Pakistan Daily Economy Update - 27 January

Transcription

1. Jan . 27, 2017 KCCI - eBulletin Stocks eclipse 50,000 points level; market cap hits record high of over PKR 10Tn Pakistan Stock Exchange (PSX) benchmark KSE-100 share index on 26th Jan’17 closed above the historic 50,000 points level for the first time, finally closed at 50,192.36 points while market capitalization of listed shares also hit a record high of over PKR 10Tn. It gained 0.88% or 435.59 points. While, the ready market volumes stood at 449.71Mn as compared to 459.44Mn shares a day earlier. The News. Interior minister suspends NADRA-MasterCard agreement Interior Minister Chaudhry Nisar Ali Khan has suspended an agreement between MasterCard and the National Database and Registration Authority (NADRA) after issues regarding security of national database and violations of laid-down procedures were highlighted in a media report. NADRA did not have a mandate to render financial services and its endeavor for the sake of earning money may compromise security of the national database. NADRA administration had not properly briefed the minister about the pros and cons of the agreement. The News. Dec 2016: NEPRA slashes power tariff by PKR 2.21 per unit Nepra has decided to cut electricity tariff by PKR 2.21 per unit for Dec’16 in a bid to pass the impact of cheaper imported fuel prices on to consumers of state-owned power distribution companies. However, K-Electric and agricultural consumers as well as domestic users that consume less than 300 units a month will not be enjoying the tariff relief. According to the govt., these consumers are already subsidized. Tribune. Prime Minister hopes World Bank to play role in resolving water disputes with India In a meeting, while thanking CEO (IBRD/IDA) World Bank Group Kristalina I. Georgieva on her first bilateral visit as CEO to Pakistan, Prime Minister Nawaz Sharif said that he hopes that the World Bank would play a lead role in dispute resolution between India and Pakistan regarding construction of hydro-electric plants through establishing an arbitration court. The Prime Minister discussed the resolution of disputes, specifically Kishenganga and Ratle Hydroelectric plants, and water reservoirs on the western rivers by India in violation of the Indus Water Treaty, 1960, to which the World Bank was a signatory. The World Bank CEO stated that conditions are right for investment in Pakistan and there is marked improvement in economic condition of Pakistan.BR. SBP may keep policy rate unchanged SBP will announce Monetary Policy Statement for next two months on Jan. 28, 2017 (tomorrow). The SBP has been maintaining key policy rate at 5.75% since May 2016, when the policy rate was slashed by 25 basis points (bps) on improved macroeconomic conditions. It is expected that the SBP will keep the policy rate unchanged at current level as the country's external account is worsening. BR. CPEC projects stoke fears of rising debt Finance Standing Committee has expressed concern over expected considerable increase in circular debt after CPEC energy projects become operational. In Finance Standing Committee meeting, NBP briefed about opening its branch in China. The committee was further briefed that China Bank will also open a branch in Pakistan in March or June 2017, adding that Pakistan has allowed permission to the bank to open branch for CPEC projects. BR. CCOP likely to approve divestment of 5% OGDCL stake The Cabinet Committee on Privatisation (CCOP) will be convened on Jan.26, 2017 (today) for approving up to 5% OGDCL shareholding through Pakistan Stock Exchange along with approval for 18.39% divestment of govt. shareholding in Mari Gas Company Ltd. The agenda items of upcoming CCOP meeting also includes privatisation of the SME Bank and resolution of issues of Kot Addu Power Company. BR. NTDC working towards depriving KE of 650MWs Disappointed with the silence of Water and Power Ministry, National Transmission and Despatch Company (NTDC) has sought help from Nepra to bring an end to supply 650MW electricity to Karachi Electric (KE) from the national grid, without any agreement. BR. PIA, Turkish Airlines expand cooperation in connecting flights Pakistan International Airlines (PIA) and Turkish Airlines have agreed to expand cooperation in flying each other’s passengers to next destinations of connecting flights from 1st Feb’17. Turkish Airlines would market PIA flights from Karachi and Islamabad to Dubai, Abu Dhabi and Muscat and from Lahore to Dubai and Abu Dhabi with its own airline code and flight number. Tribune. K-Electric makes excessive collection of PKR 62Bn The Ministry of Water and Power has revealed that K-Electric has pocketed PKR 62Bn from power consumers and has advised the Nepra to make adjustment in the new tariff in order to pay the excessive amount back to the consumers. The ministry has also called for a strict accountability of those responsible for causing such a colossal loss to the Karachi consumers. Tribune. NA committee Okays Companies Bill 2016 The National Assembly’s Standing Committee on Finance has approved Companies Bill 2016 after a heated debate. Key committee members belonging to the ruling party criticized SECP for not taking the recommendations of the NA body seriously. Companies Bill 2016 became controversial after the government promulgated it as an ordinance. However, a resolution in the Senate abolished it. Dawn. Forex reserves up $ 23.24Bn The country’s foreign exchange reserves rose to $ 23.24Bn during a week ended 20th Jan’2017 from $ 23.19Bn in previous week. The forex reserves of the central bank increased $ 23Mn to $ 18.38Bn as compared to $ 18.36Bn a week ago. The foreign exchange reserves of commercial banks stood at $ 4.86Bn against $ 4.83Bn during the last week. Tribune. Pakistani, Afghan visa applicants to face extreme vetting: Trump US President Donald Trump has indicated that both Pakistan and Afghanistan will be among the countries whose citizens will have to go through an “extreme vetting” process before entering the United States. He also said that he was going to sign an order placing a ban on people from seven Muslim-majority countries entering the US but it was delayed, apparently because of a huge public backlash. Dawn. Economic Indicators List of Indicators Date / Period Unit Value Change Daily USD-Interbank 26-Jan PKR 104.85 0.00% USD-Open MKT 26-Jan PKR 107.55 0.09% KSE-100 index FIPI 26-Jan Pts. $ Mn 50,192 4.05 0.88% NM** $/bbl 53.84 1.80% $/oz 1,191 -0.72% Crude (MA'17) 26-Jan 26-Jan Gold (FE'17) 26-Jan Gold (10g) Local 26-Jan PKR 43,285 -0.10% Silver (FE'17) 26-Jan $/oz 16.82 -0.88% Cotton(KHI)-40 kg 26-Jan PKR 7,111 -0.75% Kibor-6M 26-Jan % 6.12% 0.01% Forex Reserves 20-Jan $ Bn 23.25 WoW 0.24% Remittances Jul-Dec 16 $ Bn 9.46 -2.27% Exports* Jul-Dec 16 $ Bn 9.91 -3.82% Imports* Jul-Dec 16 $ Bn 24.40 10.10% Trade Balance* Jul-Dec 16 $ Bn -14.49 -22.20% Current Account Avg. CPI-FY17* Jul-Dec 16 $ Mn % -3,585 3.88 -92.23% YoY Jul-Dec 16 Nov-16 Discount Rate % 5.75 Sources: KCCI Research, PMEX , NCCPL, KSE, SBP, PBS* ** Not Meaningful WoW= week on week; YoY=Year on Year Major Currencies 175 165 155 145 GBP, 25-Jan-17, 131.6 135 125 115 EUR, 25-Jan-17, 112.5 USD, 25-Jan-17, 104.8 105 95 85 75 Jan-16 Apr-16 USD Jul-16 GBP Oct-16 Jan-17 Source: KCCI Research ; Oanda.com EUR Quote of the Day "Never make negative comments or spread rumors about anyone. It depreciates their reputation and yours." Brian Koslow Chart of the Day LSM Constituent Growth during Jul. - Nov.'17 Iron & Steel Products Electronics Non Metallic Mineral Products Pharmaceuticals Automobiles Fertilizers Food, Beverages & Tobacco Paper & Board Rubber Products Textile Coke & Petroleum Products Chemicals Engineering Products Leather Products Wood Products -97.08% 14.53% 14.52% 10.48% 7.64% 5.57% 4.37% 3.78% 3.76% 0.47% 0.02% -1.68% -3.60% -5.86% -17.85% -120% -100% -80% -60% Values in (%) -40% -20% 0% 20% 40% Source: KCCI Research, PBS 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 sources believed to be reliable and in good faith. Such information has not been independently verified. icon represents the sole viewpoint of the KCCI R&D Cell, and is stated to enrich the readers' understanding of the news item. The R&D Dept. bears no responsibility for its correctness or accuracy. 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