International

Russia’s economy shrank 4.3% in the third quarter this year, as a recession caused by low oil prices and Western sanctions over Ukraine continued to take its toll. Overall, the economy shrank 3.8% for the first nine months of the year. In a sign of how tough the situation has become, official statistics released on Monday showed that consumer spending in the country is falling at its steepest rate in 15 years. (Dawn)

Market

In a notice to the stock exchange, Hascol has said that it was in preliminary discussions with Vitol Asia Pte Limited to explore “a possible transaction which could involve an investment by Vitol in the shares of Hascol and also a supply rights arrangement” where its board of directors has been asked to allow Vitol to carry out a due diligence to evaluate the opportunity.(E.T)

Economy

Pakistan’s current account deficit in 1QFY16 remained US$109mn, according to data released by the State Bank of Pakistan (SBP). The current account deficit shrank 6.75%YoY to $1.52bn. Trade deficit decreased to $4.6bn over the quarter (Down 31.3%). Pakistan’s total imports of goods was valued at $9.9bn as opposed to $12bn (down 17.5%). Pakistan exported goods worth over $5.4bn (down 9%YoY). Note that remittances also went up by 4%YoY aiding the relief to the external account. (ET)

M2 witnessed an increase of 0.21% in FY16YTD to stand at PkR11.31tn as of Oct 09’15. In this regard, NFA posted an increase of PkR117bn to PkR936bn whereas NDA stood at the level of PkR10.37tn (drop of PkR94bn). On the cash basis, the government’s borrowing for budgetary support stood at PkR148bn vs. PkR188bn in the same period last year. It has retired PkR303bn to SBP (against borrowing of PkR125bn last year) and has borrowed PkR452bn from commercial banks (versus borrowing of PkR62bn). Credit to non-government sector (including PSEs) decreased by PkR53bn to PkR4.34tn, while private sector credit decreased by PkR64bn to stand at PkR3.87tn. (Shajar Research)

Oil & Gas

According to sources in Oil Gas Regulatory Authority (Ogra), as per global trends of crude oil prices the local prices of major petroleum products are expected to increase next month in case the government did not reduce GST rate. Sources said that the price of petrol is likely to go up by PkR3.43 per litre and High Speed Diesel (HSD) by PkR2.80 per litre, kerosene oil by PkR3.00 per litre, Light Diesel Oil (LDO) by PkR1.75 per litre and High Octane Blending Component (HOBC) by PkR4 per litre. (BR)