KSE-100 started with selling pressure today as Finance Minister was asked to resign but ended positive. Pakistan Rupee continue to appreciate to close Rs 153.09. Continuous supply of USD with lower travel/higher remittances keeping the currency strong. Stronger upside was witnessed in Unity Foods, Pak Electron, Pak Suzuki, Honda Car & MCB Bank’s shares. Similarly, right after IMF’s nod for $500m, Pakistan has secured $300 from ADB for hydropower, $1.3b from World Bank & today books opened for global bond issuances as well. Asad Umar has also said Pakistan would import 3m dozes of Chinese vaccine by Mid-April that may help reduce covid outbreak. However, next week FIA summons people on sugar scandal & investors could get nervous on potential involvement of PTI’s members.

KASB Market View

We feel currency strengthening, coupled with PM Khan’s negative covid test & Eurobond issuance is going to create a new rally in cyclical stocks over next few months. Excitement over bond issuance can keep market open positive tomorrow.

National News

WB expects 1.3pc growth by June-end

ISLAMABAD: Pakistan’s GDP growth is expected to reach 1.3 percent in the fiscal year ending June 2021, slightly better than the January forecast; however, the recovery remains fragile, as the forecast is predicated on the absence of significant COVID-19, says the World Bank.

https://epaper.brecorder.com/2021/03/31/1-page/878667-news.html

$499m IMF tranche received

KARACHI: Pakistan on Tuesday night received around $500 million from International Monetary Fund (IMF) as a loan tranche under Extended Fund Facility (EFF) for budget support. The State Bank of Pakistan (SBP) has confirmed on Twitter that it has received an IMF tranche amounting to $ 498.7 million (equivalent to SDR 350 million) under the Extended Fund Facility.

https://epaper.brecorder.com/2021/03/31/1-page/878666-news.html

Govt launches 3-tranche bond deal to raise $2.5bn

DUBAI: Pakistan launched a three-tranche bond deal on Tuesday to raise $2.5 billion comprising tranches of five, 10 and 30 years for which it received over $5.3 billion in combined orders, a document showed, in its first international bond sale since late 2017. Pakistan sold $1 billion in five-year bonds at 6%, $1 billion in 10-year paper at 7.375% and $500 million in 30-year notes at 8.875%, the document from one of the banks on the deal showed.

Fitch Ratings assigns ‘B-‘ rating to Pakistan’s proposed foreign-currency bonds

Fitch Ratings, the American credit rating agency has assigned Pakistan’s (B-/Stable) proposed foreign-currency bonds a ‘B-‘ rating on Tuesday. As per Fitch Ratings, the rating is in line with Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘B-‘ with a stable outlook. Fitch affirmed Pakistan’s Long-Term Foreign- and Local-Currency IDRs on 17 August 2020. The rating on the proposed bonds is sensitive to any changes in Pakistan’s Long-Term Foreign-Currency IDR. The following were the rating sensitivities for the sovereign rating published in the rating action commentary in August 2020.

https://www.brecorder.com/news/40079176/fitch-ratings-assigns-b-rating-to-pakistans-proposed-foreign-currency-bonds

Construction of hydropower plant; ADB approves $300m loan

ISLAMABAD: The Asian Development Bank (ADB) has approved a $300 million loan to finance the construction of a 300-megawatt hydropower plant which will increase the share of clean energy in Pakistan and improve the country’s energy security. An ADB official in Islamabad told Business Recorder that interest on the loan is London Interbank Offered Rate (Libor) plus 0.3 percent. The plant will add 1,143 gigawatt-hours of clean energy annually to the country’s energy mix, enhancing the energy sector’s reliability and sustainability.

https://epaper.brecorder.com/2021/03/31/1-page/878655-news.html

Foreign commercial loans; MoF seeks exemption on interest/profit payment

ISLAMABAD: Ministry of Finance (MoF) has sought tax exemption on interest/profit payment accrued on foreign commercial loans of $ 3.040 billion raised from international financial market since February 2020, sources close to Secretary Finance told Business Recorder.

https://epaper.brecorder.com/2021/03/31/1-page/878668-news.html

ECC to discuss sugar, cotton import from India

The Economic Coordination Committee (ECC) is going to discuss the possibilities of import of sugar and cotton from India today (Wednesday). To meet the cotton and sugar requirements of the country, the Textile Division had decided to move summaries to the ECC to remove ban on import of both the items from India.

https://pakobserver.net/ecc-to-discuss-sugar-cotton-import-from-india/

TIP finds more ambiguities in purchase of Covid-19 vaccine

KARACHI: Transparency International Pakistan has found more ambiguities in purchase of Covid-19 vaccine for private sector by the federal government. In a letter to the Ministry of National Health Services, Regulations & Coordination (NHSR&C), TI Pakistan, based on new complaints, highlighted more ambiguities in approving Sputnik – Covid-19 vaccine for private import by Drugs Regulatory Authority of Pakistan (DRAP).

https://www.brecorder.com/news/40079583/tip-finds-more-ambiguities-in-purchase-of-covid-19-vaccine

PM replies to Modi’s letter: ‘People of Pakistan also desire peaceful relations’

ISLAMABAD: Prime Minister Imran Khan on Tuesday called for creating an enabling environment for a constructive and result-oriented dialogue in a letter written to Indian Prime Minister Narendra Modi. Prime Minister Khan, who just recovered from Covid-19, wrote a letter to his Indian counterpart in response to the latter’s message of greetings on the occasion of the Pakistan Day.

https://www.brecorder.com/news/40079619/pm-replies-to-modis-letter-people-of-pakistan-also-desire-peaceful-relations

Acquisition of shares by Shanghai Electric KE receives PAI ‘withdrawal’

KARACHI: K-Electric has received “withdrawal” of Public Announcement of Intention (PAI) for acquisition of up to 66.40 percent voting shares of K-Electric Limited by Shanghai Electric Power Company Limited.

https://epaper.brecorder.com/2021/03/31/1-page/878660-news.html

Names of 988 projects of developers, builders registered with FBR under PM’s package released

ISLAMABAD: The Federal Board of Revenue (FBR) has released the names of 988 projects of developers and builders registered with the FBR under the prime minister’s incentive package for the construction sector.

https://www.brecorder.com/news/40079469/names-of-988-projects-of-developers-builders-registered-with-fbr-under-pms-package-released

Govt yet to release Rs240bn for two dams, SC told

ISLAMABAD: The Water and Power Development Authority (Wapda) told the Supreme Court on Tuesday that the government had not yet released a staggering Rs240 billion for equity injection on part of the authority for construction of much-needed Diamer Basha and Mohmand dams.

https://www.dawn.com/news/1615586/govt-yet-to-release-rs240bn-for-two-dams-sc-told

Pakistan to import Chinese Cansino vaccine in bulk to package 3m doses locally: Asad Umar

Pakistan will import Chinese Cansino Biologics Covid-19 vaccines in bulk to package three million doses locally, Minister for Planning and Development Asad Umar said on Tuesday.

https://www.dawn.com/news/1615482/pakistan-to-import-chinese-cansino-vaccine-in-bulk-to-package-3m-doses-locally-asad-umar

Tabish Gauhar given additional charge of petroleum in latest cabinet shuffle

In the latest cabinet reshuffle, Special Assistant to the Prime Minister (SAPM) on Power Tabish Gauhar was on Tuesday given additional charge as the premier’s aide on petroleum, replacing Nadeem Babar, who had been asked to step down last week.

https://www.dawn.com/news/1615474/tabish-gauhar-given-additional-charge-of-petroleum-in-latest-cabinet-shuffle

POL products’ prices likely to be slashed

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has recommended slashing petroleum products prices by up to Rs 5.40 per litre approximately for the first half of April (April 1-15). Credible sources in the Petroleum Division told that the authority has recommended a reduction of Rs 1.40 per litre in the price of petrol and Rs 5.40 per litre in the price of high-speed diesel (HSD) with effect from April 1.

https://www.brecorder.com/news/40079465/pol-products-prices-likely-to-be-slashed

Power consumers to be burdened further

ISLAMABAD: The government is all set to further burden electricity consumers with monthly Fuel Cost Component (FCA) of Paisa 65 per unit for February 2021 and Paisa 91 per unit as Quarterly Tariff Adjustment (QTA).0

https://epaper.brecorder.com/2021/03/31/1-page/878657-news.html

Supply line: Sugar mills offer conditional support to Punjab govt

LAHORE: Sugar crisis will be over soon as Pakistan Sugar Mills Association (PSMA) has conditionally offered the Punjab government to supply the commodity through dealers registered with the Punjab Cane Commissioner under the newly-promulgated Punjab Sugar (Supply-Chain Management) Order 2021, officials sources claimed.

https://www.brecorder.com/news/40079463

Karachi unable to keep pace with its physical growth: WB

ISLAMABAD: Residents and businesses of Karachi are witnessing a city unable to keep pace with its physical growth, or to equitably meet the basic needs of residents and local businesses, says the World Bank. The Bank in a “Fact Sheet: World Bank’s Engagement in Karachi’, has stated that “Karachi is Pakistan’s economic hub.

https://www.brecorder.com/news/40079462

Dividend

-Word of the Day-

A dividend is the distribution of some of a company’s earnings to a class of its shareholders, as determined by the company’s board of directors. Common shareholders of dividend-paying companies are typically eligible as long as they own the stock before the ex-dividend date.

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KASB Morning Shout March 31st, 2021

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