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NBP issues Foreign Exchange Rates
December 04, 2020: Treasury Management Division of National Bank of Pakistan (NBP) on Friday issued...
Wall Street lifted as Boeing shares take flight
December 03, 2020: Wall Street's main stock indices pushed higher on Thursday after Ryanair confirmed a major order of Boeing 737 MAX jets.
The deal for 75 of the planes by the Irish low-cost carrier was the first major order for the 737 MAX since the aircraft was grounded for 20 months following two fatal crashes.
The news, along with a successful test flight by American Airlines, help send shares in Boeing higher as the aircraft moves closer to returning to the skies after winning approval by US regulators last month.
Shares in Boeing surged 7.4 percent higher.
In late morning trading, the Dow was 0.6 percent higher, with the S&P 500 pushing further into record territory.
- Stimulating development -
Sentiment was also helped by movement towards a new stimulus package.
Speaker Nancy Pelosi threw her support behind a $908-billion compromise virus relief package proposed by a bipartisan group of lawmakers on Tuesday. The proposal is however half what Democrats had previously been pushing for.
"The narrative about how the market is feeling optimistic about 2021 recovery prospects because of the arrival of Covid vaccines is growing a bit tired, yet market participants have been given a stimulant with the increased buzz on Capitol Hill about the need to get another stimulus package done soon," said market analyst Patrick J. O'Hare at Briefing.com.
He added that the continued high number of new jobless claims along with more than 100,000 Covid-19 hospitalisations in the US were factors in the market viewing it as likely that a deal will be done relatively soon.
- Virus impact -
The eurozone's equity markets slipped on survey data indicating the region's economy continued to be battered by coronavirus fallout.
In eurozone trades Thursday, Frankfurt's DAX 30 index shed 0.5 percent and the Paris CAC 40 dropped 0.2 percent.
Data provider IHS Markit said its closely-watched composite eurozone purchasing managers' index (PMI) fell to 45.3 points in November from 50 in October, according to final estimates.
Britain's services PMI dropped to 47.6 from 51.4. A level below 50 points indicates contraction.
Nevertheless, London's FTSE 100 managed a 0.4 percent gain thanks to a good performance by international mining stocks.
Meanwhile the pound surged to its highest level in a year, briefly rising above $1.35, after a government official expressed confidence on reaching a post-Brexit trade deal with the EU.
"It's the kind of comment that has been heard before in the last couple of weeks, without anything materialising," said market analyst Connor Campbell at Spreadex. "Nevertheless, with the deadline looming, sterling will take what it can get."
Oil prices drifted higher as a crucial OPEC gathering debated whether to extend the current level of output cuts.
- Key figures around 1630 GMT -
- New York - Dow: UP 0.6 percent at 30,057.37
- London - FTSE 100: UP 0.4 percent at 6,490.27 points (close)
- Frankfurt - DAX 30: DOWN 0.5 percent at 13,252.86 (close)
- Paris - CAC 40: DOWN 0.2 percent at 5,574.36 (close)
- EURO STOXX 50: DOWN less than 0.1 percent at 3,518.78
- Tokyo - Nikkei 225: FLAT at 26,809.37 (close)
- Hong Kong - Hang Seng: UP 0.7 percent at 26,728.50 (close)
- Shanghai - Composite: DOWN 0.2 percent at 3,442.14 (close)
- Euro/dollar: UP at $1.2149 from $1.2115 at 2200 GMT
- Pound/dollar: UP at $1.3493 from $1.3365
- Dollar/yen: DOWN at 103.82 yen from 104.42 yen
- Euro/pound: DOWN at 90.07 pence from 90.65 pence
- West Texas Intermediate: UP 0.2 percent at $45.38 per barrel
- Brent North Sea crude: UP 0.3 percent at $48.41
AFP/APP
OPEC and allies to meet to thrash out cuts deal
December 03, 2020: The members of the OPEC group of oil producers are meeting with their allies on Thursday to see if they can reach an accord on extending production cuts over the coming months.
The video-conference meeting of the OPEC+ grouping was pushed back from Tuesday and comes after three days of inconclusive discussions among the 13 members of OPEC proper.
Observers say the postponement points to an agreement being harder to reach than initially thought.
The meeting was originally scheduled for 1300 GMT but eventually started almost two hours later.
The first wave of the coronavirus pandemic sent oil demand -- and prices -- plummeting in the spring, with the benchmark American contract even going into negative territory for the first time in history.
After tough negotiations in April, OPEC+ -- which includes Russia -- agreed on drastic production cuts in order to try to put a floor under oil prices.
Despite hitting producers' revenues hard, those cuts did help drag prices back up again.
However, the second wave of the pandemic has dashed hopes of a rapid "V-shaped" recovery for the economy and for oil demand.
Most producers, including OPEC kingpin Saudi Arabia, therefore favour an extension of the current agreement, which entails a cut of 7.7 million barrels per day (bpd) and was scheduled to be eased to 5.8 million bpd on January 1.
"OPEC and allies are said to be leaning towards a rollover of current cuts with a gradual increase in output," according to analyst Neil Wilson from Markets.com.
"Whether the easing would begin in January or after the three-month delay discussed before the meeting is unclear," wrote Stephen Innes of Axi.
After falling slightly in early Thursday trading, prices for both the US crude oil benchmark West Texas Intermediate (WTI) and Europe's Brent North Sea were holding steady just after the start of the OPEC+ meeting, at $45.30 and $48.36 respectively.
- Thorny subjects -
Markets were expecting producers to be able to agree on an extension of three to six months, with many viewing Monday's meeting as a formality to sign it off.
But a recent surge in crude prices -- up by 25 percent over the course of November -- together with positive news from several companies on coronavirus vaccines means some countries may need more convincing of the need for further sacrifices.
Meanwhile, the perennially thorny subject of whether all members are respecting production quotas laid down in previous agreements seems to once again be on the table.
Some insist that those who are currently overproducing be made to comply before further restrictions are imposed.
"It is unlikely that the strict implementation of the agreed cuts... will be achieved, which will undermine their effectiveness and confidence in the group," according to Eugen Weinberg of Commerzbank.
The cartel will also have to pay attention to developments in the three members which have been granted exemptions from quotas -- Libya, Iran and Venezuela.
Libya's production had been almost wiped out by civil conflict but has spiked since October and now stands at over one million bpd, according to the country's National Oil Corporation (NOC).
In the longer term, Iran's offer on the oil market may also increase if the incoming US administration pursues a policy of detente with Tehran and relaxes sanctions.
That would lead hundreds of thousands of barrels coming on to the market, exerting a fresh downward pressure on prices.
AFP/APP
Mobile banking transaction soars by 211% by value in 1QFY21
December 3, 2020: Mobile banking transactions increased to 36.4 million amounting to Rs. 908.7 billion in Q1-FY21, marking an increase of 139% by volume and 211% by value when compared with the same period last year.
The State Bank of Pakistan released its Quarterly Payment System Review (QPSR) for the first quarter, July – September 2020, of the fiscal year 2020-21 today, which shows strong growth in the pace of digital financial transactions in the country.
Promoting digital financial services is a key goal of the SBP. According to the data reported in the review, digital payment transactions in Pakistan have increased significantly during Q1-FY21, largely due to the impact of measures taken by SBP creating incentives for customers. Growth in digital payment infrastructure, as well as the emergence of new payment aggregators, have also been a contributing factor in this growth. Moreover, it also reflects the changes in consumer’s preference for digital transactions amid the Covid19 situation.
According to the Q1-FY21 QPSR, 253.7 million e-Banking transactions were conducted by customers valuing Rs. 19 trillion. E-banking transactions comprise Real-Time Online Branches (RTOBs) Transactions, ATM Transactions, Internet Banking Transactions, Mobile Phone Banking Transactions, e-commerce, POS, and Call Center/ IVR Banking. Although, RTOB transactions have a major share of e-banking transactions in terms of value, about 80%, other types of transactions are more than 83% of the e-banking transactions in terms of volume. During Q1-FY21, the most promising uptake was seen in internet banking and mobile banking transactions as the number of registered mobile phone banking users reached 8.9 million showing an increase of 41% over Q1-FY20 and the number of internet users touched 4.3 million with a growth of 26% over the same period.
Accordingly, mobile banking transactions increased to 36.4 million amounting to Rs. 908.7 billion, marking an increase of 139% by volume and 211% by value when compared with the same period last year. Similarly, internet banking transactions increased to 18.9 million, valuing Rs. 1.1 trillion during Q1-FY21, registering a growth of 55% in volume and 89% in value, in comparison to the same period last year.
Another major avenue of e-banking transactions is through Point of Sale (POS), whereby people make transactions using credit or debit cards typically for shopping at markets. The number of transactions through POS machines that declined sharply during Q3 and Q4 of FY20, owing to the closure of markets amid Covid19, recovered significantly in Q1-FY21.
The number of transactions through POS were recorded at 16.8 million amounting to Rs. 92.3 billion, showing an increase of 47% in terms of volume and 49% in value during Q1-FY21 over Q4-FY20. In addition to POS-based transactions, card-based transactions on e-commerce portals also followed a similar trend – a fall during Q3 and Q4 of FY20 due to Covid19 related decline in economic activity, and a recovery in Q1-FY21. Such transactions were recorded at 3.9 million, amounting to Rs. 11.9 billion in Q1-FY21, exhibiting strong growth of 70% by volume and 27% by value when compared with the Q4-FY20. Nevertheless, strong growth in e-commerce transactions can also be witnessed as the number of transactions and their value grew by 77% and 47% when compared with Q1-FY20.
Press Release
Upbeat economic data offers upside potential at PSX this December
December 3, 2020 (MLN): Following the global markets, Pakistan Stock Market rallied in November on three effective COVID-19 vaccine announcements, setting the stage for a more rapid economic recovery next year.
With the ambition to make investors know its stance of the capital market for December, JS Global held a webinar today on ‘Market Monthly Outlook’ wherein its research analysts discussed the upside and downside risks to stocks.
Many of the sectors which have been hit hard due to lockdown amid pandemic- Auto, Cement, Steel - have shown much recovery or gains on the back of encouraging economic climate and lower international crude oil prices.
Over the past several months, the KSE-100 index has been trading in a range of 38k to 42k. It is expected that any sharp jump can break the established range.
As per JS Global research analyst, there are high- upside opportunities available for investors in Cement, Steel, Auto, Banks, and some selected refineries.
Talking about the outlook of refineries, JS Global believes that the exchange and inventory losses will be reduced going forward as the environment is helpful for the growth of refineries wherein National Refinery Limited (NRL) has been suggested a compelling growth stock on the board.
The other growth stocks to buy are Bank Al Habib and United Bank Limited (UBL), according to JS Global Capital while Cherat Cement was also the pick.
Moreover, it is expected that IMF conditionality will have a positive impact on the financial market.
While the capital market has maintained several positive elements, in view of JS Global, there is increased uncertainty regarding the resurgence of COVID-19 cases has raised risks as the reimposition of lockdown may reverse the long-term positives. In addition, the efficacy of the vaccine after the rollout is something where all eyes are on.
Further, the markets are expected to look for another risk regarding Pakistan Democratic Movement (PDM) rallies.
JS Global apprised that solution of the monster of Circular Debt will be the biggest positive trigger for the capital markets.
The global political risks due to Iran-Israel tension cannot be ignored, JS Global concluded.
Copyright Mettis Link News
Auction Result: SBP Raises Rs.68.86 billion through Sale of GOP Ijara Sukuk
December 3, 2020 (MLN): The State Bank of Pakistan (SBP) conducted an auction on Thursday in which it sold 5 year variable rental rate GOP Ijara Sukuk worth Rs.68.86 billion.
Bids for the Fixed Rental Rate Sukuk were rejected.
Combined auction target was Rs.50 billion.
The SBP Received bids worth Rs.84.67 billion for the Variable Rate Ijara Sukuk with a range of -50 to 20 bps over benchmark out of which it accepted Rs.68.86 billion at a cut off margin of -10 bps.
Bids worth Rs.5.80 billion were received for the fixed rental rate Ijara sukuk with a fixed rental range 8.65% to 9.15 % which the SBP rejected.
Settlement date for the successful bids is Dec 09, 2020.
Copyright Mettis Link News
PSX Closing Bell: Manic Depression
December 03, 2020 (MLN): The capital market opened on a positive note on improved trade data and concessionary tariffs. However, profit-taking kicked in which eroded early session gains.
The benchmark KSE-100 index ended the choppy session flat by gaining mere 20.34 points today and closed at 42,047- level. This was 0.05% higher compared to the previous closing.
According to the closing note by Next Capital, the E&P sector remained under pressure throughout the trading session as news came in that OPEC+ discussions are now focused on proposals for a gradual easing of output cuts over several months.
The Index traded in a range of 401.26 points or 0.95 percent of the previous close, showing an intraday high of 42,410.20 and a low of 42,008.94.
Of the 97 traded companies in the KSE100 Index 42 closed up 54 closed down, while 1 remained unchanged. The total volume traded for the index was 240.18 million shares.
Sectors propping up the index were Fertilizer with 17 points, Cement with 13 points, Technology & Communication with 12 points, Oil & Gas Exploration Companies with 9 points and Commercial Banks with 7 points.
The most points added to the index was by SYS which contributed 27 points followed by LUCK with 17 points, MCB with 15 points, FFC with 15 points and PSO with 12 points.
Sector wise, the index was let down by Pharmaceuticals with 12 points, Chemical with 8 points, Textile Composite with 7 points, Power Generation & Distribution with 6 points and Food & Personal Care Products with 6 points.
The most points taken off the index was by TRG which stripped the index of 12 points followed by MTL with 12 points, SEARL with 11 points, HBL with 8 points and COLG with 7 points.
All Share Volume decreased by 56.55 Million to 420.32 Million Shares. Market Cap decreased by Rs.2.79 Billion.
Total companies traded were 400 compared to 403 from the previous session. Of the scrips traded 171 closed up, 215 closed down while 14 remained unchanged.
Total trades decreased by 10,030 to 150,615.
Value Traded decreased by 2.37 Billion to Rs.18.03 Billion
| Company | Volume |
|---|---|
| TRG Pakistan | 35,238,000 |
| Maple Leaf Cement Factory | 30,968,367 |
| Aisha Steel Mills | 29,693,000 |
| Hascol Petroleum | 28,529,178 |
| Pakistan Refinery | 26,717,500 |
| Unity Foods | 23,743,000 |
| Pakistan International Bulk Terminal | 20,636,500 |
| Hum Network | 8,617,500 |
| Fauji Fert.Bin(R) | 7,452,000 |
| Pak Elektron | 7,057,000 |
| Sector | Volume |
|---|---|
| Technology & Communication | 62,662,700 |
| Cement | 51,405,679 |
| Engineering | 45,308,600 |
| Refinery | 39,957,100 |
| Oil & Gas Marketing Companies | 34,904,902 |
| Vanaspati & Allied Industries | 23,767,900 |
| Transport | 23,625,700 |
| Food & Personal Care Products | 18,586,480 |
| Commercial Banks | 16,953,628 |
| Fertilizer | 15,998,990 |
Copyright Mettis Link News
Gold pauses its two-day gaining streak
December 3, 2020 (MLN): Snapping two-session gaining streak, gold prices slipped on Thursday in domestic bullion market. The price of 24 karat gold dropped by Rs.300 to Rs 110,500 per tola. The precious yellow metal of 24-Karat had closed at Rs 110,800 per tola yesterday.
According to the data released by the All Sindh Saraf Jewellers Association, the price of 10-gram gold also dipped by Rs 257 to Rs 94,736 against the price of Rs 94,993 reported in the previous session.
On the other hand, the price of silver tola and 10-gram silver jumped by Rs 20 and Rs 17.15 to clock in at Rs 1,200 and Rs 1,028.80 respectively, the association reported.
In the international market, the price of gold witnessed increase of US$8 amid the weakness in US dollar and traded at US$ 1.839 per ounce, while silver was pegged at US$ 24.14 an ounce.
Copyright Mettis Link News
SECP approves framework for digital onboarding of investors
December 3, 2020: The Securities and Exchange Commission of Pakistan (SECP) has approved a ground-breaking initiative to enable all Pakistani resident and non-resident investors to open online accounts in the capital market.
The new regime, that is part of SECP’s digital transformation agenda, allows investors to seamlessly open his or her account with a broker from anywhere in the country without requiring to submit any documents physically or visit a broker. The new hassle-free process shall enable investors to commence trading swiftly.
However, to ensure maximum investor protection, an alternate online Customer Verification process has been introduced for the opening of online accounts. The online verification will be conducted independently by the Centralized KYC Organization. In addition, the account opening process has been made simpler by reducing the number of pages to be signed by the investors.
The new account opening system is a continuation of SECP’s reform agenda that aims at enhancing investor outreach, introducing digitization, and ensure robust growth of the capital markets. A sizeable investor base is a crucial stepping stone for the development of any capital market and is, therefore, part of the major objectives of the SECP. It is expected that the new regime would revolutionize Pakistan’s capital markets and contribute significantly towards economic growth in the country by channeling investments and savings through the market.
Press Release
Hafeez Shaikh chairs FBR Policy Board meeting, stresses for evaluating customs clearance time
Dec 03, 2020: Adviser to the Prime Minister on Finance and Revenue, Dr. Abdul Hafeez Shaikh Thursday stressed the need for evaluating the clearance time with reference to the regional trading partners in order to make the Federal Board of Revenue (FBR) more competitive.
The adviser was chairing the fourth meeting of the FBR Policy Board held at the FBR Headquarters here, according to press statement issued by the Finance Ministry.
Earlier, Member Customs Operations gave a detailed presentation on Customs Valuation (Under-invoicing) and highlighted measures to be taken to plug in gaps and enhance custom revenues in future.
The Board had issued Valuation Rulings and entered into Electronic Data Exchange (EDE) Agreements with China, Iran, Afghanistan etc to address the issue of under-invoicing of imports effectively.
These agreements have yielded positive results, the Member Customs Operations added.
APP
