FDM Capital Securities (Pvt.) Limited
NEWS BRIEFINGS
Head Office: 119. Tower B, Saima Trade Tower, I.I. Chundrigar Road, Karachi – Pakistan.
UAN: +9221 111-336-336 Fax: +9221 32216094 Website: www.fdm.com.pk
Wednesday, July 22, 2015
KSE 100 Indices
ANALYSIS ON NEWS & IMPACTS
Index
Positive
Oil prices fell further in Asia, with US crude falling below USD 50 a barrel as demand for the dollar-priced commodity
takes a hit from a strong US currency. Expectations of more Iranian crude flooding the oversupplied global market
within months following a deal on the country’s nuclear ambitions continue to drag prices lower. WTI for August
delivery fell 16 cents to USD 49.99 and Brent crude for September dropped 11 cents to USD 56.54 a barrel in latemorning trade. (PT)
Silk Bank moves to meet capital requirements
Neutral
Silk Bank Ltd presented a tentative timeline about its much-awaited rights share issue in a notice sent to the stock
exchange. The bank hopes to wrap up the entire process by September’24. The bank is planning to issue over 6.41bn
rights shares at PKR 1.56 per share to raise PKR 10bn. The book-closure period started from last Monday and will last till
July’20. The issue is at a big discount of PKR 8.44 per share from the par value of PKR 10. The bank has entered into an
underwriting agreement with Arif Habib Ltd for the issue. (Dawn)
Govt to make last-ditch effort to resolve USD 800mn Etisalat payment
Neutral
The PML-N government would make last-ditch effort in next few days to resolve the prolong dispute of pending
payment amounting USD 800mn with Etisalat, buyer of 26% stake in PTCL. According to Ishaq Dar, Pakistan had offered
to give only 26% amount of the 31 remaining properties to Etisalat, as they owned 26% shares of PTCL, which is not
acceptable for them. Therefore, he is said to make another try to resolve the issue. (The Nation)
Bank investments up 37% from CY14
Neutral
Investment of all scheduled banks stood at PKR 5985bn in the week ending July’3, according to central bank data
released recently. This shows an improvement of 37%YoY, as the corresponding figure last year stood at PKR 4346bn.
And the current week’s level is up 3% over the preceding week’s figure of PKR 5812bn. (Dawn)
Pakistan’s trade deficit widens to USD 22bn in FY15
Neutral
The government has prepared a plan to increase textile exports from the existing USD 13bn to USD 26bn in the next five
years. Under the plan, special incentives would be given to small and medium enterprises. New schemes and
initiatives will also be launched to increase usage of information communication technology. The plan envisages
making the textiles sector compliant with labour and environment rules and conventions domestically and
internationally. (BR)
SSGC, SNGPL seek 45% increase in gas price
Chg. Volume
(%) (Shr mn)
0.52% 601.51
0.53% 178.15
0.47%
64.84
0.09% 101.91
Trad val.
(Rs mn)
14,089
9,686
5,843
5,913
Mkt. Cap.
(Rs trn)
7.73
2.01
1.33
0.88
Source: KSE
KSE 100 Index & Volume
Volume (mn Shrs)
KSE 100
40,000
400
30,000
300
20,000
200
10,000
100
-
-
Source: Bloomberg
Foreign & Local Investments
FIPI US$
US$ (000)
Client Type
16-Jul-15
F-Individuals
0.03
F-Corporates
0.74
Overseas Pak
(0.09)
Negative
Pakistan merchandise trade deficit surged by 10.68% to USD 22bn in FY15 from USD 19.9bn in the preceding fiscal year.
Exports have been witnessing a falling trend since July’14. However, imports rebounded which was reflected in higher
volumes of machinery, food products, transport, agriculture, chemicals and textile groups. The GoP has projected a
trade deficit target of USD 17.2 billion for the fiscal year. (PT)
Government to increase textile exports to USD 26bn
All Shares Index
KSE 100
KSE 30
KMI 30
Chg.
(Pts.)
128.06
187.91
103.57
52.09
21-Jul-14
20-Aug-14
19-Sep-14
19-Oct-14
18-Nov-14
18-Dec-14
17-Jan-15
16-Feb-15
18-Mar-15
17-Apr-15
17-May-15
16-Jun-15
16-Jul-15
Oil prices fall further on strong dollar, WTI below USD 50
Index
Levels
24,890
35,888
22,350
59,423
Total
0.67
LIPI US$
US$ (000)
Client Type
16-Jul-15
Individuals
(3.56)
Companies
3.55
Banks/DFIs
(3.93)
NBFC
0.49
Mutual Funds
3.74
Other Org.
(0.74)
BP Trading
(0.22)
0.74
(0.67)
15-Jul-15
(0.03)
1.77
(1.00)
15-Jul-15
3.13
1.39
(7.52)
(0.14)
2.69
0.07
(0.37)
(0.74)
Source: NCCPL
Board Meetings
COMPANY
Date
TIME
Highnoon Laboratories Ltd
22.07.2015
Pakistan Tobacco Co. Ltd
22.07.2015
2:00 p.m.
United Bank Limited
23.07.2015
10:00 a.m.
Wyeth Pakistan Limited
23.07.2015
11:00 a.m.
10:00 a.m.
Neutral
SNGPL and SSGC have requested the government to approve increase in gas prices by at least 45% saying that as a result
of consumer gas price freeze the distribution company’s debt has crossed PKR 100bn mark in the wake of higher gas
prices to producers. During past three years the government due to political reasons did not increase the consumers
gas prices, resultantly over 45% accumulated gas price increase is now required to keep the gas companies afloat. To
protect both the gas companies from bankruptcy, an increase of PKR 125MMBTU in consumer gas price is required. (BR)
This report has been prepared by FDM Capital Securities (Pvt.) Limited and is provided for information purposes only. Under no circumstances it is to be used or considered as an offer to sell, or a solicitation of any
offer to buy. This information has been compiled from sources we believe to be reliable, but we do not hold ourselves responsible for its completeness or accuracy. All opinions and estimates expressed in this report
constitute our present judgment only and are subject to change without notice. This report is intended for persons having professional experience in matters relating to investments.