KASB Morning Shout March 29th, 2021

Pakistan’s market continued to inch forward the past week, gaining 620pts and settling at 45,522pts. Dimming political noise reinforced investor confidence towards the market, compelling investors to build fresh positions. Moreover, the reinstatement of the IMF program also assisted the index in recovering lost grounds.

KASB Market View

This week, the market may remain wary of the sharp rising in COVID-19 cases led by the spread of the infectious ‘UK variant’. In light of the proliferation, NCOC has implemented stricter restrictions to curb the spread. Nevertheless, PM Imran Khan has ruled out a total lockdown. With political noise easing further, we believe the index may continue to test higher levels. We maintain our preference for cyclical stocks including cements and automobiles.

National News

$1.336bn loan accords inked with WB for 7 projects

Pakistan and the World Bank Friday signed loan agreements of seven projects worth around $1.336 billion. The accords focus on social protection, disaster and climate risk management, improving infrastructure for resilience, agriculture and food security, human capital development and governance sectors.

https://epaper.brecorder.com/2021/03/27/1-page/875842-news.html

Payment to IPPs in limbo due to NAB investigation

National Accountability Bureau’s (NAB’s) investigation against Independent Power Producers (IPPs) has reportedly put first installment of 40 per cent of agreed amount of over Rs 400 billion in limbo, well-informed sources old Business Recorder.

https://epaper.brecorder.com/2021/03/27/1-page/875844-news.html

Attock Cement gets Rs9.7bn credit line

Attock Ce­­ment Pakistan Ltd (ACPL) has recently concluded the financial close of syndicated term finance facility of Rs9.7 billion under the State Bank Of Pakistan’s Temporary Eco­­­­nomic Refinance Facility and Long-Term Financing Faci­lity through a consortium of banks led by MCB Bank Ltd, who acted as agent bank on behalf of the other financiers, which includes Allied Bank Ltd and the Bank of Punjab.

https://www.dawn.com/news/1614972/attock-cement-gets-rs97bn-credit-line

Dasu power project to be completed ahead of time, says Wapda

Wapda’s chairman Left-Gen (retd) Muzzamil Hussain has expressed satisfaction over the progress of work on the 4300 megawatts Dasu Hydropower Project.

https://www.thenews.com.pk/print/810515-dasu-power-project-to-be-completed-ahead-of-time-says-wapda

FBR empowered to conduct tax audit of IT firms

The government has empowered the Federal Board of Revenue (FBR) to conduct audits of exporters of information technology and IT-enabled services, officials said on Friday.

https://www.thenews.com.pk/print/810440-fbr-empowered-to-conduct-tax-audit-of-it-firms?_ga=2.119403913.1430934081.1616924794-2026443033.1524057990

SBP drafts digital bank regulatory framework

The State Bank of Pakistan (SBP) on Friday invited feedbacks from all the stakeholders on a proposed digital bank regulatory framework to promote online financial transactions.

https://www.thenews.com.pk/print/810447-sbp-drafts-digital-bank-regulatory-framework?_ga=2.39205667.1430934081.1616924794-2026443033.1524057990

KE to receive additional 450MW till March-end

The government is expected to supply additional 450 megawatts of electricity to K-Electric by the end of this month to help it overcome power outage in summer, power minister said on Saturday.

https://www.thenews.com.pk/print/810826-ke-to-receive-additional-450mw-till-march-end?_ga=2.84922777.1430934081.1616924794-2026443033.1524057990

Bank deposits grow 17% to Rs17.25tr in Feb

Pakistani banks have appeared to be one of the leading beneficiaries of Covid-19, as they have not only made higher safe lending to the cash-strapped government to help bridge its budget deficit but the lending has helped the banks grow their deposits as well.

https://tribune.com.pk/story/2291832/bank-deposits-grow-17-to-rs1725tr-in-feb

Increasing fears of NAB: 43.8 pc of total allocated funds for PSDP utilized

In the wake of increasing fears of National Accountability Bureau (NAB), the federal government could only utilise Rs 283 billion or 43.8 percent of the total Rs 650 billion allocated funds for the Public Sector Development Programme (PSDP) during the current fiscal year.

https://www.thenews.com.pk/print/811104-increasing-fears-of-nab-43-8-pc-of-total-allocated-funds-for-psdp-utilised

Imran asks SBP, NBP to soften housing loan terms

Prime Minister Imran Khan has directed the State Bank of Pakistan (SBP) and National Bank of Pakistan (NBP) to soften terms of housing loan so that people can get maximum benefit of the government’s flagship Naya Pakistan Housing Programme (NPHP) to build their houses.

https://www.dawn.com/news/1615209/imran-asks-sbp-nbp-to-soften-housing-loan-terms

Inferior Good

-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.

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