【Daily】3 Aug Brief of Pakistan BizNews
KSE 100 47,453.25 ▲ 0.85%
KASB Tech Index 474.91 ▲ 2.91%
· The stock market on Monday snapped a three-session bearish spell and rose nearly 400 points on the back of positive indicators.
· During the session, Pakistani rupee lost ground and touched almost a 10-month low of Rs163.67, which provided support to technology and textile sectors.
· According to data released by the Pakistan Bureau of Statistics, the inflation measured by the Consumer Price Index (CPI) spiraled down to 8.4% in July, which strengthened investor confidence.
KASB Market View
· We think COVID-19 infection rates and the economic concerns will overshadow the result season.
· Defensive and high-yielding stocks are likely to garner investors’ attention during uncertain times. Stocks within IPPs and Fertilizers may gather momentum.
· The weakening of the Pak Rupee is likely to improve the outlook for Textiles.
July CPI inflation jumps 8.4pc YoY
The Consumer Price Index (CPI)-based inflation increased by 8.4 percent on year-on-year basis in July 2021 as compared to an increase of 9.7 percent in the previous month and 9.3 percent in July 2020, says the Pakistan Bureau of Statistics (PBS).
Trade deficit swells by 81.4pc
ISLAMABAD: Pakistan’s trade deficit has ballooned by 81.4 per cent to $ 3.058 billion in July 2021 as compared to $ 1.686 in the corresponding month of 2020. According to provisional foreign trade figures during the first month of current fiscal year (2021-22), imports stood at $ 5.405 billion as compared to $ 3.687 billion in July 2020, showing a massive growth of 46.6 per cent or $ 1.718 billion. However, exports have posted a growth of 17.3 per cent to $ 2.347 billion in July 2021 as compared to $ 2.001 billion in July 2020.
Export of goods, services: PM approves target of up to $40bn
Prime Minister Imran Khan has approved $ 38.7 to $ 40 billion export target of goods and services for financial year 2021-22.
‘Export Facilitation Scheme 2021’ notified
The Federal Board of Revenue (FBR) has allowed exporters to make domestic sales up to 20 percent of the goods manufactured from duties and taxes free input/raw materials imported under Export Facilitation Scheme 2021.
Govt decides to import more sugar
The Government has decided to import 0.6 Million Metric Tons (MMT) of sugar instead of previous target of 0.5 million tons through Trading Corporation of Pakistan (TCP) as strategic reserves.
July exports jump 17.3pc to record $2.35 billion
Exports jumped to a record high in July as overseas demand for textile products extended export growth, supporting an economic recovery facing headwind from the Covid outbreak.
FDI plunges by 28.9pc in FY21
The net Foreign Direct Investment (FDI) has been decreased by 28.9 percent in financial year 2021 in Pakistan due to outbreak of Covid-19 pandemic. In written replies to the questions of the members, Minister In-charge of the Prime Minister’s Office told the National Assembly during question hour session, on Monday.
Order to fix price of sugar rattles the industry
The federal government has issued a new notification on July 30, 2021 through the Ministry of Industries and Production (MOI&P), which according to the industry sources is a bid to bash the sugar industry yet again by fixing the price of sugar in a complete defiance to the restraining orders of the Peshawar High Court (PHC), and violating the criteria delineated by the Lahore High Court (LHC).
Rupee weakens by Rs1.2 to hit nine-month low against dollar
The rupee continued to lose its ground against the US dollar during the second consecutive session in the interbank market on Monday, depreciating by Rs1.2 to close the day's trade at Rs163.67 per USD.
RLNG price increased
ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra), on Monday, has increased the price of Re-liquefied Natural Gas (RLNG) for the consumers of the Sui Northern Gas Pipeline Company Limited (SNGPL) and the Sui Southern Gas Company Limited (SSGC) for the month of August, in a monthly review.
Pak Suzuki Breaks Record for Highest Ever Sales in Pakistan
Pak Suzuki Motor Company (PSMC) has recorded the highest ever sales in the history of Pakistan’s Auto industry in a month. The company has closed July 2021 with over 15,200 vehicle sales.
1pc advance tax pushes up drug prices significantly
ISLAMABAD: Prices of various medicines have witnessed a significant increase as a result of imposition of one percent advance tax on drugs besides creating a shortage in the medicine market. Chemists and druggists talking to Business Recorder Monday said that their associations throughout the country have denounced the decision.
Commodities and Currency: 1-Day Change