketing subsidiary (the company) to a leading US-based marketing company active in the insurance and financial services industry.
FBR opposes IMF’s proposal of Rs176bln new tax on salaried class
KARACHI: Government is resisting a proposal by the International Monetary Fund to cream off an additional Rs176 billion in tax revenue from salaried class in the upcoming budget for fiscal year 2021/22, people familiar with the matter said on Tuesday.
Probe commission report: Mess in oil industry pertains to Ogra rules
ISLAMABAD: The inquiry commission report on shortage of petroleum product has exposed that much of the mess that abounds in the oil industry pertains to Oil and Gas Regulatory Authority (Ogra) and the related laws/rules.
Govt approves centralised database plan for food stock
ISLAMABAD: The cabinet on Tuesday decided to establish a centralised database to maintain record of stocks of essential food items available with the federal and provincial governments to ensure the country does not face shortage.
Govt claims success in talks with TLP: Resolution tabled in NA as TLP calls off protest
ISLAMABAD: The banned Tehreek-e-Labbaik Pakistan (TLP) Tuesday called off its sit-in after successful negotiations with a government team led by Interior Minister Shaikh Rashid Ahmad.
Railway project sent to Chinese bank for approval of $6bn loan
LAHORE: The Chinese government has sent Pakistan’s first modern railways’ infrastructure project — Main Line-1 (ML-1) — to the Exim Bank of China for approval of a $6 billion loan after all technical, administrative and other issues have finally been resolved, paving the way for launching civil work on this scheme within this year.
IGFC to cut stake in Byco
LAHORE: IGFC Oil and Gas Ltd (previously known as Abraaj Mauritius Oil and Gas SPV Ltd) has decided to reduce its indirect equity investment in Byco Petroleum Pakistan Ltd (BPPL) held through Byco Industries Incorporated (BII), according to a company notice sent to the Pakistan Stock Exchange on Tuesday.
Cabinet ratifies to withdraw Customs Duty on Cotton Yarn Imports
April 20, 2021 (MLN): To encourage value-added exports, the Cabinet, in its meeting today, has ratified the decision of the Economic Coordination Committee to withdraw Customs Duty on import of Cotton Yarn.
-Word of the Day-
Blue chip, meaning “a stock issue of high investment quality that usually pertains to a substantial, well-established company,” was first noted in the late 19th century. From this meaning extended senses developed, such that blue chip applies to a consistently successful and profitable venture or enterprise, an outstandingly worthwhile and valuable property or asset, and an athlete rated as excellent or as an excellent prospect.