Int’l oil prices come down at $40/barrel
Karachi—KSE-100 Index continued to experience correction as the index lost another 188 points to close in red at 42,622 levels amid thin market volume of 394 here on Wednesday. The Bank of Punjab however managed to emerge on top as volume leader of the day with a trade of 37 million shares to their credit while Pace Pakistan and Aisha Steel were second and third volume leaders with respective trade of 24 million 22 million shares to their credit accordingly.
According to market analysts the current account deficit is expected to increase to US$3.4billion in financial year 2017 from US$1.7billion in Financial year 2016, however the impact should be offset by expected strong loan inflows in the coming quarters as well (US$1.95bn in 4MFY17 as against US$1.14bn in 4MFY16). While a modest growth of 3% only for remittances in FY 2017, any further dent on remittances outlook could alter current account balance.
On the international oil front, the prices plunged 4% on Tuesday on doubts over OPEC output cut deal as disputes among Saudi Arabia, Iran and Iraq emerge regarding details of the planned output cut. However, traders expect prices to remain volatile and would quickly rise above US$50/bbl if OPEC comes to an agreement. On contrary, the prices could fall as low as US$40/bbl.