Despite the vote of confidence, KSE-100 expressed disappointment. The Index closed 786 points down to 45,051 with Rs~ 25bn traded. One can only imagine how the index could have (god forbid) reacted had PM lost vote of confidence. Many reasons were cited to justify the movement today; leverage, inflation fears, rumored redemptions and possible change of guards in Punjab assembly. Nothing concrete can be said so far. Redness was enough to jitter small investors – specially the ones investing on leverage.
KASB Market View
We feel that the market would recover by the end of this week if government and allied win Senate election that may reassure investors for necessary legislature business & just may be enough to bring the bulls back. InshaAllah
Meanwhile. Prime Minister has approved reversal of income tax exemptions which would disappoint the market as many credits would be reversed. Similarly, IMF & Pakistan are agreeing to an Rs 6trn tax target for next fiscal year – that require massive tax hikes and could be inflationary. The circular debt too has been agreed to be frozen at current levels. These are painful but necessary for sustainable development as honeymoon period under Covid ends & structural reforms begin.
National News
Cabinet likely to approve SBP bill today
ISLAMABAD: The Federal Cabinet, which is scheduled to meet on Tuesday (today), is likely to approve the State Bank of Pakistan (SBP) amendments Bill, 2021, a prior action under the second to fifth staff review of IMF’s Extended Fund Facility Programme, sans nod of Cabinet Committee for Disposal of Legislative Cases (CCLC) as Finance Ministry wants the Bill to be introduced in Parliament urgently.
https://epaper.brecorder.com/2021/03/09/1-page/872748-news.html
PTI MNAs move ECP again against Gilani
ISLAMABAD: The central ruling party Pakistan Tehreek-e-Insaf (PTI) on Monday moved another application in Election Commission of Pakistan (ECP), seeking urgent hearing of the case against former prime minister Yousuf Raza Gilani in connection with leaked video controversy involving his son.
https://epaper.brecorder.com/2021/03/09/1-page/872743-news.html
Value-added garments, home textiles. Exports likely to decline due to yarn shortages, weak PKR
KARACHI: The successful efforts of the value added garment and home textile industries facing jeopardy in the wake of unavailability of cotton yarn and abrupt decrease of value of rupee against dollar.
https://epaper.brecorder.com/2021/03/09/14-page/872839-news.html
Govt proposed legal amendments to boost farm credit
ISLAMABAD: Minister for Finance and Revenue Hafeez Shaikh on Monday called for action plan to boost farm credit after recommendations of legal amendments related to foreclosures and approval procedures.
https://www.thenews.com.pk/print/801191-govt-proposed-legal-amendments-to-boost-farm-credit
HUBCO’s subsidiary to acquire upstream operations, renewable energy assets of ENI Pakistan
(MLN): Hub Power Holdings Limited, a wholly owned subsidiary of The Hub Power Company Limited together with ENI’s local employees (in a 50:50 joint venture) has executed definitive agreements to acquire all the upstream operations in Pakistan of Eni and renewable energy assets owned by Eni in Pakistan.
Kia Motors and Changan Delay Vehicle Deliveries in Pakistan
Delivery delays seem to be a common issue in the automotive industry these days, and several automakers have informed their customers about it recently.
https://propakistani.pk/2021/03/08/kia-motors-and-changan-delay-vehicle-deliveries-in-pakistan/
Monster of Covid-19 becoming a challenge: Fawad
ISLAMABAD: Minister for Science and Technology Chaudhry Fawad Hussain Monday said that opposition’s politics had doomed after 178 members of the National Assembly voted for Prime Minister Imran Khan.
https://www.thenews.com.pk/print/801342-monster-of-covid-19-becoming-a-challenge-fawad
Construction Work on Lahore’s Five Mega Projects to Start in April
The construction work on five mega projects worth Rs. 20.5 billion is expected to begin by the end of April. Currently, the process of qualification of contractors, bidding process, the award of contracts, and transfers of funds is underway.
TCP issues tender to buy 50,000 tonnes of sugar
HAMBURG: The Trading Corporation of Pakistan (TCP) has issued a new international tender to purchase 50,000 tonnes of white sugar, European traders said on Monday. The deadline for submission of price offers is March 16.
https://epaper.brecorder.com/2021/03/09/1-page/872754-news.html
Oil slips after hitting above $70/bbl
NEW YORK: Oil prices slid on Monday after earlier climbing above $70 a barrel for the first time since the COVID-19 pandemic began after attacks on Saudi Arabian oil facilities.
https://epaper.brecorder.com/2021/03/09/11-page/872822-news.html
Penny Stock
-Word of the Day-
A penny stock typically refers to the stock of a small company that trades for less than $5 per share. Though some penny stocks trade on large exchanges, most trade via over-the-counter (OTC) transactions through the electronic OTC Bulletin Board (OTCBB) or through the privately-owned OTC Markets Group.
