MARKET REVIEW
The week started off on a bullish note with the index gaining 2.2% on the first trading session of the week as MSCI euphoria started building up. However, the excitement subsided a little and the index closed the week at 51,751 points level, returning 3.6%WoW on closing basis. Foreigners remained net sellers during the week with a net FIPI outflow of USD2.6mn. However, trading activity picked up in the week with ADT and ADTV witnessing an increase of 32.7%WoW and 34.6%WoW, respectively.
During the week, Pakistan Bureau of Statistics (PBS) released trade deficit data for the month of Apr’17 wherein country’s total trade deficit posted an increase of 51.7%YoY to clock in at USD3.2bn. Also, Pakistan Automotive Manufacturers Association (PAMA) released auto numbers for the month of Apr’17 wherein overall car sales exhibited an increase of 2.5%YoY.
OUTLOOK
Going forward, with Pakistan’s classification into MSCI-EM in the current month (May’17), foreign activity may pick up with particular interest in the EM constituents.
NEWS THIS WEEK
ECONOMIC INDICATORS & DATA POINTS
MOODY’S SAYS PAKISTAN’S EXTERNAL DEBT WILL INCREASE TO $79 BILLION BY JUNE (TRIBUNE): Moody’s Investors Service has predicted that Pakistan’s external debt will grow to USD79bn by June this year, and the country’s weak fiscal strength will weigh in on its ability to afford the ever growing debt burden.
REMITTANCES DROPPED 2.8% IN 10 MONTHS (DAWN): Remittances fell 2.79% to USD15.59bn in the 10MFY17 against USD16.04bn in the same period last year.
PAKISTAN IS LIKELY TO FLOAT USD500M BONDS TO FUND DASU PROJECT (TRIBUNE): Wapda is expected to raise USD500mn by floating bonds in the international capital market backed by partial credit guarantees of the World Bank in a bid to finance the construction of 4,320MW Dasu hydroelectric power project.
PM RELAXES FISCAL DEFICIT LIMIT FOR NEXT THREE YEARS (DAWN): Government has decided to maximize spending in FY18 with a 6% growth target for the national economy. PM’s office said the government will aim to bring down the fiscal deficit to 4% of GDP in 2020.
SECTOR AND CORPORATE HIGHLIGHTS
CAR SALES INCH UP IN THE COUNTRY (DAWN): Overall car sales inched up 2.45% to 155,960 units during 10MFY17 as compared to 152,229 in same period last year.
SAZGAR TO VENTURE INTO LCV & PASSENGER CAR MANUFACTURING (TRIBUNE): Sazgar Engineering has decided to explore new opportunities for manufacturing of passenger cars and LCVs in Pakistan.
PSO CANCELS JET FUEL TENDER AMID AFGHAN BORDER DISPUTE (DAWN): Pakistan State Oil has cancelled a tender to buy jet fuel for delivery in June amid a border dispute between Pakistan and Afghanistan.
PUNJAB PROPOSES ABOLISHING SALES TAX ON ALL TYPES OF FERTILIZER (TRIBUNE): In a bid to provide meaningful relief to the farming community in the upcoming budget, Punjab government has proposed to abolish sales tax on all kinds of fertilizer.
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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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94.0
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97.1
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3.4%
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Avg. Dly T/O (mn. shares)
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263.8
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355.1
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34.6%
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Avg. Dly T/O (US$ mn.)
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135.8
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180.2
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32.7%
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No. of Trading Sessions
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4.0
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5.0
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0.0
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KSE 100 Index
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49,851.1
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51,750.9
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3.8%
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KSE ALL Share Index
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34,144.3
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35,355.6
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3.5%
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