B+ Weekly Analysis 2015

• Pakistan's first local coal‐fired project of 660MW to be established by SECMC has reportedly achieved financial close with the help of federal government
• KEL are expected to finalize a revised PPA and GSA during the second round of talks to be held on September 7, 2015
• Amreli Steels Limited is all set to launch its IPO in mid‐September and hopes to raise PKR3.37bn for the expansion. 74 mn shares will be offered; 75% of which will be offered to institutions and high net‐worth individuals and the rest to general public 
• PPL has made another hydrocarbon discovery at its exploration well Fazl X‐I located in Hala block.
• Gas prices revised upward, POL products' prices slashed
• Gas distribution companies comes out as a winner where both gas utilities SSGC and SNGP remain upbeat during the week
• Gas tariff hike in the range of 10%‐63% for the industrial sector acted as a major dampener during the week particularly for the fertilizer sector, though some support came through subsequent urea price increase (+PkR159/bag)
• Ministry of Power & Natural Resources reducing fuel prices by PkR3.0/ltr
• CPI for Aug’15 reading at 1.72%YoY vs. 1.8%YoY in Jul’15
• GoP borrowing PkR 187.9 billion through MTB auction where cut‐off yields remained unchanged
• Expectations of GoP and K‐Electric to finalize a revised Power Purchase Agreement (PPA) and Gas Supply Agreement (GSA) during the second round of talks to be held on Sep 07’15 

B+ Weekly Analysis 2015

• Trading sessions marred by heightened volatility and prevalence of adverse external factors (tumbling Asian markets, volatility in global oil prices)
• Inking of a MOU by the three stock exchanges of the country to incorporate a unified Pakistan Stock Exchange
• Karachi Stock Exchange (KSE), Lahore Stock Exchange (LSE) and Islamabad Stock Exchange (ISE) have signed an MOU (Memorandum of Understanding) to integrate the 3 stock exchanges to form uniform exchange called Pakistan Stock Exchange (PSE)
• SBP stating that it expects the PkR to remain stable against the US$ as the Rupee declined 2.9%WoW against the Greenback
• Banking sector also came under the axe (↓94pts) with investors speculating another interest rate cut in the backdrop of easing inflationary pressures amidst falling crude. MCB and OGDC were the prime negative index movers, eroding 81 and 61pts from the index
• Foreigners for the consecutive second week remained net sellers, offloading USD42mn worth of shares during the week
• Global markets turn positive during the week post stiffness over China's slow down, weak currency, and strong US$ dollar which had led foreign outflow in the equities
• On the contrary, global crude prices showed massive recovery of over 10% on Thursday, providing oil stocks the much-needed momentum
• Government of Pakistan has taken a serious note of a highly significant decline ‐ about 12% in textile exports of the country during July and called an emergency meeting. According to the latest figures released by the PBS, country's textile exports declined to USD1.03bn in July 2015 from USD1.16bn
• US has reauthorised GSP status for Pakistan. GSP programme has been renewed through Dec 31, 2017 and will be effective retrospectively between Aug 1, 2013 and July 28, 2015
• Nissan Motors of Japan is exploring the possibilities of re‐launching its different models along with Datsun in Pakistan depending on upcoming auto policy for the next five years