Auxin Alerts: (20-Mar-2014) 1. According to the chairman Water & Power Development Authority, work on the US$ 4.2bn Dasu Dam will begin this year. Germany will provide US$ 1bn while China will provide US$ 2bn for the project. 2. According to the National Clearing Co. of Pak net foreign outflow on Mar19 was recorded at US$ 2.93mn. Banks & DFIs net sell was US$ 2.27mn while mutual fund net inflow clocked in at US$ 2.91mn. 3. Expect market to remain choppy with continued buying interest from local institutions. Expect cement to perform as sources expect the construction of Dasu Dam to begin this year. Margin play remain intact for OMCs. 4. According to the Japanese Ambassador to Pakistan, Japan is waiting for a positive second IMF review of the IMF EFF program for to take a final decision on providing US$2.5bn in funding for the Karachi Circular Railway (KCR) project. 5. Money supply in the economy has increased by 5.68%YoY FYTD as opposed to the growth of 8.52%YoY in the comparable period of FY13. According to the latest data released by the SBP, the expansion in broad money (M2) between July 1 and March 7 remained Rs502.9 billion, which is significantly lower than the monetary impact of Rs650.9 billion recorded over the corresponding period of the last fiscal year. 6. Turk Cell and Saudi Telecom are expected to take part in the 3G/4G auction to be held on April 23. 7. SBP conducted auction of MTBs where the GOP managed to raise PkR232bn vs a target of PkR500bn. In this regard, cut off yields for MTBs remained relatively stable with, PkR171.359bn raised in the 12-month maturity, possibly indicating an expectation of a DR cut in the next MPS. 8. Pak State Oil (PSO) to acquire 4.5% of Pak Refinery Ltd. (PRL) held by Chevron Global Energy Inc. 9. Turkish Nurol Group has shown interest in investing in 2 coal based projects (660MW) at Gaddani. 10. FBR likely to reverse measures which includes capacity tax on the beverage industry. FBR suffered a loss of PKR 478mn due to this introduction. 11. China Gezhouba Group Company (CGGC) and the Private Power and Infrastructure Board (PPIB) sign a memorandum of understanding (MoU) for developing three power projects of 660MW each (total 1,980MW) based on imported coal in the planned Gadani Power Park. 12. According to the State bank C/A deficit during 8moFY14 soars over US$ 2bn vs. a deficit of US$ 831mn during the same period last year. C/A however was US$ 164mn surplus during Feb14. 13. Expect market to remain choppy with sector specific interest. OMCs & power distribution cos. (SNGP & SSGC) expected to post gains. Regards, Auxin Investments
Posted on: Thu, 20 Mar 2014 06:03:24 +0000
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