MARKET REVIEW
The index lost its momentum in the current week as results announced by companies failed to excite investors. Furthermore, political uncertainty still steaming in the background kept investors at bay. This led the market down 0.8%WoW to close at 49,300 points level. Foreigners remained net sellers in the week with a net FIPI outflow of USD10.7mn. However, trading activity picked up in the week with ADT and ADTV witnessing an increase of 29.1%WoW and 7.4%WoW, with a shift towards small cap scrips.
During the week, Pakistan Bureau of Statistics (PBS) released textile export data for the month of Mar’17 wherein textile exports depicted an increase of 6.2%YoY. National Fertilizer Development Centre (NFDC) released its monthly numbers for Mar’17 where urea off-take witnessed an increase of 82%YoY.
OUTLOOK
Conclusion of result season will generally weaken market activity and performance in the following weeks. However, with Pakistan’s classification into MSCI-EM just round the corner (May’17), foreign activity may pick up in the coming weeks.
NEWS THIS WEEK
ECONOMIC INDICATORS & DATA POINTS
TAX COLLECTION TARGET FOR FY17 MAY BE RS4,007BN (THE NEWS): Government is considering fixing the tax collection target of Rs4,007bn for the next budget 2017-18 in a bid to ensure financial discipline.
PAKISTAN SEEKING USD700MN FOR BALANCE OF PAYMENT SUPPORT (TRIBUNE): Pakistan is seeking USD700mn for balance of payment support in the next two months from the Asian Development bank.
IMPORTS OF OIL, FOOD, MACHINERY SURGED TO USD21BN IN 9MFY17 (DAWN): Combined import bill of food, oil and machinery ballooned to a record USD21.097bn in the 9MFY17 up 30% YoY.
GOVT EYES 6.2% GROWTH RATE IN NEXT FINANCIAL YEAR (THE NATION): Government is likely to fix the country’s GDP growth at 6.2% and budget deficit at 4% for the next financial year 2017-18.
GOVT. TO SET UP PAKISTAN INFRASTRUCTURE BANK WITH ACCESS TO USD1 BILLION (THE NEWS): The government will set up Pakistan Infrastructure Bank with a paid-up capital of one billion dollars to finance private investors in development projects, said Finance Minister Ishaq Dar.
AMNESTY FOR OWNERS OF OFFSHORE COMPANIES IN THE OFFING (THE NEWS): Tax authorities on Wednesday informed the National Assembly Standing Committee on Finance that they were considering proposals to introduce Amnesty Scheme for owners of offshore companies and properties abroad by paying tax at different rates.
SECTOR AND CORPORATE HIGHLIGHTS
HONDA ATLAS LAUNCHES BR-V IN PAKISTAN, STARTS FROM RS2.23M (TRIBUNE): Honda Atlas launched its first locally produced sub-compact SUV comprising 45% local components, stated the company.
FBR LOOKS TO MILK MORE TAXES FROM DAIRY SECTOR (TRIBUNE): Tax authorities have proposed to slap 10% sales tax on tea whitener from fiscal year 2017-18.
TEXTILE, CLOTHING EXPORTS RISE 6% YOY TO USD1.064BN (DAWN): Textile and clothing exports rose 6.2% YoY to USD1.064bn in March, mainly driven by value-added products.
PPL DISCOVERS GAS RESERVES IN SINDH (THE NEWS): Pakistan Petroleum Limited (PPL) has announced discovery of hydrocarbon reserves for its exploratory well, Zafir X-1 in GambatSouth Block in Sindh with a gas flow of 29.2mmscfd.
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STOCK MARKET SYNOPSIS
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LAST WEEK
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THIS WEEK
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% CHANGE
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Mkt. Cap (US$bn)
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93.2
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93.8
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0.7%
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Avg. Dly T/O (mn. shares)
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277.7
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358.5
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29.1%
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Avg. Dly T/O (US$ mn.)
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157.9
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169.5
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7.4%
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No. of Trading Sessions
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5.0
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5.0
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–
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KSE 100 Index
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49,708.7
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49,300.9
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-0.8%
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KSE ALL Share Index
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33,783.7
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34,010.8
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0.7%
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