100 Index managed to close yesterday’s session in green despite the recent bout of depreciation. The index moved upward yesterday primarily due to the rise in fertilizer and cement prices by manufacturers. The benchmark KSE 100 Index saw the week opening in red for being under severe strain from the receding value of Rupee against the greenback.
According to some exchange dealers, the depreciation will persist in the coming days as well as demand for greenback continues to soar. State Bank of Pakistan (SBP) also announced the Foreign Direct Investment numbers during for the outgoing fiscal year reporting a meagre growth. Federal Board of Revenue (FBR) has ruled another extension in Amnesty Scheme after July 31, 2018.
100 index closed the Tuesday’s session in green after Cement and Fertilizer stocks help index gain positive momentum. According to latest news, Cement producers raised their prices by Rs. 10/bag and Urea prices were also increased by Rs. 50/bag. Banks/DFIs, Companies, Individuals and Insurance Companies flocked to buy underpriced stocks during the later hours of the session sweeping more than $14 million worth of stocks.
Rupee continued its fall yesterday after it another 26 paisa to reach Rs. 128.26 against dollar. Dollar on Tuesday gained as much as 75 paisa before closing at 128. However, further decline in the dollar was contained by excessive selling of dollar in the market after it rose by more than 6.71 rupees in the in two days. Analysts anticipate a significant aftershock to the economy from incumbent bouts of depreciation hinting a rising inflationary pressure and interest rate hikes in the coming months. Exchange dealers warn that with the continuous rise in demand, the dollar will gain further against the Rupee in coming few weeks.
The SBP released the FDI numbers for the outgoing fiscal year yesterday reporting a meagre rise of 1 percent rise in total FDI against the same period last year. According to the latest data, Direct Foreign Investment (DFI) during the year clocked in at $2.767 billion, with $2.5 million issuance of bonds taking the total to $4.977 billion in fiscal year 2018. In a positive, outflows from the portfolio investors took a dip downward reaching $241 million from $141 million same period last year. China continued to remain the leading FDI contributor in Pakistan, with inflows at $1.591 billion, UK following behind with $278 million and Hong Kong investments at $141 million.
Despite the lukewarm success in Amnesty Scheme, 2018 the FBR yesterday announced that it is not looking to extend the deadline for the Amnesty Scheme beyond the stipulated date of July 31, 2018. The announcement comes after FBR announced that it has received all the pertinent details of immovable properties owned by the Pakistanis in UK with the help of Organization of Economic Development (OECD) and UK Tax Authorities. The FBR has undergone an agreement with the OECD whereby it will receive information on Pakistani account holders and their properties stashed in UK. Furthermore, the agreement will allow Pakistan access to information on moveable properties held by Pakistanis in UK after September, 2018.