KASB Morning Shout March 16th, 2021

PKR closed at Rs. 156.99 against the USD on Monday (15 March), up 14 paisa compared to Friday’s closing of Rs. 157.13 against the greenback in the interbank currency market.

The government on Monday announced that the prices of petrol and diesel will remain unchanged for the month of March. According to the Finance Division, the price of petrol will remain unchanged at Rs111.90 per liter like last month

The Cabinet Committee on Energy (CCoE) Monday approved the summary presented by the Power Division to ensure effective management of circular debt. This covers the three year period from Financial Year 2020-21 to 2022-23, which describes the mechanism and initiative to address the issue and suggests an action plan to control the flow of circular debt with a monitoring matrix.

KASB Market View

Pakistan Stock Exchange breathed a sigh of relief. The battle between bulls & bears had apparently ended after Friday’s election of Senate Chairman, Mr Sanjrani. His chairmanship gives assurance to investors & the government to pass structural reforms needed to improve the economic web. Several good quality stocks had fallen 25-30% from their recent peak levels only to end on a very strong note today.

While the Prime Minister is directing to defer gas price hike till Budget to counter it with targeted subsidies, the necessary bills to be passed – SBP, SOE, Income Tax, NEPRA Acts – are needed to revive IMF plan & pave way for global bond issuance. Market is expecting painful reforms to be enacted sooner.

Emergence of third wave of Covid has led to reintroduced lockdown measures by Federal & Provincial governments. That may temporarily hamper economic activities but the brunt of the severity should be lesser. The positive inertia of today’s bullishness could taper tomorrow as investors rebalance their portfolios.

National News

Pakistani Rupee Hits Highest Value in Over a Year

PKR closed at Rs. 156.99 against the USD on Monday (15 March), up 14 paisa compared to Friday’s closing of Rs. 157.13 against the greenback in the interbank currency market. According to Arif Habib Limited, this is the strongest since March 9, 2020.

https://propakistani.pk/2021/03/15/pakistani-rupee-hits-highest-value-in-over-a-year/

Govt keeps petrol, diesel prices unchanged

The government on Monday announced that the prices of petrol and diesel will remain unchanged for the month of March. According to the Finance Division, the price of petrol will remain unchanged at Rs111.90 per liter like last month, while that of diesel will also remain unchanged at Rs116.8 per liter.

https://profit.pakistantoday.com.pk/2021/03/15/govt-keeps-petrol-diesel-prices-unchanged/

Summary on circular debt approved by CCoE

The Cabinet Committee on Energy (CCoE) Monday approved the summary presented by the Power Division to ensure effective management of circular debt. This covers the three year period from Financial Year 2020-21 to 2022-23, which describes the mechanism and initiative to address the issue and suggests an action plan to control the flow of circular debt with a monitoring matrix.

https://epaper.brecorder.com/2021/03/16/1-page/873942-news.html

Consumers enjoying power subsidy; Govt decides to reduce the number

The federal government has reportedly decided to trim the number of domestic electricity consumers enjoying a subsidy by 37 percent to 13.9 million from existing 22 million, sources close to Minister for Power told Business Recorder.

https://epaper.brecorder.com/2021/03/16/1-page/873941-news.html

NBP to Shutdown Two More Foreign Subsidiaries

National Bank of Pakistan (NBP) is working to scale down its foreign operations in different countries, including its subsidiaries and banks’ branches, according to the annual financial report.

https://propakistani.pk/2021/03/15/nbp-to-shutdown-two-more-foreign-subsidiaries/

Private sector retires a net sum of Rs.17.55 billion during the week

The non-government sector has retired a net sum of Rs.17.55 billion during the week ended March 05, 2021, which brings the cumulative net borrowing for ongoing fiscal year FY2021 to Rs.361.44 billion. The net borrowing as of prior week was recorded at Rs.378.99 billion.

https://mettisglobal.news/private-sector-retires-a-net-sum-of-rs-17-55-billion-during-the-week

FBR Increases Custom Values of Raw Materials Used in Soaps, Detergents and Cosmetics

The Federal Board of Revenue (FBR) from March 1, 2021, has revised upward customs values of raw materials used in the manufacturing of toiletry products like soaps, detergents, shampoos, body gel, hair creams, and cosmetics etc.

https://propakistani.pk/2021/03/16/fbr-increases-custom-values-of-raw-materials-used-in-soaps-detergents-and-cosmetics/

IPO Lock-up

-Word of the Day-

An IPO lock-up is a period after a company has gone public when major shareholders are prohibited from selling their shares, and typically lasts 90 to 180 days after the IPO.

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