Day: January 13, 2020

Car sales slump by 44% in first half

KARACHI: Car sales have slumped by 44 percent to 67,019 units in first half (July – December) of fiscal year 2019/2020 as compared with 120,066 units in the corresponding half of the last fiscal year.

Major drop witnessed in the sales of Honda Cars which fell 66 percent to 8,146 units during first six months of current fiscal year as compared with 24,278 units in the same period of the last fiscal year.

It was followed by sales of Indus Motors which fell by 57 percent to 14,175 units in first half of current fiscal year as compared with 32,631 units in the corresponding period of the last fiscal year.

The sales of Pak Suzuki Motors witnessed decline of 27 percent to 44,698 units during the period under review as compared with 63,157 units in the corresponding period of the last fiscal year.

Analysts at Topline Securities said that overall Pakistan car sales jumped by 23 percent MoM to 12,069 units in December 2019, however the rise was largely led by 49 percent MoM increase in sales of Pak Suzuki Motor Company (PSMC).

The other two major manufacturers, Indus Motor (INDU) and Honda Car (HCAR) sales dropped by 12 percent MoM and 23 percent MoM, respectively.

The increase in sales of PSMC was largely driven by the announcement of increase in car prices by the manufacturer in mid of December 2019, which was effective from January 1, 2020.

The decline reported by the other manufacturers was largely in line with the historical year-end phenomenon, where consumers generally delay their purchases until the new year.

On a YoY basis, weak demand dynamics was again evident from a 38 percent YoY fall in sales in December 2019, taking 1HFY20 decline to 44 percent YoY.

This is primarily attributable to 1) higher car prices mainly due to PKR devaluation and 2) higher interest rates.

PSMC sales were down 26 percent YoY in December 2019, while INDU’s sales declined by 56 percent YoY with Corolla sales falling by 50 percent YoY.

HCAR sales fell by 58 percent YoY during Dec-2019 with combined sales of City & Civic declining by 56 percent YoY.

Sale of motorcycles by Atlas Honda (ATLH) witnessed an increase of 6 percent YoY as sales clocked in at 85k units, however it recorded a decline of 11 percent MoM.

Tractor sales recorded a growth of 75 percent YoY with Millat Tractor (MTL) sales rising by 175 percent YoY. On the MoM basis, overall tractor sales were down 37 percent MoM.

Analysts expect recovery in car sales volumes from start of 2020 as we believe volumes would have bottomed out in December 2019.

January 13, 2020
Stock market ends flat after trading moves both ways

KARACHI: The stock exchange market ended with 12 points gain on Monday after trading moved both ways.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 43,219 points as against 43,208 points showing an increase of 12 points.

Analysts at Arif Habib Limited said that the market moved both ways with an opening of +83 points and oscillating between +246 points and -169 points during the session.

The session ended -12 points. Oil & Gas chain remained under pressure throughout the session, with PSO touching session’s low of 210, but bounced back in MoC, crossing 218.

Refineries also faced selling pressure, with the exception of BYCO that was recently added to benchmark Islamic Index.

Among banking sector scrips, BOP and SMBL realized trading volumes in excess of 20 percent of total traded volumes.

Overall, Banking sector stocks led the volumes with 123.6 million shares, followed by Cement (46.2 million) and Technology (41.1 million).

Among scrips, BOP topped the volumes with 34.9 million shares, followed by SMBL (34.9 million) and SILK (24.8 million).

Sectors contributing to the performance include Banks (+46 points), E&P (+18 points), Textile (+17 points), Tobacco (-32 points), Fertilizer (-31 points).

Volumes declined from 400.1 million shares to 366 million shares (-9 percent DoD). Average traded value also declined by 30 percent to reach US$ 69.7 million as against US$ 100 million.

Stocks that contributed significantly to the volumes include BOP, SMBL, SILK, TRG and TPL, which formed 35 percent of total volumes.

Stocks that contributed positively include PPL (+40 points), HBL (+31 points), BAFL (+24 points), TRG (+12 points) and BYCO (+12 points). Stocks that contributed negatively include UBL (-35 points), PAKT (-32 points), HUBC (-29 points), ENGRO (-24 points), and OGDC (-16 points).

January 13, 2020
Rupee eases two paisas amid higher import payment demand

KARACHI: The Pak Rupee ended down by two paisas against dollar on Monday amid higher demand for import and corporate payments.

The rupee ended at Rs154.85 to the dollar from last Friday’s closing of Rs154.83 in interbank foreign exchange market.

Currency dealers said that the market initiated with higher demand for dollars. The demand was higher due to opening of the market after two weekly holidays.

The foreign currency market was initiated in the range of Rs154.85 and Rs154.90. The market recorded day high of Rs154.89 and low of Rs154.84 and closed at Rs154.85.

The exchange rate in open market however, witnessed appreciation in rupee value. The buying and selling of dollar recorded at Rs154.70/Rs155.00 as compared with last Friday’s closing of Rs155.00/Rs155.40 in cash ready market.

January 13, 2020
Another key FBR official granted 12-day leave

The Federal Board of Revenue (FBR) is once again in the spotlight as another key official, Ms. Seema Shakil, a BS-21 officer of Inland Revenue Service, has been granted a 12-day leave.
(more…)

January 13, 2020
TPL Trakker signs LoI with Chinese companies for 25% equity sale

KARACHI: TPL Trakker Limited on Monday said that it has signed a Letter of Intent (LoI) with Chinese companies for sale of 25 percent share in equity.

In a notices to Pakistan Stock Exchange (PSX), announced that TPL Trakker Limited, a wholly owned subsidiary of TPL Corp Limited, has signed a Letter of Intent (“LoI”) with China Transportation HEAD New Technology (Shanghai)Co. Ltd and CCCC Industrial Investment Holding Co. Limited (“Potential Investors”).

The Potential Investors are interested in acquiring, at a minimum of 25 percent equity, in TPL Trakker Limited (“Proposed Transaction”) and the Parties are currently conducting due diligence of the Proposed Transaction.

January 13, 2020
No rift in economic team: FBR

ISLAMABAD: Federal Board of Revenue (FBR) has strongly rebuffed the reports about rifts in government economy team and due to this the chairman of the revenue authority is on leave.

The FBR in a statement on Monday said that FBR chairman Shabbar Zaidi is on a two weeks leave which is going to end this Friday.

He is likely to resume office on Monday and his first day business will include Prime Ministers interaction with all Pakistan traders.

The leave of Chairman FBR was necessisated by his annual medical check up in Karachi and some family commitments.

The Chairman as a part of economic team of the prime minister enjoys full confidence of the Prime Minister and his Advisor on Finance.

“Any rumours of any sort of rift in the economic team are utterly incorrect,” the FBR said.

January 13, 2020
Rs40,000 bearer prize bonds allowed conversion up to March 31

KARACHI: People can surrender Rs40,000 denomination bearer prize bonds by March 31, 2020 and exchange the amount with registered bonds or other given options.

The SBP stopped the issuance of Rs40,000 denomination prize bonds on June 24, 2019 and given deadline of March 31, 2020 for exchange the such denomination with other registered mode of investment.

Since the announcement of the central bank, the holders of bearer bonds had surrendered around Rs238 billion till November 2019.

The total investment Rs40,000 denomination bearer bonds peaked at Rs258 billion by May 2019, which reduced to around Rs20 billion by November 2019.

SBP stops banks selling Rs40,000 prize bonds, issues procedure for conversion into registered bonds

The SBP in a notification issued in June 2019 issued the following instructions regarding handling of Rs.40,000/- denomination National Prize Bonds are issued herewith for information, guidance and meticulous compliance:

a) National Prize Bonds of Rs.40,000/- denomination shall not be sold after June 24, 2019 and will not be encashed/redeemed after March 31, 2020.
b) No further draws of Rs.40,000/-denomination National Prize Bonds shall be held.
c) Cash payment for encashments of bonds is not allowed. However, the bond holder (s) shall have the following options to replace / encash these bonds:

1. Conversion of premium prize bonds (registered)

2. Replacement with special saving certificate (SSC)/Defence Saving Certificate (DSC)

3. Encashment at face value.

d) Appended below is the SOP for processing requests under the aforementioned options for compliance by all banks:

Conversion to Premium Prize Bonds (Registered)

i. The bonds can be converted to premium prize bonds (registered) through the 16 field offices of SBP Banking Services Corporation, and authorized branches of six commercial banks i.e. National Bank of Pakistan (NBP), Habib Bank Limited (HBL), United Bank Limited (UBL), MCB Bank Limited (MCB), Allied Bank Limited (ABL) and Bank Alflah Limited (BAFL).

ii. The bond holder shall be required to submit a written request for conversion of bearer bonds to premium prize bonds (registered) to be registered in his (her) name on the prescribed application.

iii. The bond holder shall also be required to submit prescribed applications forms for registrations / purchase of premium prize bond as per the procedure in vogue.

Replacement with the Special Saving Certificate (SSC)/Defence Saving Certificate (DSC)

i. The bonds can be replaced with SSC / DSC through the 16 field offices of SBP Banking Services Corporation, authorized commercial banks and National Savings Centers.

ii. All authorized commercial banks shall, therefore, accept requests for replacement of bearer bonds with SSC or DSC on the prescribed application form.

iii. The bondholder shall also be required to submit application form for purchase of SSC/DSC (SC-1) as per the prescribed procedure.

Encashment at Face Value:

i. The bonds will only be encashed by transferring the proceeds to the bond holder’s bank account through the 16 field offices of SBP Banking Services Corporation as well as the authorized commercial bank branches.

ii. All commercial banks shall receive requests for encashment of bearer bonds on the prescribed application form.

A copy of the application form, duly signed and stamped, shall be provided to the bondholder as an acknowledgement receipt.

The SBP said that it is needless to mention that the National Prize Bonds of Rs40,000 denomination tendered at the counters of banks shall be subject to through scrutiny to ascertain their genuineness. In this regard, details regarding the security features in Rs40,000 denomination National Prize Bonds are available online.

Moreover, the prize bonds encashed / replaced by general public may be surrendered to concerned SBP BSC office through respective regional office of the commercial banks. For the purpose, the regional office may intimate the SBP BSC office three days in advance so that necessary arrangements for receipt of the bonds can be made.

It is imperative to mention that a notice regarding the above / mentioned facilities must be displayed at prominent places within branch premises for awareness and information of general public.

January 13, 2020