Pakistan’s market continued its trend of recovery during the past week, gaining 1,113pts and being largely supported by institutional investors, particularly mutual funds. On a sector-wise basis, cements and banks aided the index’s recovery on account of the enticing valuations offered by the two sectors.
KASB Market View
While the market may remain wary of the rising COVID-19 cases and its potential for inducing stricter restrictions on economic activity, investors may likely continue building positions to place their bets on the improving macroeconomic landscape. We continue highlighting our preference for cyclical stocks, including cements, OMCs and automobiles.
SBP keeps interest rate at 7%
The State Bank of Pakistan (SBP) on Friday kept the interest rate unchanged at 7%, attributing the recent spike in inflation to government’s decision to increase electricity tariffs and uncontrolled wheat and sugar prices.
Pakistan to get off FATF grey list soon: Hammad
Federal Minister of Industries and Production Hammad Azhar said Sunday the homework to help Pakistan leave the Financial Action Task Force’s (FATF) grey list has been “completed”.
Corona resurge: Tough steps likely from today
The National Command and Operation Centre (NCOC) will hold a special meeting today (Monday) to review issues ranging from imposing smart lockdowns to closing of schools and markets across the country in the face of deadly third wave of coronavirus pandemic.
Cabinet gives nod to Rs5.65 power tariff rise
The federal cabinet on Friday approved the promulgation of an ordinance aimed at preparing a legal path to increase power tariff by a minimum Rs5.65 per unit from now till October to collect a whopping Rs884 billion from consumers.
Govt moves swiftly to secure $500m IMF tranche
In a serious move to fulfill the IMF conditions for securing release of $500 million tranche, the government has decided to implement the withdrawal of corporate tax exemptions and putting in place a mechanism for automatic electricity power tariff increases of about Rs5.36 per unit (34 per cent) over the next 27 months through presidential ordinances.
SBP buys dollars to support exporters
The depreciating US dollar was finally supported by the State Bank which purchased the greenback in the interbank market and lifted its price by more than Re1 on Friday, currency traders said on Saturday.
Feb C/A deficit narrows $50m MoM
The country’s current account deficit narrowed to $50 million in February 2021 compared to $210 million in January 2021, the State Bank of Pakistan (SBP) reported on Sunday.
MoI&P seeks Rs1.5bn LPS waiver
Ministries of Industries and Production (MoI&P) has sought waiver of Late Payment Surcharge (LPS) amounting to Rs1.5 billion for delayed payment of RLNG bills to SNGPL supplied to two urea fertiliser plants from September 2018 to November 2019, sources close to Minister for Industries told Business Recorder.
Subsidy likely to be withdrawn: 201 to 300 electricity units
The government is likely to withdraw subsidy available to electricity consumers using 201 to 300 units monthly gradually on the plea that provision of subsidy is not possible due to power sector’s financial woes, well informed sources told Business Recorder.
HBL becomes first Pakistani bank to open branch in Beijing
HBL became the first Pakistani bank to open a branch and serve clients in Beijing, China’s capital city.
-Word of the Day-
An inferior good is an economic term that describes a good whose demand drops when people’s incomes rise. These goods fall out of favor as incomes and the economy improve as consumers begin buying more costly substitutes instead.