Stock market at a glance

MARKET REVIEW

The week started off on a bullish note with the index gaining 1.2% on the first trading session of the week on the back of MSCI euphoria. However, confusion regarding pro forma weight in the MSCI Emerging market index resulted in bearish sentiments for the remaining part of the week where the index closed at 50,742 points, down 1.9%WoW. Foreigners remained net sellers during the week with a net FIPI outflow of USD16.4mn. Furthermore, trading activity remained muted during the week with ADT and ADTV witnessing a decrease of 1.5%WoW and 5.5%WoW, respectively.

During the week, National Accounts Committee (NAC) released provisional GDP growth data for FY17 wherein country’s economy grew by 5.28%. Furthermore, Annual Plan Coordination Committee approved PKR2.113trn for next year’s PSDP. Also, SBP issued a banking license to Bank of China.

OUTLOOK

Going forward, pre-budget expectations can be expected to determine the direction of the market. SBP is likely to keep it policy rate unchanged thereby being a non-event for the market.

NEWS THIS WEEK

ECONOMIC INDICATORS & DATA POINTS

10MFY17 FDI UP 13% YOY (RECORDER): FDI posted an increase of 13% YoY in 10MFY17 supported by Chinese investment under CPEC.

GDP GROWTH RATE HITS 10-YEAR HIGH OF 5.28% (DAWN): Economy grew at the rate of 5.28% against the projected rate of 5.7% in 2016-17. It is the fastest pace of growth since 2006-07 when GDP expanded by 6.8%.

LARGE-SCALE INDUSTRY CLIMBS BY 10.46% YOY IN MAR (DAWN): LSM grew 10.46% YoY in March, the highest growth recorded in the last few years.

TELECOM SPECTRUM SALE YIELDS USD324.5M (DAWN): Government has earned an additional USD324.5mn (Rs34 billion) from the sale of another spectrum to a cellular company.

APCC APPROVES PKR2.113TR FOR PSDP (RECORDER): Annual Plan Coordination Committee has approved PKR2.113tr for the next year Public Sector Development Program.

MONETARY POLICY ON 20TH (DAWN): State Bank of Pakistan will announce its monetary policy on Saturday, 20th Mar 2017.

SECTOR AND CORPORATE HIGHLIGHTS

GOVT TO LIFT BAN ON IMPORTED FUEL-BASED POWER PLANTS (TRIBUNE): Government has decided to lift the ban on setting up new power plants based on imported fuel in an attempt to resume and step up work on an abandoned imported coal-fired project.

SBP GRANTS BANKING LICENSE TO BANK OF CHINA (TRIBUNE): SBP has issued a banking license to Bank of China, which will commence its business in branch mode after meeting other regulatory requirements.

PSO SET TO OFFER BRANCHLESS BANKING SERVICES (TRIBUNE): PSO’s fuel stations are expected to start offering branchless banking services in the next two months and all outlets on the network would be doing so in the next eight months.

HYUNDAI PARTNERS WITH LOCAL PLAYER TO SET UP ASSEMBLY PLANT (TRIBUNE): Al-Haj Group in partnership with Hyundai Motor Company (HMC) has decided to assemble different truck variants and luxury buses in Pakistan at an expected investments of PKR4bn.

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