The Abacus Prompt - July 2017 Issue

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Stock Market

  • The KSE-100 index closed at 46,010 pts, decreasing 1.19% MoM Graph May 17
  • Average daily turnover decreased 27% MoM to ~175 mn shares
  • Foreigners reported a net sell of USD 37.9 mn in July (compared to a net buy of USD 7.9 mn in the previous month).
  • Insurance Companies were major buyers during July, reporting a net buy worth USD 39.2 mn, whereas Mutual Funds were major sellers of USD 30.5 mn during the month.
  • Banking, Cement, and Auto sector stocks were key negative contributors

Currency and Commodity MarketsCurrency May 2017

  • The PKR depreciated 0.51% MoM against the USD, 2.03% MoM against the GBP, and 4.04% MoM against the EUR
  • Domestic Gold prices increased by 1.80% MoM, while domestic Silver prices increased by 1.7% MoM
  • WTI Crude increased by nearly 9% MoM. Domestic HSD and Motor Spirit prices remained unchanged on a MoM basis
  • Cotton (KCA) prices decreased by around 3.8% MoM to PKR 6,350/maund
  • Urea prices decreased around 3.44% MoM at PKR 1,318/bag
  • Total cement dispatches during July 2017 were recorded at 3.38 mn tonnes, up 23.81% MoM and 45.06% YoY.. Prices increased nearly 3% MoM.

Macroeconomic Profile

  • The SBP remained unchanged at 5.75%
  • Forex Reserves decreased by USD 1.09 bn to USD 20.28 bn Currency May 2017
  • CPI Inflation was recorded at 2.90% YoY
  • Exports decreased by 14.7% MoM to USD 1.63 bn and imports increased by 6.64% MoM to USD 4.84 bn; resultantly, the trade deficit increased by 22.20% MoM to USD 3.20 bn
  • Foreign remittances decreased by 16.30% MoM to USD 1.54 bn
  • The FBR reported provisional revenue collection at around PKR 200 bn in July 2017
  • Net FDI was recorded at USD 222.6 mn in July 2017, higher 162.8% YoY.

News Highlights

  • A five-member bench of Supreme Court in a unanimous decision disquali­fied the Prime Minister and ordered the NAB to ­file criminal charges against Nawaz Sharif and family in six weeks and complete the proceeding in six months.
  • Tariq Bajwa was appointed as the new Governor of the SBP
  • Regulatory duty of up to 35% was imposed on various steel products under SRO 505(I)/ 2017
  • SECP chairman Zafar Hijazi was arrested by FIA on charges of tampering with the record of Sharif family’s companies
  • Qatar rejected a list of 13 demands put forward by Saudi Arabia and its allies to end the diplomatic stalemate in the Middle East