The market remained predominantly negative throughout the week, losing 363pts over its course. The continuation of FATF’s gray-listing put a cap on the index’s performance with the market being largely divided over the potential outcome. The index’s negative performance largely emanated from heavy-weights namely Oil & Gas, and commercial banks. The cement sector continued to perform after witnessing a sharp recovery in its half-yearly results, emerging as the week’s top performing sector.
KASB Market View
The market is likely to move on from FATF’s outcome and pin its hopes on the upcoming Plenary Meeting scheduled in Jun21 for potential white-listing. With the result season largely concluded, the market presently lacks triggers to ignite performance. We continue highlighting our preference for cyclical stocks such as cements, steel and automobile.
Tax collection touches Rs 2,900 bn against target of Rs 2,898 bn
The Federal Board of Revenue (FBR) has provisionally collected Rs328 billion so far in February 2021. So the overall tax collection in the first eight months (July-Feb) touched Rs 2,900 billion against the desired target of Rs 2,898 billion.
Govt in talks to lower Chinese power profits
Pakistan and China have formally started talks on reduction in profits on Chinese power plants established by Chinese companies after the conclusion of deals with Independent Power Producers (IPPs) and reduction in Return on Equity (RoE) of public sector power plants, well-informed sources told Business Recorder.
No change in petrol prices as PM Imran turns down Ogra’s proposed hike
Prime Minister Imran Khan has turned down a proposal by the Oil and Gas Regulatory Authority for an increase in fuel prices, Special Assistant to Prime Minister on Political Communication Shahbaz Gill said on Sunday.
SPI increases 2.41%
The Sensitive Price Indicator (SPI) for the week ended February 25, 2021 registered an increase of 2.41% for the combined income group, going up from 143.63 points during the week ended February 18, 2021 to 147.09 points in the week under review.
New textile policy on the cards
Pakistan is working on a new textile policy which will certainly help the country maintain the current tempo of growth, said federal Minister for Planning, Development and Special Initiatives Asad Umar.
US welcomes ceasefire agreement between Pakistan, India
The United States welcomed the joint statement between Pakistan and India to observe a ceasefire – which initiated on February 25 – along the Line of Control (LoC) and all other sectors, US State Department said in a press briefing.
Pakistan, Qatar sign 10-year LNG supply contract
Pakistan and Qatar have signed another long-term Liquefied Natural Gas (LNG) supply contract for additional 200 million cubic feet a day (MMCFD) at around 31 per cent lower rate than the 2015 contract for 500MMCFD.
Govt borrows $2.7bln to repay foreign loans in Jul-Jan
Government borrowed $2.7 billion from multiple external financing sources to repay maturing foreign commercial loans during the first seven months of the current fiscal year of 2020/21, according to the latest official data.
PIBs attract $137m foreign investment in four months
Pakistan Investment Bonds (PIBs) attracted $37.6 million (Rs6 billion) in February – the highest investment in a single month – during the current fiscal year.
Foreign investment in 7MFY21 down by 78pc: ministry
Amid 78pc decline in total foreign investment, the Ministry of Finance on Friday raised expectations about economic recovery during the current fiscal year based on improved signs in first seven months.
Sugar production expected to surpass 5.5 million tons
Sugar output is expected to beat the initial estimate by 300,000 tons this year, according to the official data, as the government stepped up efforts to keep track of the sweetener supply chain.
Rs479.24bn released against Rs650bn budgetary allocation
The federal government has released Rs479.24 billion (73.73 percent) including Rs69.62 billion foreign aid for various ongoing and new development projects under the Public-Sector Development Programme (PSDP) 2020-21 against the total budgeted allocation of Rs650 billion.
Rupee hits 3-month high level of 158.1 on foreign inflows
Pakistani rupee hit more than three-month high of 158.1 against the US dollar in the interbank trade on Friday as recent bouts of foreign inflows strengthened the local currency.
-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.