Pakistan’s market continues to recover lost grounds, gaining nearly 600pts in the last trading session. The recent recovery is largely because of dimming political noise amidst a discord within the opposition over potential resignation from the assemblies, even delaying the planned ‘Long March’.
KASB Market View
The Pak Rupee has depicted a sharp recovery, hovering near its 1yr high mark. This appreciation of the currency is largely expected to benefit cyclical industries, particularly the automobile industry and the steel industry. As political noise continues to dim further, we believe investors will revert their focus back on improving macros and build fresh positions.
National News
ECC approves changes to Naya Pakistan housing scheme
Caught between the public criticism of repeated tariff increases and IMF compulsions, the Economic Coordination Committee (ECC) of the cabinet on Wednesday formed a two-member committee to suggest a revised plan for charging about Rs17 billion additional fuel cost from electricity consumers.
https://www.dawn.com/news/1613117/ecc-approves-changes-to-naya-pakistan-housing-scheme
Foreign investment plunges by 30pc in eight months
Foreign direct investment (FDI) fell by 30 per cent in the first eight months of FY21, reflecting poor confidence in the country’s investment environment.
https://www.dawn.com/news/1613164/foreign-investment-plunges-by-30pc-in-eight-months
Dollar loses another 98 paisa against rupee
The US dollar on Wednesday lost almost Re1 against the rupee as exporters fearing further weakening started selling their greenback holdings in the interbank market.
https://www.dawn.com/news/1613162/dollar-loses-another-98-paisa-against-rupee
Quarterly tariff adjustment: Power consumers to face another brunt of Rs91bn
The consumers of power Distribution Companies (Discos) are to face another brunt of Rs 91 billion (Paisa 91 per unit) as Quarterly Tariff Adjustment (QTA) for two quarters, i.e. from July to September and October to December 2000.
Pakistan hires banks for international bond sale
The government has taken foreign banks on board to raise funds from a possible foreign-currency bond offering, people familiar with the matter told Bloomberg on Wednesday.
https://www.thenews.com.pk/print/805756-pakistan-hires-banks-for-international-bond-sale
Minister vows cotton-specific subsidies for growers
National Food Security and Research Minister Syed Fakhar Imam said on Wednesday that cotton growers would soon be given special incentives by the federal and provincial governments in the form of cotton-specific subsidies.
https://profit.pakistantoday.com.pk/2021/03/17/minister-vows-cotton-specific-subsidies-for-growers/
China gifts another 500,000 doses of Covid vaccine
As the vaccination process gains momentum, China on Wednesday gifted another 500,000 doses of Covid-19 vaccine to Pakistan while the first consignment of the privately-imported Russian vaccine reached Karachi.
https://www.dawn.com/news/1613116/china-gifts-another-500000-doses-of-covid-vaccine?preview
Retailers jack up flour prices after sharp increase in wheat rate
Sindh’s new wheat crop has landed in Karachi’s wholesale market with the highest-ever price tag of Rs5,000 per 100 kg bag, fuelling fears it may trigger price distortions in the country, it emerged on Wednesday.
https://www.dawn.com/news/1613160/retailers-jack-up-flour-prices-after-sharp-increase-in-wheat-rate
Govt urged to facilitate KE deal with Shanghai Electric
Saudi Arabia’s Al-Jomaiah Group on Wednesday sought early resolution of payables and receivables of K-Electric (KE) and urged the government and public sector entities to facilitate the power utility’s takeover by China’s Shanghai Electric Ltd.
https://www.dawn.com/news/1613163/govt-urged-to-facilitate-ke-deal-with-shanghai-electric
Price Discovery
-Word of the Day-
Price discovery is the process of setting the spot price, but most commonly the proper price, for a security, commodity, or currency.
