July 28, 2019 (MLN): The KSE-100 index lost approximately 356 points during the week and closed at 32,103-mark. The benchmark index remained positive in the first two sessions of the week because of PM Imran Khan’s successful visit to the United States.  

However, local investors quickly lost interest and reverted to profit selling in the remaining three days, which causing the index to go down by 1.1% on a week-on-week basis.

Meanwhile, the following economic data was released over the course of last week:

• Pakistan's Forex Reserves decreased by USD 386.80 Million or 2.54% and the total liquid foreign reserves held by the country stood at USD 14,862.40 Million on Jul 19, 2019.
• The Weekly Sensitive Price Indicator (SPI) for the Combined Group increased by 0.48% during the week ended Jul 18, 2019 while the SPI increased by 15.62% compared to the corresponding period from last year.
• The total DAP offtake during the month of June was 158 thousand tonnes, which decreased by 16.9 percent over June, 2018.
• Urea sales witnessed a rise of 5.7 percent during the month of June 2019, as the total offtake during this period stood at 643 thousand tonnes as compared to the same period of last year.
• Total fertilizer offtake during the month of June, 2019 stood at 421 thousand tonnes, demonstrating an increase of 1.4 percent as compared to the corresponding period of last year.
• The gross sale of securities via Specially Convertible Rupee Accounts (SCRA) during the week was recorded at Rs.10.7 billion, which is around 2.8 times higher than the figures recorded last week.
• The overall output of Large Scale Manufacturing Industries (LSMI) decreased by 3.50% for July-May, 2018-19, as compared to July-May, 2017-18.
• The Banking sector spread remained static 5.78% for the month of June 2019, showing almost no change over prior month's spread.
• Pakistan's non-government sector has retired a net sum of Rs.123 billion in the first two weeks of Fiscal year 2020, of which Rs.52.14 billion were retired during the week ended July 12, 2019 and Rs.70.9 billion were retired in the first week.
• The government of Pakistan has retired a net sum of Rs.96 billion in the first two weeks of new fiscal year 2020, a breakdown of which shows that Rs.130.47 billion were retired during the week ended July 12, 2019 alone and Rs.34.3 billion were borrowed in the first week.
• The Cement sector has witnessed a depressing dispatch volume during FY19 as dispatches for the month of Jun 2019 decreased by 27% MoM to clock in at 3.01million tons.
• Among Pakistan’s top trading partners, China remained the top source of imports for Pakistan during FY19, followed by United Arab Emirates (UAE), Singapore and Saudi Arabia.

The various economic and policy-oriented developments that took place during the departed week include:

• On Friday, the agreement signed between Pakistan and Germany for financial assistance worth 22.4 million Euros to support existing projects in renewable energies, better grid connections and improved access to financial services.            
• On Thursday, Pakistan and Qatar reaffirmed the resolve to comprehensively upgrade bilateral relations in diverse fields including trade, investment, energy, aviation, agricultural, tourism, manpower and people to people contacts.
• On Wednesday, the State Bank of Pakistan (SBP) conducted an auction in which it sold PIBs worth Rs.309.415 Billion for 3, 5 and 10 years in Fixed and Floating rate bonds. Cut off Yields for the Fixed Rate Bonds increased by 55 basis points to 14.25 percent for 3 years, remained the same at 13.80 percent for 5 years while the 10 year Cut off declined by 15 basis points to 13.55 percent.
• The same day, Chinese investors worked out a comprehensive business plan to provide five important services to citizens of Pakistan in six big cities, initially investing $20 million, with future prospects of $600 million.
• On Tuesday, Federal Board of Revenue (FBR) issued a notification regarding increase in the valuation rates of immovable property in 20 major cities of the country for the purpose of federal tax collection on sale and purchase of commercial and residential property.
• Meanwhile, on Monday, FBR issued a circular in which it clarified that the amendment regarding provision of National Identity Card (CNIC) number at the time of purchases had been made in the Sales Tax Act, 1990 (Section 23) and not in any other taxation statute. This clearly means that this provision was only applicable if purchases were made from a 'Sales Tax Registered person'.
• Pakistan Tobacco Company observed a Rs.708 million increase in its half yearly net income which translates into a rise of 11% year-on-year and a net profit of around Rs.7 billion (EPS: Rs.27.61 per share).
• Pak Suzuki Motors Company held its board meeting today, i.e. July 24, 2019, wherein the directors of the company announced net losses of Rs. 544 million and Loss per share of Rs. 6.62 for the quarter ended June 30, 2019.
• Habib Bank Limited announced its financial earnings for the half year ended on June 30, 2019, as per which the bank has observed a decline in its after-tax profits by around 51.7% to Rs 3.9 billion from Rs 8.1 billion recorded in the same period last year.
• Sui Northern Gas Pipeline Limited witnessed nearly 31% improvement in its nine-monthly bottom-line gains (Rs.7.8 billion, EPS: Rs.12.33 per share) marked as of March 31, 2019.
• Fauji Foods Limited announced its financial results for the half year ended on June 30, 2019, as per which the company observed a significant increase in its losses by 59% to Rs 2.3 billion from Rs 1.47 billion incurred in the corresponding period last year.
• Fauji Fertilizer Bin Qasim Limited announced its financial results for the half year ended on June 30, 2019 wherein company’s losses after tax expanded 2x to Rs 3.5 billion with loss per share (LPS) recorded at Rs 2.95.

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