PACRA Morning Brief

4/7/23

The aim of this document is to inform the user about current news and events as gathered from various secondary sources of information such as research reports, newspapers
and websites. In addition, the Analyst preparing this report has also provided their own opinion on whether a particular news is favorable or unfavorable for the economy or
industry. This has been categorized under the word “Impact” which may be:
Positive, Negative OR Neutral
The “Impact” is limited in scope to the current days news and events only. It does not seek to provide an indication of past performance or an outlook for the future.
Economy
Impact: Positive

SBP extends the Rozgar scheme

• SBP has decided to extend the Rozgar scheme for another three months
and, in collaboration with the Government of Pakistan, has increased the
risk coverage for SMEs under the scheme.
• Effectively, this suggests that not only businesses can obtain loans to fund
their wages and salaries bill up to a period of 3 months from July till
September 2020, but can also get reimbursement for the wages and
salaries paid during April-June 2020. 
• The government of Pakistan has decided to extend the validity of its risk-
sharing facility (RSF) for another three months for SMEs and small
corporates with a turnover of up to PKR 2 billion and also enhanced the
risk coverage for SMEs from 40% to 60% First Loss on a portfolio basis.

Source: https://mettisglobal.news/sbp-extends-the-rozgar-scheme-for-supporting-employment-for-another-3-months
PACRA Morning Brief 4/7/23 2
Economy
Impact: Negative

Food inflation pushes CPI to 8.6% in June

• The Consumer Price Index (CPI) inflation rate increased to 8.6pc year-on-
year in June. The rate was 8.22pc year-on-year in May.
• According to the data, urban CPI accelerated to 7.6pc YoY in June as
compared to 7.3pc in May, while rural CPI climbed to 10.0pc YoY when
compared with 9.7pc in May. 
• This took the FY20 national CPI average to 10.8pc as against 6.8pc in
FY19.
• Higher food inflation was led by a spike in prices of wheat/flour, potatoes,
pulses, condiments and spices. This was somewhat countered by a
decline in tomato and onion prices.

Source: https://profit.pakistantoday.com.pk/2020/07/01/food-inflation-pushes-cpi-to-8-6pc-in-june/
PACRA Morning Brief 4/7/23 3
Economy
Impact: Neutral Impact: Neutral

Source: State bank of Pakistan (Interbank Rates); Forex.pk (Open market rates) Source: State Bank of Pakistan (KIBOR); Mutual Funds Association of Pakistan (PKRV)
PACRA Morning Brief 4/7/23 4
Capital Markets | PSX
Sector Lead: Madiha.Sohail@pacra.com Impact: Positive

KSE-100 welcomes FY21

• The Pakistan Stock Exchange (PSX) greeted the financial year 2020-21
(FY21) with positivity, as the benchmark index extended its rally from the
previous session, closing the session around 90 points shy of the 35,000-
mark.
• The KSE-100 Index followed a steady path throughout the session,
registering its intraday high at 34,924 after gaining 502 points. It settled
higher by 485 points or 1.41% at 34,907.
• Sectors that drove the index north included cement (+182.98 points), oil
& gas exploration (+127.77 points) and power generation & distribution
(+77.47 points).
• Among the companies, Lucky Cement (LUCK +95.90 points), Oil and Gas
Development Company (OGDC +71.80 points) and Hub Power Company
(HUBC +59.55 points) remained the top contributors to the index.

Source: https://profit.pakistantoday.com.pk/2020/07/01/kse-100-welcomes-fy21-with-485-point-rally/
PACRA Morning Brief 4/7/23 5
 Capital Markets | PSX
Sector Lead: Madiha.Sohail@pacra.com Impact: Positive
Top 10 Scrips Wednesday, July 1, 2020
KSE-100 Index Share Price %age % of Total KSE-
S. No. Scrip Volume
price Change Change 100 Volume
31-Mar 30-Apr 29-May 29-Jun 30-Jun 01-Jul
1 KEL 39,105,500 3.3  0.27  8.97% 19.9%

KSE-100 Index 29,232 34,112 33,931 34,182 34,422 34,889 2 HUMNL 30,679,500 13.5  0.98  7.81% 15.6%

Change in Index Points 1,208 953 236 242 240 467 3 TRG 26,473,000 30.0  2.11  7.57% 13.5%

Change in Index (%) 4.3% 2.9% 0.7% 0.7% 0.7% 1.4% 4 MLCF 22,952,500 27.6  1.58  6.08% 11.7%

5 DGKC 14,526,000 91.4  6.06  7.10% 7.4%

KSE-100 Volume ('000) 186,154 235,682 166,429 98,068 124,361 196,706
6 PAEL 11,330,500 23.9  0.97  4.23% 5.8%
Change in Volume (%) 46% 112% 14% -20% 27% 58%
7 WTL 11,208,000 0.9  0.07  8.05% 5.7%
KSE-100 Traded Value ('000) PKR 6,902,120 11,144,918 8,750,400 4,851,940 6,165,768 8,888,547
8 JSBL 8,784,000 5.2  -0.12  -2.24% 4.5%
Change in Traded Value (%) 79% 61% 45% -13% 27% 44%
9 FFL 7,533,500 10.3  0.82  8.68% 3.8%
KSE-100 Traded Value ('000) US $ 41,432 69,322 53,519 28,821 36,625 52,798
10 AGL 6,764,500 4.9  0.18  3.85% 3.4%
30 Days rolling Avg KSE-100 Volume ('000) 170,856 161,346 80,666 114,453 114,903 118,202 Sub-Total 179,357,000 91.18%

Total 196,705,840
Source: Pakistan Stock Exchange website
PACRA Morning Brief 4/7/23 6
Agriculture & Allied | Fertilizer
Sector Lead: Saniya.Tauseef@pacra.com Impact: Positive

Urea offtake jumps in June-2020

• The provisional offtake of urea registered an increase of approximately
76% YoY to 610,000 tonnes in June 2020, as compared to the same of last
year. 
• Provisional fertiliser offtake for June 2020 indicates that urea sales
witnessed a massive surge owing to seasonality factor along with
reopening of the economy during the month.
• Inventory levels dropped to 400,000 tonnes in June 2020 as compared to
1.1 million tonnes in May 2020.
• Meanwhile, the sale of DAP declined 28% YoY, while remaining strong on
a MoM basis (+88pc) to 115,000 tonnes in June.
• During the first half of 2020, DAP sales declined 17% YoY to 538,000
tonnes. On the other hand, its inventory position clocked in at 466,000
tonnes during the same period.

Source: https://profit.pakistantoday.com.pk/2020/07/01/urea-offtake-jumps-76pc-to-1-2m-tonnes-in-june/
PACRA Morning Brief 4/7/23 7
Energy | Oil Marketing Companies
Sector Lead: Faran.Taimur@pacra.com Impact: Neutral

Petroleum division statement

• The Petroleum Division (PD) on Wednesday said that fuel shortage, which
occurred during the last month across the country, had no link with the
decision taken to partially curtail the oil imports in March. 
• It reiterated that the decision to curtail oil imports was taken keeping in
view the Covid-19 situation, and that it was aimed at managing the
supply chain in the wake of drastic drop in demand, while preserving
production of oil and gas from local fields.
• It must also be known that during this curtailment period from March 25-
April 24, as many as six ships of motor gasoline and two ships of crude oil
were allowed based on the requirements and demand of various OMCs
and refineries. 
• The effect of this curtailment, if any, would have shown in the early to
mid-May given the sailing time of only 3-4 day from the Gulf region.

Source: https://profit.pakistantoday.com.pk/2020/07/01/fuel-shortage-must-not-be-linked-with-partial-curtailment-of-oil-imports/
PACRA Morning Brief 4/7/23 8
Energy | Power
Sector Lead: Anam.Waqas@pacra.com Impact: Positive

Shanghai Electric to acquire stake in K-Electric

• K-Electric (KE) has received a fresh Public Announcement of Intention
(PAI) from Shanghai Electric to acquire 66.4 per cent voting shares of KE.
• The intended acquisition entails a purchase of 66.4 per cent of shares
through agreement and a purchase of 16.8 per cent of shares through a
public offer.
• Shanghai Electric has stakes in approximately 20 companies, both listed
and unlisted in Turkey, Montenegro, Malta and other countries.
• Earlier on March 30, The Securities and Exchange Commission of Pakistan
had granted an extension of 90 days to Shanghai Electric to make a public
announcement of offer to acquire 66.4 percent shares of KE.

Source: https://profit.pakistantoday.com.pk/2020/06/30/shanghai-electric-mulls-acquiring-66-4pc-stake-in-k-electric/
PACRA Morning Brief 4/7/23 9
Energy
Impact: Neutral

Source: Investing.com Source: Investing.com

PACRA Morning Brief 4/7/23 10
Pharma & Chemical | Pharmaceutical
Sector Lead: Sohail.Ahmed@pacra.com Impact: Negative

Medicinal imports drop 12% to USD 886 mln

• The imports of medicinal products during the first 11 months of the fiscal
year 2019-20 witnessed a decrease of 12.17pc, as compared to the
corresponding period of last fiscal year.
• Pakistan imported medicinal products worth $886 million during July-
May FY20 as compared to the imports of $1,009 million during July-May
FY19, according to data issued by the Pakistan Bureau of Statistics (PBS).
• Meanwhile, on a year-on-year basis, medicinal imports declined by
30.77pc during May 2020, as compared to the same month of last year.
• In terms of quantity, Pakistan imported 19,257 metric tonnes of
medicinal products during the period under review as compared to the
imports of 21,153 metric tonnes during the corresponding period of last
year, showing a decrease of 8.96pc.

Source: https://profit.pakistantoday.com.pk/2020/06/30/11mfy20-medicinal-imports-drop-12pc-to-886m/
PACRA Morning Brief 4/7/23 11
Textile & Allied | Cotton Prices
Sector Lead: Muhammad.Hassan@pacra.com Impact: Neutral

Cotton Prices Trend

1st July To-
Mar-20 Apr-20 Jun-20 29-Jun 30-Jun 01-Jul
Date
Daily Cotton Price in US Cents/lbs - New York 51.33 56.40 59.19 59.19 59.19 61.41

Daily Cotton Price in US Cents/lbs - Local 64.79 66.53 57.93 57.93 57.93 57.93

Daily Cotton Price Average | PKR/ Maund 8,800 8,800 8,200 8,000 8,200 8,200 8,658

Volume Traded in Bales - - - - - - 1,408,082

Daily Cotton Price Average - Previous Year 8,650 #N/A - - - 8,000 8,625

Volume Traded in Bales Average - Previous Year 8,650 #N/A - - - 2,600 1,971,994

Bale : KG | Maund : KG | Bale : Maund ^Averages for the current month are to date
1 : 170 | 1 : 37.3 | 1 : 4.6 Total Volume Traded in Bales in KCA in FY20 (mlns) 1.4
Total Cotton Production in FY20 (millions) 8.6
Volume traded to production 16%

PACRA Morning Brief 4/7/23 12

Ads & Notices

Client Notice
MACPAC Films Limited Change of company secretary
Sapphire Fibers Limited Disclosure of interest by director
Hum Network Limited Notice of change of share registrar
Attock Refinery Limited Disclosure of interest by director
Ismail Industries Limited Reporting under section 18(2) – Further issue of shares
JS Bank Limited Change of Chief Financial Officer

Source: Pakistan Stock Exchange

PACRA Morning Brief 4/7/23 13
Interesting Info

PACRA Morning Brief 4/7/23 14

The Pakistan Credit Rating Agency Limited
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Disclaimer
This document has been prepared by financial analyst(s) at The Pakistan Credit Rating Agency Limited (PACRA). All views, thoughts and opinions expressed in this document belong solely to the author and
do not necessarily reflect the views or opinion of PACRA. The aim of this document is only to inform the user about current news and events as gathered from various secondary sources of information
such as research reports, newspapers and websites. This document does not aim to provide any recommendation (financial or otherwise) about any individual or entity.
© The Pakistan Credit Rating Agency Limited.