Monday 2 January 2017

SUNRISE CAPITAL (PVT) LTD | 02 January 2017 | TAKEOFF

PSX rallies 46pc to become Asia’s best market in 2016:
Pakistan’s benchmark equity index, KSE100, has rallied 45.6 percent to become the Asia’s best performing market in 2016.The multiyear growth trajectory received boost after the MSCI announcement to reclassify Pakistan to Emerging Markets, resulting in KSE100 index outperforming its peers in Frontier Markets and most of the countries in Emerging Markets. Here, improving domestic economy and enormous local liquidity supported the index levels at the time of weaknesses.Amongst Asian markets, Pakistan remained on top. Moreover it also remained number one in MSCI Frontier Markets. As shown in accompanied table, according to Bloomberg, Pakistan market posted 5th highest return in the world. trong performance of Pakistan equities in 2016 was mainly led by strong local cash liquidity thanks to falling interest rate and rising investor confidence.
Money Market: Bank investments rise
According to the weekly statement of position of all scheduled banks for the week ended Dec 16, 2016 deposits and other accounts of all scheduled banks stood at Rs10,594.93bn after a 0.56pc increase over the preceding week’s figure of Rs10,536.20bn.Compared with last year’s corresponding figure of Rs9,235.51bn, the current week’s figure was higher by 14.72pc.Deposits and other accounts of all commercial banks stood at Rs10,529.91bn against preceding week’s deposits of Rs10,472.13bn, showing a rise of 0.55pc. Deposits and other accounts of specialised banks stood at Rs65.02bn, higher by 1.47pc against previous week’s figure of Rs64.075bn.
Hydroelectric power production rises 5.7% in 2016:
The hydroelectric power stations, owned and operated by the Pakistan Water and Power Development Authority (Wapda), provided 33.658 billion units of low-cost and environment-friendly electricity to the national grid in the entire 2016, up 5.7% compared to 31.840 billion units generated in 2015. his additional contribution of hydel electricity not only helped minimise load-shedding in the country but also brought down power tariff,” a statement quoted Wapda as saying on Saturday.The main factors behind the increase in low-cost power generation included water releases from the reservoirs in line with the allocations made by the Indus River System Authority and effective operation and consistent maintenance of hydroelectric power stations.
Work on Suki Kinari project to be started soon:
Work on 870 mega watt (MW) Suki Kinari hydro projects in Mansehra will be started soon that will help to overcome energy crisis in the country on its completion.This was stated by Commissioner Hazara Division Muhammad Akbar khan while talking to media on Sunday. The project is a part of China Pakistan Economic Corridor (CPEC), which is located on Kunhar River in Kaghan valley. The project is expected to be completed in 2023.–NNI
Transmission line plan overcomes MoF hurdle:
Economic Co-ordination Committee (ECC) of the Cabinet has reportedly set aside the objections of Finance Ministry on the award of 660 KV HVDC( 4000 MW) Matiari-Lahore transmission line contract
amounting to $1.5 billion to a Chinese company without technical and financial evaluation which is a violation of Transmission Line Projects Policy 2015, Secretary Water and Power, Younus Dagha and a top official of State Grid Corporation of China (SGCC) signed the agreement in Beijing last week.Finance Division, in its comments on the summary of the Water and Power Ministry stated that it supports the project if it is based under G to G arrangement, however, prima facie there is no G to G arrangement for this project and only a corporate agreement has been signed between two public sector entities of the two countries.
SECP vows to be more rigorous in enforcement during 2017:
Securities and Exchange Commission of Pakistan (SECP) will be more rigorous during 2017 in enforcement and there will be a record number of inspections of regulated entities across all sectors and entities, from insurance companies to stock brokers.“A Sharia governance framework is being developed to meet the regulatory needs of Islamic finance across all sectors regulated by the SECP,” stated by the SECP Chairman Zafarul Haq Hijazi while outlining the SECP’s achievements of the outgoing year and announcing the future course of action.The year 2017 shall see the SECP build upon these achievements to further enhance investor confidence for the progress of the country’s economy, he said while addressing to the SECP officers. Enumerating the outstanding achievements of the outgoing year, he said that Pakistan’s three stock exchanges were successfully demutualised and integrated into the Pakistan Stock Exchange (PSX) to the benefit of investors, listed companies, and market intermediaries. The PSX has been making progress by leaps and bounds. Today it is considered Asia’s best performing stock exchange. Pakistan has re-entered the MSCI Emerging Market Index, a sign of international recognition of the developments in the capital market and wider economy.




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