Hot off the heels of the federal budget, the market appears to have entered consolidation mode and hovered around the 48.5k mark. The cement sector found support from news reports, which suggested the industry to have hiked cement prices to offset the impact of rising coal prices. Other key sectors, however, appear to be range-bound as investors await post-budget clarity. Moreover, while rising oil prices may also sustain the recent exuberance witnessed in the E&Ps sector, particularly OGDC, its side-effect of increasing Pakistan’s import bill may cause apprehension amongst investors over its impact on the external accounts.
KASB Market View
All focus will be on the upcoming FATF Plenary meeting, which is scheduled on Jun 21-25. Recent reports highlight that Pakistan is largely compliant with 26 out of the 27 action points, increasing the likelihood of the country emerging out of the ‘Grey List’. Onwards, we believe the federal government’s focus on growth will likely provide support to cyclical industry including cements, steels and automobiles.
Hopes on coming out of FATF grey list high: Pakistan makes progress on 26 out of 27 Action Plan points
Pakistan has successfully made progress on 26 points of the Action Plan from the Financial Action Task Force (FATF) as an international cooperation review group was scheduled to meet virtually to examine the implementation process.
G-20 puts off Pakistan’s $3.7b loan repayment
In what comes as a relief amid the Covid-19 pandemic adversely affecting economic activities, G-20 countries have suspended the repayment of $3.7 billion loan by Pakistan till the end of the year, it was announced after a meeting of the federal cabinet on Tuesday.
Rs1.48trn Sindh budget proposes Rs25,000 minimum wage
The Sindh government Tuesday presented Rs1.477 trillion budget for financial year 2021-22 with estimated deficit of Rs25.738 billion.
Sindh development expenditures proposed at Rs329 billion
The development expenditure of Sindh province is estimated at Rs329 billion, which includes Rs222.5 billion for provincial annual development program (ADP) and Rs30 billion for districts ADP for the next fiscal year.
Prices of POL products go up
The Finance Ministry on Tuesday approved a Rs2.13/litre hike in petrol and an increase of Rs1.79/litre in the price of High-Speed Diesel.
KE allowed paisa 36/unit hike
National Electric Power Regulatory Authority (Nepra) on Tuesday agreed, in principle, to allow Paisa 36 per unit hike to Karachi Electric (KE) as Quarterly Tariff Adjustment (January-March) 2021 but deferred hearing on four months ( January-April) 2021 Fuel Cost Adjustment (FCA) till second week of July 2021 aimed at passing on minimum burden to consumers.