PSX Daily Market Review 03 Jan. 2017

The Bench Mark KSE100 Index opened with a gap at 47902.18, posted day high of 48357.57 and day low of 47878.33 during last trading session. The session suspended at 48240.28 with net change of 433.31 points and net trading volume of 181.43 million shares. Daily trading volume of KSE100 listed companies increased by 26.9 million share or 17.41% on DOD bases.
Foreign Investors remained in net selling position of 4.67 million shares and net value of Foreign Inflow dropped by 1.99 million US Dollars on first trading session of 2017. Categorically Foreign Individual, Corporate and Overseas Pakistani Investors remained in net selling position of 0.15, 0.18 and 4.34 million shares respectively. While on the other side Local Individuals, Companies and NBFCs remained in net buying position of 14.79, 6.08 and 0.45 million shares respectively but Local Banks, Mutual Funds and Brokers remained in net selling position of 1.43, 6.49 and 5.35 million shares respectively.

The U.S. dollar held firm on Tuesday as the prospect of rising U.S. interest rates this year kept sentiment bullish, while a surprisingly upbeat reading on Chinese manufacturing gave the Aussie dollar a lift. A holiday in Japan made for quiet early trade, leaving the dollar steady around 117.40 yen JPY= but well up on Friday trough of 116.05. Against a basket of currencies, the dollar was up 0.5 percent at 102.720 .DXY. The euro was sulking at $1.0475 EUR despite strong manufacturing data for the single currency bloc, having surrendered all of Friday brief spike to $1.0700.
While the country faces gas and electricity load shedding, the Economic Co-ordination Committee (ECC) of the Cabinet was informed that 44 MMCFD allocated to M/s Star Power Generation Ltd for a period of 25 years can not be utilised owing to a litigation.
The Punjab government has decided to provide solar energy solutions to 1023 Basic Health Units (BHUs) throughout the province and a summary for approval has been forward to the Planning and Development (P&D) department, said sources. According to the sources, the Punjab government has already allocated Rs1.35 billion budget for this purpose.
The federal and provincial governments continued to exert tight control over recurring expenditures and slowly utilised development funds to contain the country’s consolidated fiscal deficit at 4.6 per cent of gross domestic product (GDP) last year. This was reported to parliament jointly by the five governments – federal and four provinces – under article 9(3) of the National Finance Commission (NFC) award of 2009. The federal and provincial governments said they generally followed the policy of austerity to limit fiscal deficit to 4.6pc of GDP, although the budgeted target of 4.5pc was missed by a small margin. Based on a similar policy, the Centre and the provinces would limit fiscal deficit to 3.8pc of GDP this fiscal year.
Chinese central bank set a slightly stronger than expected daily fixing for the yuan on Tuesday after changes to its currency basket that are expected to make the yuan index less influenced by moves in the dollar. China has been promoting use of the index, which references a basket of currencies of its trading partners, partly to divert attention from the yuan slide against the dollar, which comes as U.S. President-elect Donald Trump has threatened to label Beijing a currency manipulator. The yuan CNY=CFXS fell almost 7 percent against the surging dollar in 2016 to near 8-1/2 year lows, and roughly 5 percent against the basket.
BYCO, ASTL, PAEL, GAIL and DSL can lead market in positive direction.

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