The Pakistan stock market witnessed a subdued trading session on Friday as investors showed a lack of interest in blue-chip stocks.
(more…)Author: Mrs. Anjum Shahnawaz
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Rupee gains 10 paisas against dollar
KARACHI: The Pak Rupee gained 10 paisas against dollar on Friday following ease in demand for scheduled repayment for foreign loans.
The rupee ended Rs141.30 to the dollar from previous day’s close of Rs141.40 in interbank foreign exchange market.
The interbank foreign exchange market was initiated in the range of Rs141.35 and Rs141.40. The market recorded day high of Rs141.35 and low of Rs141.20 and closed at Rs141.30.
A day earlier the State Bank of Pakistan (SBP) in a meeting with representatives of Forex Association of Pakistan (FAP) had assured that repayment pressure against foreign loans was eased and rupee value would increased in coming days.
In the open market the exchange rates were remained stable.
The buying and selling of dollar was recorded at Rs142.50/Rs143.00, the same previous day’s level, in cash ready market.
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Past revenue-centric policies hurt exports: Prime Minister
ISLAMABAD: Prime Minister Imran Khan has said that the revenue-centric economic policies of past governments have badly damaged the competitiveness of Pakistan’s exports.
The past the revenue-centric economic policies with overemphasis on collection of revenues made the industry uncompetitive, the prime minister said while chairing 80th Meeting of the Board of Administrators of Export Development Fund (EDF) at Prime Minister’s Office, according to a statement on Thursday.
The prime minister said that economic future of the country was linked with enhancement of exports which so far have remained far below the actual potential.
The present government has made a paradigm shift in prioritizing the competitiveness of industry vis-à-vis revenue collection.
The prime minister while expressing serious concern over the mismatch in collection and releases of the EDF during past years, directed that timely release of EDF, which was indeed the exporters’ money, be ensured during the current year while a comprehensive system be devised for the future to ensure unhindered releases and optimum utilization of EDF for its mandated purpose.
The Board of Administrators of EDF, reconstituted the Finance Committee of the EDF Board which will be chaired by the Advisor to the Prime Minister on Commerce.
The meeting approved budget and the schedule of activities to be held during TEXPO Exhibition 2019 at Lahore Expo Centre on 11th -14th April 2019.
It was also decided during the meeting that the EDF Board would also include Secretary Textile Division, as its member, to ensure representation of the textile sector, being the major contributor towards exports of the country.
Talking to the leading businessmen, the Prime Minister stated that the Government would continue taking the business community on-board in policy formulation process and their feedback would help the government further improve policy framework and to extend maximum facilitation to the exporters and the businessmen of the country.
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KSE-100 declines by 319 points on selling pressure
KARACHI: The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) witnessed decline of 319 points on Tuesday owing to selling pressure.
The index closed at 38,036 points as against 38,355 points showing a decline of 319 points.
Analysts at Arif Habib Limited said that the market went down eventually after making a positive stride of 203 points in the beginning but lost 356 points (unadjusted) by the end of session.
Blue chips remained under selling pressure and despite high trading volume in scrips like LUCK, the scrip saw heavy selling pressure.
Volumes were largely seen in UNITY right (63M) as compared with total market volume of 144M shares. Last half hour of trading saw selling pressure increased which was mainly contributed by HBL and UBL. HBL saw buying interest close to lower circuit.
Sectors contributing to the performance include Banks (-117 points), O&GMCs (-40 points), Power (-37 points), E&P (-19 points), Textile (-16 points).
Volumes increased again from 65.9 million shares to 144.4 million shares (+119 percent DoD). Average traded value also increased by 39 percent to reach US$ 27.7 million as against US$ 19.9 million.
Stocks that contributed significantly to the volumes include UNITYR1, KEL, UNITY, MLCF and HUBC, which formed 62 percent of total volumes.
Stocks that contributed positively include PSEL (+21 points), FFC (+8 points), POL (+5 points), SHFA (+4 points), and TRG (+2 points). Stocks that contributed negatively include HBL (-53 points), HUBC (-23 points), PSO (-19 points), MCB (-16 points) and SNGP (-13 points).
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Equity market falls by 295 points on policy rate hike -
Headline inflation increases by 9.4pc in March
ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) has increased by 9.4 percent on year-on-year basis in March, 2019 as compared to an increase of 8.2 percent in the previous month and 3.2 percent in March 2018.
The Pakistan Bureau of Statistics (PBS) on Monday said that on month-on-month basis, it increased by 1.4 percent in March 2019 as compared to an increase of 0.6 percent in the previous month and an increase of 0.3 percent in corresponding month i.e. March 2018.
Core inflation measured by non-food non-energy CPI (Core NFNE) increased by 8.5 percent on (YoY) basis in March 2019 as compared to an increase of 8.8 percent in the previous month and 5.8 percent in March 2018.
On (MoM) basis, it increased by 0.5 percent in March 2019 as compared to an increase of 0.2 percent in previous month, and an increase of 0.7 percent in corresponding month of last year i.e. March 2018.
Core inflation, measured by 20 percent weighted trimmed mean CPI (Core Trimmed) increased by 7.9 percent on (YoY) basis in March 2019 as compared to 7.7 percent in the previous month and by 4.1 percent in March 2018. On (MoM) basis, it increased by 0.4 percent in March 2019 as compared to an increase of 0.2 percent in the previous month and an increase of 0.2 percent in corresponding month of last year i.e. March 2018.
Sensitive Price Indicator (SPI) inflation on YoY basis increased by 8.8 percent in March 2019 as compared to an increase of 6.5 percent a month earlier and a decrease of 1.8 percent in March 2018.
On MoM basis, it increased by 1.6 percent as compared to an increase of 1.5 percent in the previous month and a decrease of 0.6 percent in corresponding month of last year i.e. March 2018.
Wholesale Price Index (WPI) inflation on YoY basis increased by 12.6 percent in March 2019 as compared to an increase of 11.0 percent a month earlier and an increase of 3.6 percent in March 2018.
WPI inflation on MoM basis increased by 1.7 percent in March 2019 as compared to an increase of 0.9 percent a month earlier and an increase of 0.2 percent in corresponding month of last year i.e. March 2018.
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Equity market falls by 295 points on policy rate hike
KARACHI: The equity market fell by 295 points on Monday owing to hike in discount rate by 50 basis points.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,355 points as against 38,650 points showing a decline of 295 points.
Analysts at Arif Habib Limited said that the market dipped today on the back of recent rate hike by SBP that increased the discount rate by 50bps to 10.75 percent.
As an aftermath, the stock prices adjusted downwards although the decision of rate hike was in line with expectation.
Exceptions to downward price adjustment were mainly banking sector, which has a positive correlation to interest rate hikes.
Volume was led by UNITY right, which has been in the limelight since last week. Other than that the volumes were generally seen in Bank, Cement and Power Sectors.
Sectors contributing to the performance include Power (+47 points), Miscellaneous (+22 points), Fertilizer (-83 points), E&P (-56 points), Banks (-56 points), Cement (-53 points), Pharma (-30 points).
Volumes declined significantly from 137.7 million shares to 65.9 million shares (-52 percent DoD). Average traded value also declined by 46 percent to reach US$ 19.9 million as against US$ 36.8 million.
Stocks that contributed significantly to the volumes include UNITYR1, BOP, SNGP, KEL and MLCF, which formed 47 percent of total volumes.
Stocks that contributed positively include HUBC (+72 points), PSEL (+23 points), BAFL (+7 points), EFUG (+7 points), and SYS (+6 points). Stocks that contributed negatively include PPL (-35 points), LUCK (-28 points), ENGRO (-28 points), BAHL (-25 points) and DAWH (-22 points).
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Inflation for essential items rises by 11.9 percent
ISLAMABAD: The prices of essential items have increased by 11.90 percent by week ended March 28, 2018 as compared with the same week last year.
The Sensitive Price Indicator (SPI) – the barometer to gauge price movement of 53 essential items – showed that inflation had increased for all the income group from Rs8,000 / month to Rs35,000 per month and above.
The income group falling between Rs18,001 to Rs35,000 faced inflationary pressure by 12.85 percent. Meanwhile the inflation for the income group Rs35,000 and above was recorded at 16.14 percent.
However, the SPI based inflation fell 0.36 percent when compared with previous week.
During the week ended March 28, 2019 the average prices of 20 items registered increase as compared with week ended March 21, 2019, which included: potatoes (6.5 percent); Onions (2.52 percent); Bananas (1.82 percent); Pulse Moong (washed) (1.47 percent) etc.
However, average prices of nine items registered decline during the week under review, which included: tomatoes (32.57 percent); Eggs (6.78 percent); LPG cylinder (2.7 percent) etc.
While average prices of 24 items were remained unchanged during the week.
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Printing details, ingredients on imported goods: KCCI demands reviewing notification implementation date
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has demanded the commerce ministry to review the date of implementation of a notification regarding printing of details and ingredients on the imported goods.
In a statement on Monday KCCI President Junaid Esmail Makda requested Advisor to PM for Commerce Abdul Razak Dawood to instruct relevant department to inform all concerned about the implementation date of SRO 237(I)/2019 i.e. July 1, 2019 to prevent blockage of clearance of pending consignments and direct the Ministry of Commerce & Textile (Commerce Division) to issue necessary amendment in the SRO stating the effective date as 1st July’2019.
In a statement issued, President KCCI stated that SRO 237, which has been finalized and implemented without any consultation with the business community and other stakeholders, was not acceptable in its present state and it has to be reviewed in consultation with all stakeholders.
Referring to a letter sent to PM’s Advisor and the discussions held with Chairman Businessmen Group & Former President KCCI Siraj Kassam Teli about the implementation of SRO 237(I)/ 2019 dated February 19, 2019, President KCCI said that although the PM’s Advisor clarified that the said SRO will be implemented from July 1, 2019 but no notification carrying the exact date of implementation has been issued so far which has created a confusing situation and resulted in blockade of containers at the ports which is totally contrary to government’s resolve towards the ease of doing business.
He demanded that the losses suffered by importers on account of demurrage and detention due to the confusion must be waived off to provide some relief to perturbed traders who have been constantly approaching KCCI to seek assistance.
“It is a matter of grave concern that Customs Authorities remain confined to SRO 237 and were not paying any attention to the hardships being faced by traders hence, the Ministry of Commerce must issue the clarification about the implementation date so that SRO 237 is not misused to create problems for traders”, he added.
He said that since the effective date of 1st July’2019 was not mentioned in the SRO.237, in legal terms date of issue has been interpreted as the effective date, and customs officials at various levels have held the clearance of cargo on pretext of seeking clarification from FBR which led to delays and resulted in raising the costs of demurrage and detention to the importers.
He was of the opinion that the implementation of said SRO from July 1, 2019 has provided sufficient time period of more than three months to foreign manufacturers of food stuffs to comply with recent amendments in the Import Policy Order 2016.
According to SRO 237, it has been made mandatory that the ingredients and details of the imported food products (e.g. nutritional facts, usage instructions etc.) shall be printed in Urdu and English languages on consumer packaging while the logo of Halal certification body shall also be printed on the consumer packaging and the labelling shall not be in the form of a sticker, overprinting, stamp or scratched label.
Moreover, the importers have been further advised that the shipment shall be accompanied by a Halal Certificate issued by Halal Certification Body, accredited with an Accrediting Body which is a member of International Halal Accreditation Forum (IHAF) or Standard Metrology Institute for Islamic Countries.
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Equity market continues declining trend
KARACHI: The equity market continued is declining trend on Monday and lost 403 points under selling pressure.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 38,129 points as against 38,532 points showing a decline of 403 points.
KSE-100 index continued its downward trend that it picked earlier last week and gave no regard to the initial signs of recovery seen on Friday.
Unlike past several sessions, the market opened on a downbeat with -12 points and the number kept growing to the downside till session’s end.
Market saw a total draw down of -479 points and closed -448 points (unadjusted).
Also, the traded volume registered lowest levels in recent times.
Major contribution to traded volumes was observed in Power Sector (KEL), followed by Banks (BOP, BAFL).
Prime Minister’s reference to large oil & gas discovery in Indus Offshore didn’t entice investors to take a large bet on OGDC/PPL and remained content on market price.
Sectors contributing to the performance include E&P (-98 points), Cement (-64 points), Fertilizer (-63 points), Power (-29 points), Banks (-25 points).
Volumes declined significantly to 56.4mn shares from 84.6mn shares (-33 percent DoD). Average traded value also declined by 40 percent to reach US$ 19mn as against US$ 31.5mn.
Stocks that contributed significantly to the volumes include KEL, WTL, BOP, OGDC and BAFL, which formed 32 percent of total volumes.
Stocks that contributed positively include PMPK (+10 points), MUREB (+5 points), PAKT (+4 points), HMB (+3 points), and MCB (+2 points). Stocks that contributed negatively include OGDC (-35 points), LUCK (-33 points), PPL (-29 points), POL (-24 points) and ENGRO (-21 points).
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Rupee slides by five paisas against dollar
KARACHI: The Pak Rupee ended down by 5 paisas against the US dollar on Monday despite reports of inflows from China.
The rupee ended Rs140.29 to the dollar from last Friday’s close of Rs140.24 in interbank foreign exchange market.
The interbank foreign exchange market was initiated in the range of Rs140.25 and Rs140.30.
The market recorded day high of Rs140.30 and low of Rs140.28 and closed at Rs140.29.
Currency experts said that the rupee was under pressure due to ongoing talks of the government with IMF for new loan program.
The exchange rate in the open market was remained stable.
The buying and selling of dollar was recorded at Rs140.80/Rs141.30, the same level of last Friday’s in cash ready market.