Good Morning
With no signs of coronavirus pandemic going away anytime soon, Pakistan on Tuesday reported a record number of 3,938 new coronavirus cases with 79 deaths over the last 24 hours. The government on Tuesday trimmed profit rates on all savings schemes and accounts of the Central Directorate of National Savings (CDNS) for the fourth times since July after recent spate of policy rate cuts by the central bank. The net foreign direct investment (FDI) to Pakistan surged by 127 per cent to $2.281 billion during the first 10 months of 2019-20, up from $1.006bn in the same period last year. While the gross FDI displayed an impressive jump of 24.1pc to $2.871bn, the exceptional performance in net inflows came on the back of slowdown in total outflows, which fell to $590 million during 10MFY20, from $1,308m.
Market View: The KSE100 gained 386 points in the last trading session, to close at 34,408.05 points. We expect the market to remain range bound in the upcoming session however, rising oil prices and cut to NSS rates may cause positive momentum to continue.
Commodities:
Brent oil (USD/bbl): 40.13 (+1.36% D/D)
WTI Crude oil (USD/bbl): 37.55 (+2.01% D/D)
Gold (USD/oz): 1,730.8 (-0.18% D/D)
National News
4000 test positive: Record jump in corona cases
ISLAMABAD: With no signs of coronavirus pandemic going away anytime soon, Pakistan on Tuesday reported a record number of 3,938 new coronavirus cases with 79 deaths over the last 24 hours.
ITeS export remittances surge to $1.003bn during July-April
ISLAMABAD: The IT and IT-enabled Services (ITeS) export remittances comprising computer services and call center services have surged to $1.003 billion at a growth rate of 23.42 percent in the first 10 months of fiscal year 2019-2020 (July-April), compared to $812.648 million during the same period of 2018-2019, according to performance report of Pakistan Software Export Board (PSEB), an organization under the Ministry of IT and Telecommunication.
Export of PPEs allowed by Cabinet
ISLAMABAD: A Federal Cabinet meeting held here on Tuesday gave its approval to export of locally-manufactured personal protective equipments (PPEs), sanitizers and other things. The meeting, which was chaired by prime minister Imran Khan, also decided that a committee comprising members from ministries of commerce, health, industrial production and science and technologies will be authorized to ban the export of any particular item keeping in view the domestic needs of the country.
Profit rates on saving schemes slashed fourth time since July
KARACHI: The government on Tuesday trimmed profit rates on all savings schemes and accounts of the Central Directorate of National Savings (CDNS) for the fourth times since July after recent spate of policy rate cuts by the central bank.
ECC likely to hedge prices of 15pc imported POL products
ISLAMABAD: The Economic Coordination Committee (ECC) that meets today (Wednesday) is likely to approve a summary of Petroleum Division seeking the permission of initiating process about hedging the prices of 15 percent of country’s POL products imports under the financial instrument of call option.
FDI surges 127pc in July-April
KARACHI: The net foreign direct investment (FDI) to Pakistan surged by 127 per cent to $2.281 billion during the first 10 months of 2019-20, up from $1.006bn in the same period last year.
While the gross FDI displayed an impressive jump of 24.1pc to $2.871bn, the exceptional performance in net inflows came on the back of slowdown in total outflows, which fell to $590 million during 10MFY20, from $1,308m.
Power entities to get Rs43.7bn to offset demand reduction
ISLAMABAD: The government has decided to release Rs 43.7 billion to the power sector entities to mitigate the impact of reduction in demand due to lockdown and economic slowdown as a result of Covid-19, official sources told Business Recorder.
Imported gas diversion to consumers by SNGPL: RLNG consumers to pay Rs73.848 billion
ISLAMABAD: The government is making up its mind to allow the Sui Northern Gas Pipelines Limited (SNGPL) to recover Rs73.848 billion from the RLNG consumers against the injecting of costly products to domestic and commercial consumers in last two winters for 2018-19 and 2019-20 respectively.
Consumer cos’ Q1 profitability dips 7pc YoY
KARACHI: Pakistan consumer companies (Staples, Pharmaceuticals and Discretionary) profitability has declined by 7 percent on year-on-year basis in the first quarter of 2020.
Fertilizer No mechanism yet to disburse Rs37bn subsidy
ISLAMABAD: The government is said to have failed to finalize a mechanism to disburse subsidy of Rs 37 billion announced on fertilizer which is seen as another instance of good intention with poor planning.
Oil sales estimated to rebound 41pc in May
KARACHI: Oil sales are estimated to rebound 41 percent month-on-month to 1.5 million tons as transportation has resumed after ease in lockdown, a brokerage reported on Tuesday.
NAB, FIA to power into action: Audit of all sugar mills from 1985
ISLAMABAD: The federal cabinet Tuesday tasked the Federal Investigation Agency (FIA) and National Accountability Bureau (NAB) with conducting the audit of all sugar mills since 1985.
International News
Oil hits three-month high over hopes for output cuts
Oil rose on Wednesday to a near three-month high amid optimism that major producers will extend production cuts as the world recovers from the coronavirus pandemic.
Gold eases as equity rally boosts risk appetite
Gold prices dipped on Wednesday as equity markets rallied on economic optimism and hopes for further stimulus measures boosted risk-on sentiment.Spot gold was down 0.2% at $1,722.93 per ounce, as of 1252 GMT. U.S. gold futures fell 0.3% to $1,729.70.
South Korea jumps more than 2% as optimism over reopening economies buoys investor sentiment in Asia
Stocks in Asia jumped in Wednesday morning trade, with optimism over the reopening of economies as authorities ease coronavirus-induced lockdown measures continuing to keep investor sentiment afloat.
