【Daily】28 July Brief of Pak BizNews
KSE 100 39,972.64 ▲0.20%
KMI 30 65,616.65 ▲0.05%
KASB Tech Index 381.93 ▲1.12%
KASB Market View
· Appointment of CM Punjab has brought some clarity on political front. We expect this to provide some breather to the market today. The country waits IMF's tranche to counter external account woes.
· Result season has begun where corporate earnings is seeing a decline on account of one time super tax.
· We recommend defensive sectors including Fertilizer and Pharma.
THE RUPEE: PKR: yet another low
Persistent political and economic uncertainty continued to add pressure on Pakistan's rupee, as the local currency closed at yet another record low against the US dollar in the inter-bank market on Wednesday. As per the State Bank of Pakistan (SBP), the rupee closed at 236.02, a day-on-day fall of Rs3.09 or 1.31%, against the greenback.
C/A posts over $17bn deficit in FY22
he country’s current account posted over $17 billion deficit during the last fiscal year (FY22) due to massive increase in goods import bills. The State Bank of Pakistan (SBP) on Wednesday reported that the current account deficit rose by 531 percent during FY22.
PKR slide: govt feels so helpless because there’s IMF condition
Finance Minister Dr Miftah Ismail Wednesday said that the government interventions in forex market cannot be made to control the rate of dollar in light of commitment with International Monetary Fund (IMF)
Suzuki shutting down its plant by August
Pak Suzuki Motor Company Limited (PSMCL) is shutting down its production plant from August 2022, due to the unavailability of CKDs and related raw material.
NPL serves payment notice on govt
Nishat Power Limited (NPL) has served notice of payment of overdue amount of Rs 4.4 billion to Government of Pakistan (GoP) along with interest at delayed payment rates as provided under the applicable provision of Power Purchase Agreement (PPA)
T-bill yields remain unchanged
The government raised Rs1.0 trillion through an auction of the Market Treasury Bill, while the yields on all papers stayed flat. The raised amount was higher than the pre-auction target of Rs650 billion. The cut-off yield on the three-year T-bill stood at 15.75 percent, unchanged from the previous auction held on July 13. The yield on the six-month paper also ended flat at 15.80 percent. Yields on 12-month paper clocked in at 15.94 percent, unchanged from the previous auction.
Gold above Rs150,000/tola mark
Gold prices in the local market increased by Rs2,500 per tola on Wednesday to a new time high rate in the country as the rupee continues to fall against the dollar.
Fitch, Moody’s expect Pakistan to get $1.2bn from IMF
Pakistan is expected to secure $1.2 billion from the International Monetary Fund, which may help ease pressure on the nation’s currency and bonds, according to Fitch Ratings and Moody’s Investor Service.
Russia cuts gas flows further as Europe urges energy saving
Russia delivered less gas to Europe on Wednesday in a further escalation of an energy stand-off between Moscow and the European Union that will make it harder, and costlier, for the bloc to fill up storage ahead of the winter heating season.
Fed unveils 75-basis-point rate hike
The Federal Reserve raised its benchmark overnight interest rate by three-quarters of a percentage point on Wednesday in an effort to cool the most intense breakout of inflation since the 1980s, with “ongoing increases” in borrowing costs still ahead despite evidence of a slowing economy.
Commodities and Currency: 1-Day Change