Money Market, Forex and General Updates - 21-07-09
Tuesday, July 21, 2009
MONEY MARKET
Money market remained tight on Tuesday as market opened at 13 percent, touched high of 13.90 percent and closed at the same point
FOREX
Inter bank opened at 82.10 & 82.15.Market topped at 82.20 but later on rupee gained some strength against US dollar and touched bottom of 82.05.Rupee gained ten basis points at bid and offer to close at 82.00 & 82.05.
GENERAL NEWS
Inflow of foreign portfolio investment continued for the consecutive fifth week and equity market witnessed net buying of USD 3.6 mn during the last week. During the current month the offshore investor remained net buyer of worth USD 8 mn at the equity market. The current trend in portfolio investment can be attributed to improving law and order situation, stability in local political scene and expectations on improvement in bilateral relations with India. Beside that signs of improvement in macro economic indicators of the country and expectations of good return can be the other reasons for offshore investor’s interest in the local equity market.
Pakistan’s fiscal policy continues to remain in a state of flux. Doubts have been raised on the tax revenue target of ~PRs1.5tr since the FY10 budget was unveiled. This combined with post budget amendments and extension of power subsidy point to a potential cut in budgeted PRs783bn development expenditure, if budget deficit is
to be capped at 4.9% of GDP for FY10E.
Money market remained tight on Tuesday as market opened at 13 percent, touched high of 13.90 percent and closed at the same point
FOREX
Inter bank opened at 82.10 & 82.15.Market topped at 82.20 but later on rupee gained some strength against US dollar and touched bottom of 82.05.Rupee gained ten basis points at bid and offer to close at 82.00 & 82.05.
GENERAL NEWS
Inflow of foreign portfolio investment continued for the consecutive fifth week and equity market witnessed net buying of USD 3.6 mn during the last week. During the current month the offshore investor remained net buyer of worth USD 8 mn at the equity market. The current trend in portfolio investment can be attributed to improving law and order situation, stability in local political scene and expectations on improvement in bilateral relations with India. Beside that signs of improvement in macro economic indicators of the country and expectations of good return can be the other reasons for offshore investor’s interest in the local equity market.
Pakistan’s fiscal policy continues to remain in a state of flux. Doubts have been raised on the tax revenue target of ~PRs1.5tr since the FY10 budget was unveiled. This combined with post budget amendments and extension of power subsidy point to a potential cut in budgeted PRs783bn development expenditure, if budget deficit is
to be capped at 4.9% of GDP for FY10E.
Labels: Economic Overview, Economy and Business, Pakistan Economy
posted @ 11:53 PM,
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