Panama Leaks decision dictated the market sentiment during the week. The index started off on a weaker note but gained momentum during the latter half of the week, posting the highest ever intra-day level of 49,505pts following the Panama verdict which was taken positively by the investors. The index closed the week at 49,709pts, up 4.5%WoW. FIPI registered net outflow of USD32mn. Average volume traded increased by 62.5%WoW while average value traded increased by 81.3%WoW.
During the week, Amreli Steel Ltd. announced expansion in its Billets and Rebar capacity while Punjab Govt. unveiled its plan to launch the Orange cap scheme as a youth employment initiative. This initiative is expected to benefit PSMC and the stock was seen closing at its upper limit during the day.
On the macro front, FDI increased by 12.4%YoY in 9MFY17. Country’s total FX reserves dipped by USD176mn on WoW basis. Additionally, IMF projected a stable outlook for Pakistan’s economy with growth forecasts of 5% in 2017 and 5.2%in 2018.
Going forward, market fundamentals would take prominence with pre-budget proposals and upcoming result announcement determining the direction of the market.
NEWS THIS WEEK
ECONOMIC INDICATORS & DATA POINTS
PRIME MINISTER SURVIVES (THE NEWS): The Supreme Court in its verdict in the PanamaLeaks case raised 13 questions regarding the money trail and ordered to constitute a JIT that would probe the allegations of financial irregularities and money laundering allegedly involving PM and his family.
RESERVES DIP USD176MN (DAWN): Pakistan’s total liquid foreign exchange reserves amounted to USD21.5bn on April 14, down USD176mn or 0.8% from a week ago.
CURRENT ACCOUNT DEFICIT WIDENS TO USD6.13BN IN NINE MONTHS (THE NEWS):Country’s current account deficit widened 161% to USD6.13bn during the July-March period of 2016/17.
IMF PROJECTS STABLE GROWTH IN PAKISTAN (DAWN): Pakistan, a broad-based recovery is expected to continue at a healthy pace, with growth forecast at 5% in 2017 and 5.2% in 2018.
SBP INKS ACCORD WITH IRANIAN COUNTERPART (DAWN): State Bank of Pakistan has signed an agreement with Bank MarkaziJomhouriIslami Iran to facilitate bilateral trade.
FDI INCREASED 12.4% YOY IN THE 9MFY17 (DAWN): SBP has reported that the country received USD1.6bn in 9MFY17 against USD1.42bn in the same period last year.
SECTOR AND CORPORATE HIGHLIGHTS
AMRELI STEELS EYES MAJOR BOOST IN PRODUCTION CAPACITY (THE NEWS): Amreli Steels Limited has unveiled its plan to increase its annual production capacity of reinforcement bars to 750,000 tonnes within the next two years.
SUPER TAX SET TO BE EXTENDED FOR A YEAR (TRIBUNE): Government is planning to extend Super Tax for yet another year, generating Rs30 billion for partially meeting security establishment’s expenditures.
PUNJAB GOVT’S ‘ORANGE CAB’ SCHEME TO PROVIDE 100,000 CARS TO UNEMPLOYED YOUTH (DAWN): The Government of Punjab is set to launch an “Orange Cab” scheme seeking to provide 100,000 cars to unemployed youth in the province.
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