Auxin Alerts: (27-AUG-2013) 1. The Prime Minister has ordered the government to fast track the development of the 6,600MW Gaddani Power Park. The project will include 10 power plants at least nine of which will be set up by IPPs on build-own-transfer mechanism and the total expected cost of the project is around US$14bn. 2. The SBP has decided to announce monetary policy on Sep’13’13 instead of the current month, as scheduled earlier. According to officials, the delay is to incorporate the inflation numbers which will be announced at the beginning of Sep’13. 3. The gas tariff for captive power pants has been increased by 17.4% to PkR573/mmbtu, while the tariff for domestic, industrial and commercial consumers has remained unchanged thus far. 4. World Bank officials have stated that the institution is willing to provide policy and performance based support to Pakistan. Programming of the US$1.5bn International Development Assistance (IDA) support over the next 10 months has also been discussed. 5. The smuggling of gold into India from Pakistan has reportedly increased by 100% in the last four months, eroding the value of Pakistan’s currency, after India announced its policy to increase import duty on gold and silver by up to 10%. 6. According to the National Clearing Co. of Pak net foreign inflow for Aug 26 was recorded at US$ 0.01mn. 7. The International Monetary Fund (IMF) has accepted Pakistan’s request for a delay in interest rate increase at least until the first review meeting of the Fund and in return it will triple the amount required to be mopped up from the open market to build foreign currency reserves. 8. Privatization Commission has formally prepared a list of 71 Public Sector Entities for divestment on fast track basis; list includes banks, insurance companies, energy sector companies, PIA, National Fertilizer Company & Pakistan Steel Mills. 9. Pakistan repaid $393mn as the 19th installment under IMF SBA. 10. Government would start work on both Dasu and Diamer Bhasha Dams simultaneously. 11. Technical profile remains weak below minor averages. With a nearby resistance around 23,224 seen capping any recovery attempt, the index can weaken further towards 22,301 — 22,260 levels. Ability to push back above 23,500 will be needed to alleviate the corrective / bearish outlook. Sell on strength! Regards, Auxin Investments.
Posted on: Tue, 27 Aug 2013 05:54:23 +0000