Daily news: 2nd-July-2020

Good Morning

The Consumer Price Index (CPI)-based inflation nationwide has registered an increase of 8.6 percent on year-on-year (YoY) basis in June 2020 as compared to an increase of 8.2 percent in May, and eight percent in June 2019. The revenue collection saw a paltry growth of 3.9 per cent year-on-year in 2019-20 mainly due to the lockdown and a sharp deceleration in economic activity since the coronavirus outbreak. On the recommendations of the Sindh government, the home department has extended the date of ‘smart’ lockdown throughout the province until July 15.

Market View: The KSE100 Index gained 467.49 points during Thursday’s trading session. We expect the market to sustain the rally on back of surprise interest rate cut last week by State Bank of Pakistan. However, extension in smart lockdown might reverse the rally slightly.

Commodities:

Brent oil (USD/bbl): 42.09 (+0.14% D/D)

Crude oil (USD/bbl): 39.86 (+0.10% D/D)

Gold (USD/oz): 1,776.80 (-0.17% D/D)

National News

June inflation rate edges up slightly to 8.59pc YoY

ISLAMABAD: The Consumer Price Index (CPI)-based inflation nationwide has registered an increase of 8.6 percent on year-on-year (YoY) basis in June 2020 as compared to an increase of 8.2 percent in May, and eight percent in June 2019.

https://www.brecorder.com/news/40002396/june-inflation-rate-edges-up-slightly-to-859pc-yoy

Revenue collection up 3.9pc in 2019-20

ISLAMABAD: The revenue collection saw a paltry growth of 3.9 per cent year-on-year in 2019-20 mainly due to the lockdown and a sharp deceleration in economic activity since the coronavirus outbreak.

https://www.dawn.com/news/1566272/revenue-collection-up-39pc-in-2019-20

Finance Bill, 2020: No new sales tax on mobile phone SIM imposed: FBR

ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday clarified that the FBR had not imposed any new sales tax of Rs250 per new mobile phone SIM through amendments in the Finance Bill, 2020.

https://www.brecorder.com/news/40002399/finance-bill-2020-no-new-sales-tax-on-mobile-phone-sim-imposed-fbr

WB approves $500m loan for Pakistan’s budget support

ISLAMABAD: The World Bank (WB) on Tuesday announced that it has approved another $500 million loan to Pakistan for the country’s budget support following its increased expenditures on Covid-19 crisis response.

https://www.dawn.com/news/1566252/wb-approves-500m-loan-for-pakistans-budget-support

Fresh projects put on hold till finalisation of power capacity expansion plan

ISLAMABAD: Rebuffing the power regulator’s advice, the Power Division on Wednesday put on hold making fresh commitments for new power projects until a consensus is reached on the country’s first Integrated Generation Capacity Expansion Plan (2020-2047) awaiting approval of the National Electric Power Regulatory Authority (Nepra).

https://www.dawn.com/news/1566473/fresh-projects-put-on-hold-till-finalisation-of-power-capacity-expansion-plan

Defer repayment plea of principal loans amounts: Three-month extension to NBMFCs allowed

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has allowed three months extension to the non-bank micro-finance companies (NBMFCs) for accepting borrowers request to defer repayment of principal loans amounts.

https://www.brecorder.com/news/40002398/defer-repayment-plea-of-principal-loans-amounts-three-month-extension-to-nbmfcs-allowed

CCoP to discuss sell-off of Roosevelt Hotel today

ISLAMABAD: The federal government has deferred discussions on the privatisation of Roosevelt Hotel, Manhattan, New York; policy guidelines with respect to sale price of RLNG, and 2020-2021 projections for urea fertiliser for Thursday (today).

https://www.brecorder.com/news/40002394/ccop-to-discuss-sell-off-of-roosevelt-hotel-today

Transit trade with Afghanistan: Razak apprises IDFC CEO about development

Giving an overview of Pakistan’s economic relationships with the regional countries, Abdul Razak Dawood said Pakistan is already working closely with Afghanistan particularly on the development of transit trade as well as building of long term economic relationships.

https://www.brecorder.com/news/40002326/transit-trade-with-afghanistan-razak-apprises-idfc-ceo-about-development

US keen to include Pakistan in $3b regional fund

ISLAMABAD: The United States intends to launch a regional fund for development in Central Asian Republics (CARs), which will include Pakistan as well.

https://tribune.com.pk/story/2252842/us-keen-to-include-pakistan-in-3b-regional-fund

Cabinet approves increase in EOBI pension

ISLAMABAD: The federal government on Wednesday approved an increase in the Employees Old-Age Benefits Institution (EOBI) pensions for the elderly across Pakistan.

https://www.thenews.com.pk/print/680817-cabinet-approves-increase-in-eobi-pension

Sindh extends ‘smart’ lockdown until July 15 to control rising COVID-19 cases

On the recommendations of the Sindh government, the home department has extended the date of ‘smart’ lockdown throughout the province until July 15.

https://www.thenews.com.pk/print/680658-sindh-extends-smart-lockdown-until-july-15-to-control-rising-covid-19-cases

AGP reveals Rs2.96tr irregularities in Power Division

ISLAMABAD: The Auditor General of Pakistan (AGP) has revealed irregularities of Rs2,962 billion in 318 cases of Power Division and its attached departments.

FY20: PSX among top-performing markets despite Covid-19

KARACHI: Despite Covid-related challenges, the Pakistan Stock Exchange managed to close the fiscal year 2019-20 in the green, registering a gain of 1.5pc.

Urea offtake jumps 76pc to 1.2m tonnes in June

KARACHI: The provisional offtake of urea registered a whopping increase of approximately 76pc YoY to 610,000 tonnes in June 2020, as compared to the same month of last year.

International News

BioNTech, Pfizer report progress in coronavirus vaccine trial

WASHINGTON: BioNTech of Germany and the US pharmaceutical giant Pfizer reported positive preliminary results on Wednesday from a joint project to develop a coronavirus vaccine.

https://www.brecorder.com/news/40002339/biontech-pfizer-report-progress-in-coronavirus-vaccine-trial

Oil rises on U.S. crude stockpile draw, global manufacturing activity

Oil prices rose about 1% on Wednesday following a drawdown in U.S. crude inventories from record highs and a string of positive manufacturing data, but a surge in coronavirus cases tempered gains.

https://www.cnbc.com/2020/07/01/oil-markets-us-crude-inventories-coronavirus-in-focus.html

KASB Research

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