Pakistan Daily Economy Update - 11 August

Transcription

1. Aug . 11, 2017 KCCI - eBulletin Jul-17 Remittances $ Bn 1.54 Jul-17 Exports* $ Bn 1.63 Jul-17 Imports* $ Bn 4.84 Jul-17 Trade Balance* $ Bn -3.20 Jul-Jun 17 Current Account $ Mn -12,098 Foreign Direct Inv. $ Bn 2.41 Jul-Jun 17 Jul-May 17 LSM Growth* % 5.69 % 2.91 Jul-17 Avg. CPI-FY17* Discount Rate % 5.75 Jul-17 WoW= week Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful on week; Major Currencies 145 GBP, 10-Aug-17, 136.6 135 125 EUR, 10-Aug-17, 123.6 115 105 95 Aug-16 USD Forex reserves plunge The country's total liquid foreign exchange reserves fell sharply by $ 279Mn to $ 20Bn as on Aug. 4, 2017 compared to $ 20.28Bn on Jul. 28, 2017. The decrease in reserves was on account of external debt servicing and other official payments. During the period under review, the SBP's reserves declined by $ 299Mn to $ 14.40Bn at the end of last week down from $ 14.70Bn. However, reserves held by the banks posted an increase of $ 20Mn to $ 5.61Bn at the end of last week compared to $ 5.59Bn a week earlier. BR. USD, 10-Aug-17, 105.2 Nov-16 GBP EUR Feb-17 May-17 Aug-17 Source: KCCI Research ; Oanda.com Quote of the Day "If you never venture beyond what you know... You’ve spawned your own limitations." Sumner Redstone Chart of the Day R E M I T T A N C E R E C E I V E D FROM T O P 1 0 C O U N T R I E S (1MFY18 VS. 1MFY17) 300 200 100 16.2 13.1 400 19.7 13.6 500 61.9 58.9 PSX replaces two companies in KSE-30 Index The Pakistan Stock Exchange’s (PSX) management has announced replacing two companies in KSE-30 index, the second most monitored index by investors to track their investment decisions. The two new companies in the index are International Steel Limited and Millat Tractors Limited. The outgoing two constituents are Dawood Hercules Corporation Limited and Mari Petroleum Company Limited. The swaps were made during the bi-annual exercise of re-composition of the free-float (shares held by public) market capitalization based index of top 30 listed firms. Tribune. 20.00 Forex Reserves Auto sales surged in Jul’17 Sales of locally assembled cars, including light commercial vehicles (LCVs), vans and jeeps, surged by 41% in Jul‘17 to 19,577 units. Pak Suzuki Motor Company led the pack, with 37% increase in total sales in Jul‘17 due to strong sales of WagonR, up 77%, YoY. New Cultus model sales swelled by 66% while Ravi sales by 41%. Dawn. Cotton estimates revised downward The Cotton Crop Assessment Committee (CCAC) has revised cotton production estimates downward by over 12% to 12.6Mn bales against the initial estimate of 14.04Mn bales for the current season (2017-18), after missing the sowing target. As a result, Pakistan would miss the production target of 14.04Mn bales by around 1.5Mn bales. BR. $ Bn Crude (AU'17) Gold (JY'17) Gold (10g) Local Silver (JY'17) Cotton(KHI)-40 kg Kibor-6M 408.8 378.7 \ Kapco mulls acquiring 17.37% stake in Hubco Kot Addu Power Company (Kapco), is mulling to acquire 17.37% stake in Hub Power Company (Hubco). The proposed acquisition would cost Kapco approximately PKR 24Bn. Subject to requisite corporate and regulatory approvals, a strategic proposal is to be considered by the board of directors of Kapco; if considered appropriate, bid will be submitted to acquire 172.58Mn shares constituting 14.91% of Hubco, which are being offered by Dawood Hercules Corporation. And additional 28.50Mn shares constituting 2.46% of Hubco is also being offered by some other shareholders. The News. 4-Aug 0.00% 0.00% -0.79% NM** -2.22% 0.73% 0.59% 1.21% 0.00% 0.00% WoW -1.38% YoY 16.04% 10.58% 36.74% -55.46% -148.57% 4.58% 30.9 26.9 Chinese envoy says CPEC’s early harvest projects come to fruition Terming CPEC a win-win scenario for both China and Pakistan, the Chinese ambassador to Pakistan stated that there is no country other than China that wants to see a stronger, stable and developed Pakistan. He was delivering an exclusive talk on the topic of “Pakistan-China Relations: CPEC and Beyond CPEC. He said CPEC has entered the stage of giving some early harvest. The News. Change Daily 105.40 106.80 45,634 -6.08 48.52 1,287.4 43,628 17.11 6,912 6.15% 45.9 26.3 Bilateral trade: China, Pakistan take step towards correcting BoP Pakistan and China have signed 38 agreements/MoUs, worth $ 325Mn to promote their bilateral trade. These signed documents have paved the way for enhancing sale of Pakistani products in the Chinese market. The total value of agreements is 17% of China's gross import from Pakistan. The products to be imported from Pakistan include seafood, leather, marble products, and coarse copper. Chinese Ambassador Sun Weidong said that the export from Pakistan to China has increased from $ 550Mn to $ 1.91Bn in the recent years, and net increase of 248%. BR. Value PKR PKR Pts. $ Mn $/bbl $/oz PKR $/oz PKR % 53.4 57.5 K-Electric board gives go-ahead for $ 1Bn power plant K-Electric’s board of directors has given the go-ahead for setting up a 900MW gas-fired power plant worth $ 1Bn. The board, however, noted with concern that favorable result of the company’s review petition on the Multi Year Tariff (MYT) determination 2017, pending with Nepra, is critical for financing and development of this mega project. Nepra may announce the revised tariff in a week or 10 days. Earlier this year, Nepra announced a fixed (cost-based) tariff for KElectric consumers for a period of seven years. The tariff was PKR 3.50 per unit lower than the previous tariff. Tribune. Unit 10-Aug 10-Aug 10-Aug 10-Aug 10-Aug 10-Aug 10-Aug 10-Aug 10-Aug 10-Aug 193.7 169.7 SBP seeking LEAs to curb illegal money transfers The central bank has sought help of law enforcement agencies to stop money laundering as well as the menace of cash smuggling across borders in a bid to boost remittance inflows to the country. Weaker remittances along with sluggish exports continue to put pressure on balance of payments, increasing concerns for the central bank. The banker, wishing to remain anonymous also said the SBP also asked banks to activate all ways and means to increase remittance flows through banking channels. The News. Date / Period 199.2 143.6 FY18: inflows of workers’ remittances up 16% Inflows of workers' remittances, sent by overseas Pakistanis, posted a healthy increase of 16% to $ 1.54Bn during Jul.’17 from $ 1.33Bn sent during Jul.’16 depicting an increase of $ 214Mn. A major surge was observed from all major corridors, including Saudi Arabia, UAE, US and UK. However, inflows of workers' remittances arrived in Jul.’17 are 16% less than Jun.’17, while some 16% more than Jul.’16. BR. List of Indicators USD-Interbank USD-Open MKT KSE-100 index FIPI 334.6 293.7 Trade deficit widens Pakistan's trade deficit increased to $ 3.20Bn in Jul.’17, up by 55.46% from $ 2.06Bn in Jul.’16. Exports have increased by 10.58% to $ 1.63Bn from $ 1.48Bn in the same month last year, while imports have increased by 36.74% to $ 4.84Bn from $ 3.54Bn. Month-on-month basis, exports declined by 14.71% in Jul.’17 from $ 1.91Bn in Jun.’17 while imports increased by 6.64% from $ 4.53Bn in Jun.’17. As a result trade deficit in Jul.’17 over previous month increased by 22.20% from $ 2.62Bn in Jun.’17. BR. Economic Indicators 0 1MFY18 1MFY17 Source: KCCI Research, SBP Values in $ Mn Disclaimer This report has been prepared by KCCI Research & Development Cell. The information contained herein have been compiled or arrived at based upon information obtained from Sindh govt. issues notification sources believed to be reliable and in good faith. Such information has not been Sindh govt. has issued the notification revoking the applicability of the National Accountability Ordinance (NAO) 1999 in independently verified. icon represents the sole viewpoint of the KCCI R&D Cell, and is stated to enrich the readers' the province. With NAO revoked, the relevant powers are now being accorded to Sindh Accountability Agency. BR. understanding of the news item. The R&D Dept. bears no responsibility for its correctness or accuracy. Contact: res@kcci.com.pk