Market volatility & political uncertainty
Oct 07, 2021
On Market Front
This week KSE100 index lost 202 points to close at 44,871 points. The market remained volatile throughout the week due to commodity prices, including oil & coal prices reaching an all-time high due to the resumption of demand from developing countries and disruption in the global supply chain. Other negative triggers were the rupee depreciating against the dollar that raised concern about the economy & possible sanctions by the USA on Pakistan if found involved in supporting Taliban takeover in Afghanistan.
The Organic Meat Company Ltd (0.75%) has been awarded a USD 1mn contract for the supply of frozen meat to Saudi Arabia. TOMCL is also the first and only company to be approved by Saudi Arabia and Drug Authority (SFDA) to export frozen meat via sea to Saudi Arabia.
Frontier Foundry Steel, has appointed a Financial Advisory Consortium (FAC), comprising Habib Bank Limited (0.68%), Bank Alfalah Limited (1.05%), AKD Securities Limited, and Alfalah CLSA Securities to advise the Company for a possible listing at Pakistan Stock Exchange.
On Economic Front
IMF & PAKISTAN TALKS AGAIN
The cement sector posted a healthy growth of 22.77% in August 2021. The total cement despatches during the month were recorded at 4.34mn tons against 3.53mn tons during the same month of last year.
EVERYDAY ITEM EXPENSIVE
Consumer prices influenced by faster rupee depreciation and rising energy prices sent inflation to 9% in September. Over the past three months, fresh vegetables, fruits, and meat prices have also posted a persistent increase in major urban centers.
PAKISTAN GSP PLUS STATUS
The European Commission last week proposed new EU regulations for the 2024-34 GSP Plus scheme. Pakistan would have to submit a new application for seeking extension in the existing Generalised System of Preferences Plus (GSP Plus) scheme beyond 2023. The main beneficiary of the GSP Plus scheme would be the Textiles and Garments sector.