Falling coal prices & positive triggers made investors happy
07 Nov, 2021
On Market Front
TRACKING KSE-100
This week, the market witnessed a bull run, and the index increased by 1,111 points to close at 47,296 points. On the political front, the Government bowed down and reached an agreement with TLP. On the economic front, coal prices crashed providing respite to the cement & power industry. The Rupee appreciated to PKR 170 during the week after falling to its historical low of PKR 176 against the US Dollar.
EASYPAISA IS ON SALE!
Muslim Commercial Bank (MCB: +1.22%) announced that it is starting due diligence to acquire 55% of the shareholding of Telenor Microfinance Bank (commonly known as EasyPaisa) from the Telenor group. If this transaction goes through, Telenor group will make a complete exit from the financial industry in Pakistan. Previously it sold its 45% to Ant Financials (a subsidiary of Alibaba group) at a valuation of USD410 mn. Telenor bank has been struggling since COVID19, its lending business suffered losses but the payment business is strong.
GREEN LIGHT FOR ACQUISITION!
The competition commission of Pakistan has given a go-ahead to Packages Limited (PKGS: -0.77%) for the acquisition of Tri Pack Flims Limited (TRIPL: -0.41%) from Mitsubishi Corporation. As per the Joint Venture agreement, Packages Limited had the first right of refusal if Mistibushi decides to sell its 19.33% stake in Tri Pack.
On Economic Front
BRACE FOR THE IMPACT
Gas shortages are imminent as two LNG suppliers have defaulted on their November deliveries. The situation will remain the same throughout the winter. On the other hand, Inflation is increasing due to an increase in the price of both perishable and non-perishable food items, fuel & electricity prices. Inflation may continue to follow an upward trajectory as the government has increased petroleum prices and electricity tariffs.
STIMULATING THE ECONOMY
PM Imran Khan has announced Pakistan’s Largest social benefit program of PKR 120bn to support the families who are the most vulnerable to financial shock due to rising inflation. The subsidy includes a 30% discount on the food item which includes ghee, pulses, and wheat.
TWEET OF THE WEEK
