B+ Weekly Analysis 2015

• Some renewed interest was seen in the textile sector as the Govt. agreed to announce textile package by the end of Oct 2015
• Pakistan and Russia inked an agreement to lay 1000kms Karachi-Lahore LNG pipeline cos��ng US$2bn
• Export/Import for Sept'15 at US$1.7bn/US$3.4bn, down 20%/23%YoY, with net deficit of US$1.7bn down 25% according to PBS figures
• The GoP borrowed PkR170bn through MTB auctions with 3mth, 6mth and 12mth cut-off yields coming in at 6.44%, 6.48% and 6.48% respectively
• Arablite dropped to US$46.89/bbl from US$49.63/bbl last week though Oil sector witness 4% appreciation in value
• Confusion still prevails over the taking back of gas tariff hike and reduction in price per bag, therefore the sector remained under pressure where the major players in the fertilizer sector closed in the red zone
• News of LUCK expanding in the North gives rise to speculation that other major players will do the same, which can eventually lead to the big players to get into a price war to capture market share, although this speculation will become valid as and when these expansions come on line not before at least 2‐3 years
• The Ministry of National Food Security and Research notified detailed procedure of the subsidy on DAP, NP and NKP, which would be paid after the sale of bagged fertilizers on the basis of sales tax invoice