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Weekly SPI Decreases by 0.42 Percent
June 05, 2020 (MLN): The Weekly Sensitive Price Indicator (SPI) for the Combined Group decreased by 0.42% during the week ended Jun 04, 2020 while the SPI increased by 9.17% compared to the corresponding period from last year.
According to data released by the Pakistan Bureau of Statistics (PBS) the Combined Index was at 127.78 compared to 128.32 on May 28, 2020 while the index was recorded at 117.05 a year ago, on Jun 06, 2019
Out of the 51 monitored items, the average price of 15 items increased, 12 items decreased whereas 24 items registered no change during the week.
The weekly SPI percentage change by income groups showed a mixed trend with SPI ranging between -0.67% and 0.07%.
The Lowest Income Group witnessed a weekly increase of 0.07% while the highest income group recorded a decrease of 0.67%.
On an yearly basis, analysis of SPI change across different income segments showed that SPI increased across all quantiles ranging between 7.3% and 13.38%.
Yearly SPI for the Lowest Income Group increased by 11.16% while the highest income group recorded an increase of 7.3%.
The average price of Sona urea stood at Rs.1637 per 50 kg bag which is 1.09% lower than last week’s price and 11.47% lower when compared to last year.
Meanwhile, average Cement price was recorded at Rs.553 per 50 kg bag, which is 0.54% lower than the previous week and 2.79% higher than prices last year.
Copyright Mettis Link News
Wall Street jumps after surprise job additions in May
June 05, 2020: U.S. stock indexes jumped on Friday, with the Nasdaq Composite less than 1% away from a record high, after a closely watched report showed surprise job additions in May, lending weight to hopes of a faster economic rebound from a coronavirus-led slump.
Data from the Labor Department showed nonfarm payrolls rose by 2.509 million jobs last month after a record plunge of 20.687 million in April, and the unemployment rate unexpectedly fell to 13.3% in May from 14.7% in April.
"It's shocking, it's a refreshing thing to experience, a very positive and a far better-than-expected report," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
"The unemployment rate was likely to peak in May and then get better from there, but it looks as though it might have peaked in April, which is a very positive development for the economy."
The S&P 500 banks sub-index, considered interest-rate sensitive, jumped 4.8% as U.S. Treasury yields rose after the data.
Boeing Co gained 9.2%, the biggest boost to the Dow Jones index, on hopes of a pickup in air travel a day after American Airlines Group Inc and United Airlines said they would boost their U.S. flight schedule next month.
Reuters
U.S. labor market unexpectedly improves in May
June 05, 2020: The U.S. economy unexpectedly added jobs in May after suffering record losses in the prior month, offering the clearest signal yet that the downturn triggered by the COVID-19 pandemic was probably over, though the road to recovery could be long.
The Labor Department's closely watched employment report on Friday also showed the jobless rate falling to 13.3% last month from 14.7% in April, a post World War Two high. It came on the heels of surveys showing consumer confidence, manufacturing and services industries stabilizing.
Economic conditions have significantly improved as businesses reopened after shuttering in mid-March to slow the spread of COVID-19.
Nonfarm payrolls rose by 2.509 million jobs last month after a record plunge of 20.687 million in April. Economists polled by Reuters had forecast the unemployment rate jumping to 19.8% in May and payrolls falling by 8 million jobs.
U.S. stock index futures sharply extended gains. The dollar rose against a basket of currencies. U.S. Treasury prices fell.
"These improvements in the labor market reflected a limited resumption of economic activity that had been curtailed in March and April due to the coronavirus pandemic and efforts to contain it," The Labor Department said in a statement.
Reuters
ADB and Pakistan sign an agreement for $300 million Emergency COVID-19 Loan
June 5, 2020: The Asian Development Bank (ADB) and the Government of Pakistan today signed the loan agreement for a $300 million emergency assistance loan initially approved by the bank on 19 May.
The Secretary of the Economic Affairs Division Noor Ahmed and ADB Country Director for Pakistan Xiaohong Yang signed the agreement on the loan, which will strengthen Pakistan’s public health response to the novel coronavirus disease (COVID-19) pandemic and help meet the basic needs of the poor and vulnerable.
Secretary of the Poverty Alleviation and Social Safety Division Yousuf Khan and Chief Executive of the National Disaster Risk Management Fund (NDRMF) Nadeem Ahmed signed the project documents. Parliamentary Secretary for Economic Affairs Division, Mohammad Yaqoob Shaikh witnessed the signing ceremony.
“The ADB assistance signed today will support Pakistan’s social protection program Ehsaas to continue providing emergency cash transfers to poor families and women,” said Ms. Yang. “The project will also help swiftly upgrade medical facilities and procure necessary supplies for hospitals and frontline health workers, meet rapid training and capacity building needs, and purchase emergency vehicles to strengthen rescue capacity in remote border areas.”
In April, ADB reallocated $30 million from the National Disaster Risk Management Project to support Pakistan’s pandemic response and the NDRMF Board of Directors allocated an additional $20 million from earned interest from the Endowment Fund capitalized under the project.
The Government of Norway has also contributed $5.28 million grant to strengthen the emergency response system in Khyber Pakhtunkhwa province amid the COVID-19 crisis.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
Press Release
ADB, Pakistan sign $5.28 milllion Norwegian Grant to strengthen Pakistan’s COVID-19 response
June 5, 2020: The Asian Development Bank (ADB) and the Government of Pakistan signed an agreement today to expand support for Pakistan’s response to the novel coronavirus disease (COVID-19) pandemic in Khyber Pakhtunkhwa province through the National Disaster Risk Management Fund (NDRMF).
The Secretary of Pakistan’s Economic Affairs Division Noor Ahmed and ADB’s Country Director for Pakistan Xiaohong Yang signed the agreement. After the signing ceremony, ADB Country Director Xiaohong Yang met with Chargé d’affaires of the Royal Norwegian Embassy in Islamabad Sigbjørn Tenfjord to discuss the project.
Under the agreement, the Government of Norway will provide a $5.28 million grant to strengthen the emergency response system in Khyber Pakhtunkhwa province amid the COVID-19 crisis. The grant is drawn from the unused resources of the Pakistan Earthquake Fund and will be administered by ADB.
“The grant will help provide emergency response services, procure necessary equipment and supplies to poor communities in Khyber Pakhtunkhwa’s remote areas,” said Ms. Yang. “This reflects the enduring partnership and commitment of the Norwegian government and ADB to supporting disaster risk reduction in Pakistan.”
In May, ADB reallocated $30 million from the National Disaster Risk Management Project to support Pakistan’s pandemic response and the NDRMF Board of Directors allocated an additional $20 million from earned interest from the Endowment Fund capitalized under the project.
Norway has provided significant financial and technical support to Pakistan, including in good governance, education, health, and emergency assistance. Norway worked with ADB and other partners to help Pakistan swiftly rebuild and recover from the 2005 earthquake. Following the heavy floods which devastated large parts of Pakistan in 2010 and 2011, Norway provided more than $56.4 million in aid for flood-affected families and to restore basic services.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
Press Release
PM says economic stability, job creation his top priority amid COVID-19 situation
Jun 05, 2020: Prime Minister Imran Khan Friday said the priority of his government was to stabilize the economy with a focus on job creation for the youth so as to counter the negative impact of the COVID-19 pandemic.
Chairing here a high-level meeting to review the proposals for the federal budget 2020-21, the Prime Minister said every section of the society was affected by coronavirus besides putting an impact on the government's efforts towards development.
He said keeping in view these stark realities, the first priority of the government was to promote those sectors which could create job opportunities for youth and boost the economic process.
The Prime Minister said a reduction in non-development expenditure, especially a cut in unnecessary government expenditure, was the government's priority from day one.
Adviser to PM on Finance Dr Abdul Hafeez Sheikh briefed the Prime Minister on the strategy for implementing the government's priorities, keeping in view the status of revenue, expenditure and ground realities of the budget for next financial year.
Considering the issue of subsidies in various sectors and the provision of financial assistance by the government, Prime Minister Imran Khan said the subsidy given by the government was in fact the tax collected by the people and added that it was important to optimally utilize this money.
He said it was vital that not only this money was used efficiently to achieve desired goals but also to ensure that the money was spent on the deserving.
The Prime Minister said the present economic situation demanded that the pace of reforms be accelerated so that unnecessary burden on the people could be minimized and relief be provided to them.
APP
Gold edges lower by Rs 100 per tola to Rs 97,600
June 05, 2020 (MLN): The price of 24 Karat-Gold edged lower by Rs 100 to Rs 97,600 per tola in bullion markets as local equities rose today on trade data. The precious yellow metal of 24-Karat had closed at Rs 97,700 per tola on the last day.
According to the Karachi Sarafa Association, the price of 10-gram gold also dropped by Rs 86 to settle at 83,676 Rs against Rs 83,762 on the last trading day.
On the other hand, the silver prices remained flat at Rs 1,050 per tola. Similarly, 10-gram silver stayed stagnant at Rs 900.20.
In the global market, gold prices inched lower by $1 to clock in at $1,706 per ounce while silver was valued at $17.64 per ounce.
Copyright Mettis Link News
Closing Bell: Crazy Train
June 5, 2020 (MLN): The capital markets rebounded from yesterday’s close and ended the last day of the week on a positive note on the back of improved investors’ sentiments.
The KSE-100 Index gained 231 points to finish at 34,350-level i.e. 0.68% higher than the previous closing.
Yesterday, the Pakistan Bureau of Statistics (PBS) released trade deficit data which showed improvement of 35%, MoM, in May’20, giving market participants hope for recovery. Moreover, SBP’s forex reserves declined this week by $1.7bn to $10.3bn, this decline is primarily attributed to the government's external debt repayment, as per the closing note of Ismail Iqbal Securities.
The Index traded in a range of 286.62 points or 0.84 percent of the previous close, showing an intraday high of 34,367.62 and a low of 34,081.00.
Of the 87 traded companies in the KSE100 Index, 57 closed up 29 closed down, while 1 remained unchanged. The total volume traded for the index was 53.70 million shares.
Sectors propping up the index were Cement with 54 points, Oil & Gas Exploration Companies with 50 points, Fertilizer with 46 points, Pharmaceuticals with 45 points and Textile Composite with 12 points.
The most points added to the index was by ENGRO which contributed 41 points followed by POL with 21 points, LUCK with 15 points, SEARL with 13 points and MARI with 13 points.
Sector-wise, the index was let down by Commercial Banks with 13 points, Automobile Assembler with 3 points, Oil & Gas Marketing Companies with 3 points, Miscellaneous with 1 point and Transport with 1 points.
The most points taken off the index were by MCB which stripped the index of 12 points followed by BAFL with 5 points, PSO with 3 points, SNGP with 3 points and KAPCO with 2 points.
All Share Volume decreased by 54.51 Million to 89.13 Million Shares. Market Cap increased by Rs.38.34 Billion.
Total companies traded were 319 compared to 341 from the previous session. Of the scrips traded 191 closed up, 103 closed down while 25 remained unchanged.
Total trades decreased by 22,027 to 48,040.
Value Traded decreased by 1.59 Billion to Rs.3.96 Billion
| Company | Volume |
|---|---|
| Maple Leaf Cement Factory | 6,651,500 |
| Jahangir Siddiqui & Co. Ltd. | 5,206,500 |
| TRG Pakistan | 4,351,500 |
| Unity Foods | 3,834,000 |
| MACPAC Films | 3,655,500 |
| Hascol Petroleum | 3,632,000 |
| Hum Network | 3,480,000 |
| Pioneer Cement | 3,401,000 |
| Kot Addu Power Company | 2,151,000 |
| Pak Elektron | 2,079,500 |
| Sector | Volume |
|---|---|
| Cement | 16,108,400 |
| Technology & Communication | 10,869,300 |
| Inv. Banks / Inv. Cos. / Securities Cos. | 7,571,400 |
| Oil & Gas Marketing Companies | 5,232,212 |
| Textile Composite | 5,215,100 |
| Miscellaneous | 4,903,200 |
| Power Generation & Distribution | 4,087,666 |
| Commercial Banks | 3,985,014 |
| Food & Personal Care Products | 3,972,850 |
| Vanaspati & Allied Industries | 3,834,500 |
Copyright Mettis Link News
Tax filers increased from 1.6 mln to 2.6 mln in one year: Senate informed
June 5, 2020: Senate was informed today that the number of tax filers has increased from1.6 million to 2.6 million in a period of one year as a result of steps taken by the present government.
Minister for Industries and Production Hammad Azhar told the house during question hour that our tax collection also witnessed twenty seven percent growth before the breakout of Covid-19. He said the post pandemic has seen thirty percent decline in tax collection but expressed the confidence that the situation will improve as the business activities are being resumed.
The Minister said databases are being used to improve the tax collection. He said the government plans to phase out import based duties and focus on domestic taxation.
Responding to a supplementary question, the Minister informed the house that the losses of state owned enterprises surpassed the annual defense budget due to the indecisiveness and regressive policies of previous governments. He said the previous governments failed to revive or privatize Pakistan Steel Mills. Today the debt of Pakistan Steel Mills stands at 230 billion rupees. He said the government has now decided to lease out the core steel mills operations to revive Pakistan Steel Mills.
Minister for Industries Hammad Azhar said the government gave a stimulus package of 1200 billion rupees to support different segments of the society including the poor and the businesses during the Covid-19 pandemic. He said our initiatives have helped reduce the inflation rate from twelve percent to eight percent. He said we have also reduced the petroleum prices which are currently the lowest in the South Asian region.
Adviser on Commerce Abdul Razak Dawood told the house that Pakistan has got orders for the export of personal protective equipment against Coronavirus. He however said that surgical masks, N-95 and Tyvek gowns will not be exported.
The Adviser said the country’s fruits, vegetables, meat and poultry exports to the Middle Eastern countries witnessed a growth of thirty six percent over the last twelve months.
Responding to a question, Abdul Razak Dawood said Pakistan enjoys close and cordial relations with Turkey and is negotiating a Free Trade Agreement with it to promote trade relations.
Adviser on Parliamentary Affairs Zaheer ud Din Babar Awan laid before the house a copy of Money Bill, the Members of Parliament (Salaries and Allowances) Amendment Bill, 2020.
The Adviser said the government will not support this bill.
Earlier, the house offered fateha for those who died of coronavirus including the parliamentarians and the victims of Karachi plane crash. God Almighty blessings were also sought to rid the country of this pandemic.
Senate began its session at the parliament house in Islamabad today with Chairman Sadiq Sanjrani in the chair.
Radio Pakistan
PMEX Commodity Index inches up by 8 points only
June 05, 2020: On Thursday at Pakistan Mercantile Exchange Limited, PMEX Commodity Index inched up by 8 points to settle at 4,248. The traded value of Metals, Energy and COTS/FX was recorded at PKR 6.714 billion and the number of lots traded was 9,124.
The major business was contributed by Gold amounting to PKR 3.216 billion, followed by Currencies through COTS (PKR 1.798 billion), Silver (PKR 622.327 million), NSDQ 100 (PKR 415.557 million), DJ (PKR 235.838 million), Crude Oil (PKR 157.145 million), Platinum (PKR 141.060 million), SP500 (PKR 61.560 million), Natural Gas (PKR 55.120 million) and Copper (PKR 11.380 million).
In agriculture commodities, two lots of Wheat amounting to PKR 8.551 million, one lot of Corn amounting to PKR 2.679 million and 5 lots of Cotton amounting to PKR 2.461 million were traded.
Press Release
