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London, July 17: Stocks and the dollar rose on Tuesday as the head of the Federal Reserve said the economic outlook remains strong despite uncertainty over trade policy.
Upbeat about the US economy, Federal Reserve chief Jerome Powell began two days of congressional testimony on Tuesday by indicating the central bank will continue to raise rates gradually.
US stocks reversed modest losses from the start of trading, while the dollar strengthened. The drop in the value of the euro and pound helped push European stocks into positive territory as well.
"European markets have moved higher in unison today, as the decline in European currencies help drive gains for stocks," said IG market analyst Joshua Mahony.
Stock markets mostly slid across Asia, led by share price falls for the energy sector one day after oil prices plunged on excess supply concerns.
Brent crude hit another three-month low Tuesday, at $71.35 per barrel, before recovering.
While painting a positive picture about the US economy, Powell acknowledged that it was "difficult to predict the ultimate outcome of current discussions over trade policy," a clear reference to the aggressive tariff policies adopted by President Donald Trump against China and many US trading partners.
The International Monetary Fund warned Monday escalating trade tensions and tariff threats, if carried out, could disrupt global growth and derail investments.
Fears about a China-US trade war continue to nag investors, with both sides filing counter-complaints at the World Trade Organisation after recently imposing and threatening further tariffs on billions of dollars worth of goods.
On Tuesday, the EU and Japan signed a sweeping free trade deal that officials called a "clear message" against protectionism, as Washington imposes controversial tariffs and threatens a trade war.
The huge deal was signed as US President Donald Trump unsettles allies and provokes rivals with his aggressive "America First" trade policy.
Both the EU and Japan have been hit with new US tariffs despite their long-standing alliances with Washington.
Markets' attention is also on the start of the corporate earnings season, with Netflix disappointing analysts on growth in the number of its subscribers in data released late Monday still affecting markets.
Its shares plunged nearly 13 percent in early trading on Tuesday before recovering some of the losses.
The streaming service said membership grew 5.2 million to 130 million, a million shy of what the company had forecast.
Shares in investment bank Goldman Sachs dropped 1.3 percent after reporting a 44 percent jump in second-quarter earnings to $2.3 billion and announcing that David Solomon would succeed Lloyd Blankfein as chief executive.
In Germany, shares in Thyssenkrupp jumped 9.1 percent as the departure of another key executive boosted chances that activist investors will succeed in their effort to split apart the industrial conglomorate.
- Key figures at 1530 GMT -
- New York - Dow: UP 0.04 percent at 25,075.62 points
- London - FTSE 100: UP 0.3 percent at 7,626.33 (close)
- Frankfurt - DAX 30: UP 0.8 percent at 12,661.54 (close)
- Paris - CAC 40: UP 0.2 percent at 5,422.54 (close)
- EURO STOXX 50: UP 0.3 percent at 3,459.36
- Tokyo - Nikkei 225: UP 0.4 percent at 22,697.36 (close)
- Hong Kong - Hang Seng: DOWN 1.3 percent at 28,181.68 (close)
- Shanghai - Composite: DOWN 0.6 percent at 2,798.31 (close)
- Euro/dollar: DOWN at $1.1692 from $1.1712 at 2100 GMT
- Pound/dollar: DOWN at $1.3179 from $1.3237
- Dollar/yen: UP at 112.79 yen from 112.27 yen at 2100 GMT
- Oil - Brent Crude: UP 28 cents at $72.12 per barrel
- Oil - West Texas Intermediate: DOWN 44 cents at $67.62 per
(AFP/APP)
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Hong Kong stocks open higher
Hong Kong, July 18: Hong Kong shares rose in early trade Wednesday, on the back of a Wall Street rally following the US Federal Reserve chief's positive economic outlook.
The Hang Seng Index climbed 0.68 percent, or 192.80 points, to 28,374.48.
The benchmark Shanghai Composite Index added 0.13 percent, or 3.65 points, to 2,801.78, and the Shenzhen Composite Index, which tracks stocks on China's second exchange, edged up 0.05 percent, or 0.86 points, to 1,600.94.
(AFP/APP)
Information provided under declaration to remain confidential: Finance Ministry
ISLAMABAD, Jul 17: The Ministry of Finance Tuesday assured all the applicants making declarations under the Tax Amnesty Scheme that the information provided by them would remain strictly confidential and the guarantees provided under the scheme would be abided in letter and spirit.
In a press statement issued here, the ministry reiterated that leakage of information by anyone about declarants/declarations under the scheme was punishable, on conviction, by a fine not less than five hundred thousand rupees but not exceeding one million rupees or imprisonment for a term not exceeding one year or with both.
(APP)
FBR rebuts news report regarding payment of tax under tax amnesty
ISLAMABAD, Jul 17: Federal Board of Revenue (FBR) Tuesday strongly rebutted a news report published in a section of the national press regarding payment of tax under foreign tax amnesty scheme by a Karachi-based taxpayer.
In a statement issued here, FBR rejected the contents of the report and strongly denied that the baseless information has been provided by FBR sources.
The board clarified that it was bound by strict confidentiality provisions contained in Foreign Assets (Declaration and Repatriation) Act, 2018 and Voluntary Declaration of Domestic Assets Act, 2018.
Under these provisions disclosure was punishable by fine from five hundred thousand to one million rupees or imprisonment for a term not exceeding one year or with both.
To ensure confidentiality of the declarants, FBR had developed an online system for filing amnesty declarations, which had proper safeguards in place and restricts access to information contained in the
declarations.
(APP)
Fed chief’s confidence bolsters stocks, dollar
London, July 17: Stocks and the dollar rose on Tuesday as the head of the Federal Reserve said the economic outlook remains strong despite uncertainty over trade policy.
Upbeat about the US economy, Federal Reserve chief Jerome Powell began two days of congressional testimony on Tuesday by indicating the central bank will continue to raise rates gradually.
US stocks reversed modest losses from the start of trading, while the dollar strengthened. The drop in the value of the euro and pound helped push European stocks into positive territory as well.
"European markets have moved higher in unison today, as the decline in European currencies help drive gains for stocks," said IG market analyst Joshua Mahony.
Stock markets mostly slid across Asia, led by share price falls for the energy sector one day after oil prices plunged on excess supply concerns.
Brent crude hit another three-month low Tuesday, at $71.35 per barrel, before recovering.
While painting a positive picture about the US economy, Powell acknowledged that it was "difficult to predict the ultimate outcome of current discussions over trade policy," a clear reference to the aggressive tariff policies adopted by President Donald Trump against China and many US trading partners.
The International Monetary Fund warned Monday escalating trade tensions and tariff threats, if carried out, could disrupt global growth and derail investments.
Fears about a China-US trade war continue to nag investors, with both sides filing counter-complaints at the World Trade Organisation after recently imposing and threatening further tariffs on billions of dollars worth of goods.
On Tuesday, the EU and Japan signed a sweeping free trade deal that officials called a "clear message" against protectionism, as Washington imposes controversial tariffs and threatens a trade war.
The huge deal was signed as US President Donald Trump unsettles allies and provokes rivals with his aggressive "America First" trade policy.
Both the EU and Japan have been hit with new US tariffs despite their long-standing alliances with Washington.
Markets' attention is also on the start of the corporate earnings season, with Netflix disappointing analysts on growth in the number of its subscribers in data released late Monday still affecting markets.
Its shares plunged nearly 13 percent in early trading on Tuesday before recovering some of the losses.
The streaming service said membership grew 5.2 million to 130 million, a million shy of what the company had forecast.
Shares in investment bank Goldman Sachs dropped 1.3 percent after reporting a 44 percent jump in second-quarter earnings to $2.3 billion and announcing that David Solomon would succeed Lloyd Blankfein as chief executive.
In Germany, shares in Thyssenkrupp jumped 9.1 percent as the departure of another key executive boosted chances that activist investors will succeed in their effort to split apart the industrial conglomorate.
- Key figures at 1530 GMT -
- New York - Dow: UP 0.04 percent at 25,075.62 points
- London - FTSE 100: UP 0.3 percent at 7,626.33 (close)
- Frankfurt - DAX 30: UP 0.8 percent at 12,661.54 (close)
- Paris - CAC 40: UP 0.2 percent at 5,422.54 (close)
- EURO STOXX 50: UP 0.3 percent at 3,459.36
- Tokyo - Nikkei 225: UP 0.4 percent at 22,697.36 (close)
- Hong Kong - Hang Seng: DOWN 1.3 percent at 28,181.68 (close)
- Shanghai - Composite: DOWN 0.6 percent at 2,798.31 (close)
- Euro/dollar: DOWN at $1.1692 from $1.1712 at 2100 GMT
- Pound/dollar: DOWN at $1.3179 from $1.3237
- Dollar/yen: UP at 112.79 yen from 112.27 yen at 2100 GMT
- Oil - Brent Crude: UP 28 cents at $72.12 per barrel
- Oil - West Texas Intermediate: DOWN 44 cents at $67.62 per
(AFP/APP)
European Union looks for Asian partners after US tariff assault: NYT
WASHINGTON, Jul 17: A tariff war launched by the United States has apparently encouraged its biggest trading partner, the European Union, to look elsewhere, a New York Times report said on Tuesday, citing a latest trade deal between the EU and Japan that will cover quarter of the global economy.
President Trump's move to impose tariff on steel and aluminum annoyed many of its old allies, including the EU, Canada and Mexico, which are now responding with their own duties on imports from the United States.
In addition, President Trump has also imposed, or plans to impose, duties on Chinese import worth more than $200 billion. China has responded with its own tariffs on American goods, raising prospects of a trade war that will undermine the global economy.
"President Trump is inciting a trade war, undermining NATO and painting Europe as a foe. It's no wonder, then, that the European Union is looking elsewhere for friends," the report said, referring to his recent tirade against the NATO members over defense spending.
While, the EU engages in a high-level trade diplomacy with the US, it is cementing its ties with Asian giants such as Japan, with whom it signed its largest trade deal on Tuesday.
The deal will cut duties on products like European wine and cheese, while gradually reducing tariffs on cars. In addition to signing deal with Japan, the report said that the EU has either concluded or in working with countries like Australia, Vietnam and even China to boost its trade.
The move by the EU will reduce its reliance on its trade with its biggest partner, the United States.
The NYT report said the deal with Japan and other countries showed a more assertive Europe, which is looking past the "frosty ties" with the United States over trade.
Several European leaders have in recent months spoke more of free trade in a rebuke the US tariffs which is seen by many as a semblance of protectionist policies.
But, while the European leaders are putting a brave face and trying to counter trade barriers by negotiating deals with other countries, the fact would remain that the United States is still its largest trading partner and it would be difficult to offset the impact of the US tariffs on imports like cars.
According to the report, Europe has also concluded a deal in principle with Mexico to update an existing free-trade agreement, expected to be finalized by the end of the year. Similarly, accords with Vietnam and Singapore were also in final stages of approval.
The EU is also negotiating with other countries including Australia, Chile, Indonesia, New Zealand, Tunisia and the so-called Mercosur countries Argentina, Brazil, Paraguay and Uruguay.
(APP)
Outflows from portfolio investors reduce by 53% in Fiscal Year 18
According to data released from the State Bank of Pakistan, foreign investment in Pakistan increased by 99% in the Fiscal year 2018, as it was reported at $4.97 billion compared to $2.49 billion in the previous fiscal.
This jump in foreign investment is a result of the issuance of 5 and 10 year Euro Bonds on December 5, 2018, worth $1 billion and $1.5 billion respectively, bringing in a total inflow of $2.5 billion through these sources. Consequently, total foreign public investments increased by over 800% from $262 million in the fiscal year 2017 to $2.45 billion in the fiscal year 2018.
Foreign private investments, on the other hand, witnessed an increase of about 13%, reaching $2.53 billion in the fiscal year 2018, compared to $2.23 billion during the previous fiscal.
The bulk of this increase was due to the fact that outflows from portfolio investors reduced significantly, whereas total direct investments showed only a nominal increase of 1%. Outflows from portfolio investors reduced from $513 million in the fiscal year 2017 to $240 million in the fiscal year 2018, a reduction of about 53%.
Total private direct investments flowing into the country were recorded at $3.44 billion, about the same level as the previous fiscal, while direct investments flowing out of the country recorded a 5% decrease after being reported at $671 million compared to $704 million in the previous fiscal year.
KSE 100 index rises over 250 points on the back of Cement, Fertilizers and Food Sector
KSE – 100 picked up pace in the concluding half of today’s session by gaining 267 points to close at 39,932 points, 0.67% up by previous session’s end. The highest index mark was 40,012 points while the least recorded was 39,330 points, leaving a bracket of 681 points to move.
The total shares traded today locked in at 86.2 million, a decrease of 7.4% from yesterday’s trade. They valued at PKR 4.8 billion.
Cement, Food & Personal Care Products and Fertilizer remained the top net gainers by the end of the day, after contributing a total of 235.27 points to KSE – 100. The top net losers of the session were the Oil & Gas Exploration Companies after they took away 57.68 points from the 100 index.
A total of 64 companies within KSE – 100 ended the day positively while 26 ended negatively.
KSE All Share Index took a slightly larger leap of 298 points to end the day at 29,218 points. It peaked at 29,262 points and the lowest it dropped was to 28,826 points. A sum of 141.6 million shares were traded today, valuing at PKR 6 billion.
Cement led the sector turnover after trading 33.6 million shares. Commercial Banks with 11.8 million shares and Technology & communication with 11.5 million shares followed behind.
Within KSE, 204 companies ended the session in the green while 82 of them ended in the red.
|
Net Gainers |
||
|
Symbol |
Companies |
Net Change |
|
NESTLE |
Nestle Pakistan Limited |
520.00 |
|
COLG |
Colgate-Palmolive Pakistan |
135.00 |
|
PAKT |
Pakistan Tobacco Company Limited |
102.12 |
|
SAPT |
Sapphire Textile Mills Limited |
27.42 |
|
WYETH |
Wyeth Pakistan Limited |
25.00 |
|
Net Losers |
||
|
Symbol |
Companies |
Net change |
|
PMPK |
Phillip Morris Pakistan Limited |
-137.27 |
|
BHAT |
Bhanero Textile Mills Limited |
-40.74 |
|
INDU |
Indus Motor Company Limited |
-29.79 |
|
MARI |
Mari Petroleum Company Limited |
-23.20 |
|
ATLH |
Atlas Honda Limited |
-11.96 |
|
Volume Leaders |
||
|
Symbol |
Companies |
Volume |
|
FCCL |
Fauji Cement Company Limited |
17,741,500 |
|
TRG |
TRG Pakistan Limited |
8,054,000 |
|
FFL |
Fauji Foods Limited |
6,819,000 |
|
KEL |
K-Electric Limited |
5,392,000 |
|
UNITY |
Unity Food Limited |
5,014,000 |
Fertilizer prices surge by Rs 50 per bag
According to industry sources, fertilizer prices have increased by Rs 50 per bag to around Rs 1,630 to Rs 1,640 per bag.
The average Dealer transfer Price (DTP) of Urea for manufacturers has been increased to around Rs 1,570 – Rs 1,580 per bag, which was previously trading at about Rs 1,520 per bag.
According to data from the Pakistan Bureau of Statistics, fertilizer prices have been consistently going up since March 2018.
Analysts have not ruled out a further rise in prices due to the constantly low urea inventory levels that have come about as a result of supply side interruption.
In June 2018, lack of sufficient natural gas supply interrupted operations at Agritech Limited (AGL). As a result, urea production fell by 6.5% as compared to the year before. By the end of June, urea inventory plunged to a 39 month low at 190,000 – 200,000 tons.
“Urea inventory levels are expected to clock in at around 200,000 tons, its lowest level since August 2015,” says Syed Khurram Mohiuddin, analyst at BMA Capital. “Urea inventory levels have averaged around 450,000 tons during the past six years in the month of June,” he added.
Saqib Hussain, analyst at Sherman Securities, holds the view that, “considering the fact that local urea prices are 22% lower than international urea prices, local manufacturers have enough room to pass on the cost pressures.”
SECP concludes efforts for introduction of regulatory regime for professional valuers
Islamabad, July 17: Securities and Exchange Commission of Pakistan (SECP) has concluded its efforts to introduce regulatory regime for registration and governance of professional valuers.
The SECP came to this decision after conducting consultative sessions with various stakeholders, including State Bank and Pakistan Banks Association (PBA), which represented the entire banking industry, i.e., the largest client of professional valuers. The SECP also invited comments from professional valuers during two roundtable meetings and through placement of draft registration regulations on the SECP’s website.
The SECP has observed that State Bank, being the regulator of banking industry is already supervising the valuation services through PBA wherein the professional valuers have to get registered with the PBA.
Moreover, professional valuers raised serious concerns, arguing that the subject regulation would complicate the registration regime. They also argued that the regulation would increase the cost of doing business due to simultaneous registration of professional valuers by the SECP and PBA. The SECP further observed that services being provided by valuers are similar to those provided by other professional experts, i.e., auditors, actuaries, engineers, who are regulated through respective professional institutes.
In view of the above and due to the shared nature of regulatory jurisdiction exercised by various other stakeholders, it was also recommended that a self-regulatory professional institute for governance and regulation of valuers be established in consultation with the stakeholders. This institute shall undertake the registration of professional valuers as well as look after its allied matters independently.
China’s new energy power generation sees faster growth
China reported faster growth in new energy power generation in June, official data showed Tuesday.
"The growth of electricity generated by new energy accelerated markedly, while thermal and hydro power saw slower growth," said Yan Pengcheng, spokesperson for the National Development and Reform Commission (NDRC), at a press conference.
In June, nuclear power generation increased 19.3 percent year on year, compared with 15.1 percent in May, according to NDRC data.
Electricity generated by wind and solar rose 11.4 percent and 21.1 percent, respectively, compared with 6.7 percent and 14.8 percent in May.
Thermal and hydro power output climbed 6.3 percent and 3.7 percent, respectively, down by 4 percentage points and 3.2 percentage points from May, Yan told reporters.
China is promoting new energy to cope with pollution and boost growth quality.
Overall electricity output rose 6.7 percent year on year last month, while consumption went up 8 percent year on year, the NDRC data showed.
In the first half of the year, power generation increased 8.3 percent year on year, slower than the 8.5-percent growth in the first five months.
(APP)
