KSE-100 Index remained flattish to red today. Index keeps oscillating in a narrow band in the earnings week as investors weigh the strong possibility of further targeted lockdowns vs strong corporate earnings. So far, even the good results haven’t been able to rejoice their share prices. Today’s warning from NCOC present a grim picture of next few days/weeks as hospital capacities are being filled. While PM has repeatedly said “national” lockdown is out of question, cities might witnesses further lockdowns soon.
KASB Market View
Coinciding are the efforts of the government to renegotiate Circular Debt plan & Tax targets with the IMF. Budget preparations are in the final stages & government is in no mood to 1) increase electricity tariff 2) impose taxes on salaried class 3) go for super high tax target. Thus, the new finance minister is renegotiating on these points.
Among corporate results of the March quarter, Maple Leaf reported Rs 1.11 Power cement reported Rs -0.01, Orix Lease reported 1.4, Avanceon reported Rs 4.8 (full year) & Nishat Power reported EPS 1.8. The results were mostly in line with expectation whereas Avanceon’s results were not exciting given the interest in the Technology sector. In addition, Packages announced expansion worth Rs 2.8b on corrugated plant expanding by 115,000 tons per annum.
UK pledges support on FATF
British High Commissioner (HC) to Pakistan Dr Christian Turner on Wednesday said that the United Kingdom (UK) will support Pakistan on Financial Action Task Force (FATF) issues.
Concessions from China: Economic team quizzed by WB over lack of progress
The World Bank has reportedly quizzed government’s economic team for not showing concrete progress on financial concessions from China on power projects established under the China Pakistan Economic Corridor (CPEC) at par with others, well-informed sources told Business Recorder.
Covid-19: govt raises red flag
National Command and Operation Centre (NCOC) Chairman Asad Umar Wednesday warned of imposition of more restrictions owing to worsening Covid-19 situation in the country. Umar, who is also Federal Minister for Planning, after chairing a meeting of the NCOC, told a media briefing that there was a lack of implementation of Covid-19 SOPs during the third coronavirus wave.
Auction Result: SBP Sells T-Bills worth Rs.708.45 Billion
The State Bank of Pakistan(SBP) conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs.708.45 billion for 3 and 6 months. Auction target was Rs.700.00 billion against a maturing amount of Rs.571.00 billion. Cut off yield for 3 and 6 months were 7.4 and 7.6871 percent.
MoE to submit new refinery policy to ECC next week
Ministry of Energy (MoE) is likely to submit new refinery policy to the Economic Coordination Committee (ECC) of the Cabinet next week, official sources told Business Recorder.
CPPA-G seeks Rs0.61 reduction in Discos tariffs for March
Central Power Purchasing Agency-Guaranteed (CPPA-G) has sought a reduction of Rs 0.61 per unit in tariffs of Discos for March 2021 under monthly fuel price adjustment mechanism.
Non-resident Pakistanis can now invest in mutual funds with Al Meezan Investments
Non-resident Pakistanis holding a Roshan Digital Account (RDA) can now invest in Mutual Funds through Al Meezan Investment Management Limited, one of Pakistan’s largest and only Shariah Compliant Asset Management Company. In addition, residents with assets abroad declared in their tax returns can also invest.
IT/ITES Exports Expected to Decrease Due to the Removal of Tax Exemption
This sudden change in the policy based on the demands of the International Monetary Fund (IMF) is going to have adverse effects on the growth and rising exports of the IT Sector. Such inconsistencies in the policies send out a discouraging message to enterprises and investors looking to enter into Pakistan.
Three key UN bodies; Pakistan secures membership
Pakistan has secured membership of three key UN bodies in elections held at the United Nations headquarters in New York, the Foreign Office said on Wednesday.
Transaction structure for M-6 motorway authorized
The Public-Private Partnership Authority (PPPA) on Wednesday authorised the viability gap fund and transaction structure for the Sukkur-Hyderabad motorway project which is expected to cost about Rs200 billion.
Govt seeks time to meet WB’s loan terms
The government on Tuesday sought more time from the World Bank to implement its conditions for qualifying for $1.5 billion loans to meet the burgeoning external financing needs, sources told The Express Tribune.
PM inaugurates housing scheme for underprivileged in Nowshera
Prime Minister Imran Khan inaugurated another housing scheme for the underprivileged in the Nowshera district of Khyber-Pakhtunkhwa on Wednesday.
Pakistan beats India in apparel exports to US
Pakistan performed better than India in apparel exports to the United States in February 2021. Pakistan had an outstanding performance among apparel export destinations globally during February, according to Sourcing Journal, a credible source for textile sector information.
-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.