The market continued its bearish spell yesterday and lost 912pts (-2.13%), falling back down to the 42k level. The sell-off is likely being instigated by expectations of high inflation, tough IMF-led economic measures and political uncertainty as the senate chairmanship elections inch closer. A win by the coalition’s candidate in the senate elections may cool off the recent political noise while a win by the PDM’s candidate may intensify the antigovernmental protests by the opposition.
KASB Market View
We expect the market’s performance to remain restricted on account of the uncertainty on the political front and expectations of high inflation, igniting fears over the length of the recent monetary easing cycle. The long-term macro theme, however, remain intact. As such we continue recommending positions in cyclical stocks including cements and automobiles.
IMF approval likely by March 24
The International Monetary Fund (IMF) may finally revive Pakistan’s stalled loan programme on March 24 as the government rushes to show progress on over two-and-a-half-dozen conditions after keeping those pending for over a year
Over 2,000 cases reported amid third wave fears
The spectre of a fresh wave of Covid-19 loomed over the country on Thursday as the number of people reported to have contracted the potentially fatal disease in a day topped the figure of 2,000 after a gap of about a month, with half of those infected belonging to Punjab.
February car sales up 31pc on year-start buying
Passenger car sales picked up 31 percent in February 2021 compared to same period last year, largely driven by low markup-induced late start-of-the-year buying, latest data showed on Thursday.
Power surcharge bill passed by NA body
National Assembly Standing Committee on Power on Thursday empowered the Federal Government to increase electricity tariff through imposition of surcharge up to 10 percent of aggregate revenue requirement of all electric suppliers, with a one-vote majority.
Jul-Feb remittances up 24.1pc YoY
Workers’ remittances continued to post a strong growth, surging by over 24 percent during the first eight months of this fiscal year (FY21) supported by the government’s measurers to encourage inflows through legal channels.
Certain items: Cash margin restriction on import waived
In order to facilitate industries, the State Bank of Pakistan (SBP) Thursday announced waiver of cash margin restriction on import of certain items.
Industry status for IT and telecom sector: minister
To boost the Digital Pakistan initiative, the government has decided to accord major concessions to the IT & Telecom sector by granting it the status of ‘industry’, with reduced taxes and duties, Federal Minister for Information Technology and Telecommunication Syed Amin-ul-Haque said on Thursday.
ECNEC okays Rs325 bln for road construction, reservoirs projects
The Executive Committee of the National Economic Council (Ecnec) on Thursday approved nearly Rs325 billion for infrastructure development, including construction of roads and water reservoirs projects.
Lucky Cement starts commercial operations in Iraq
Lucky Cement Limited announced on Thursday that it has commenced commercial operations of its cement production facility in Iraq.In a communication, the company said that its greenfield cement production facility in Samawah, Iraq, with a capacity of 1.2 million tons per annum, has successfully commenced its commercial operations with effect from March 10, 2021.
-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