PSX Daily Market Review - 05 April 2017

The Bench Mark KSE100 Index Opened at 48233.20 with a positive gap, posted a day high of 48366.04 and a day low of 4805.54 whereas session suspended at 48088.37 during last trading session with net change of -139.38 points and net trading volume of 56.7 million shares. Daily trading volume of KSE100 listed companies dropped by 8.26 million shares or 12.71% on DoD basis.
Foreign Investors remained in net buying position of 0.86 million shares but net value of Foreign inflow dropped by 2.4 million US Dollars. Categorically Foreign Corporate and Overseas Pakistani Investors remained in net buying position of 0.57 and 0.28 million shares. While on the other side Local Individuals, NBFCs and Brokers remained in net buying position of 2.07, 1.96 and 3.34 million shares but Local Companies, Banks and mutual funds remained in net selling position of 0.12, 4.93 and 2.75 million shares respectively.

Asian stocks rose on Wednesday, helped by a bounce in Chinese shares, though the underlying sentiment was still cautious with investors wary of taking big positions before Presidents Donald Trump and Xi Jinping start their summit on Thursday. Construction counters were among the top gainers in the mainland and Hong Kong after Beijing on Saturday announced plans to build Xiongan New Area, modeled on the Shenzhen special economic zone next to Hong Kong that helped kickstart Chinese economic reforms in 1980. "This is a very headline-driven market and the only source of optimism is the new economic zone news over the weekend - but that is unlikely to be sustainable," said Conita Hung, an independent market strategist in Hong Kong. Shares in more than 30 listed companies seen likely to benefit from the new zone jumped by the 10 percent daily trade limit. Mainland markets reopened on Wednesday for trading after a long weekend. Hong Kong markets were closed on Tuesday. MSCI broadest index of Asia-Pacific shares outside Japan rose 0.4 percent with Shanghai and Hong Kong leading the region by rising of 0.8 percent and 0.4 percent.
Provincial Finance Minister Dr Ayesha Ghaus Pasha has said that the Punjab Revenue Authority (PRA) is the first agency which is collecting tax at provincial level. She expressed these views while addressing the MoU signing ceremony among Punjab Revenue Authority, Australian Foreign Affairs & Trade Department and Mckinsey & Company. The MoU was signed by the PRA chairman, Mckinsey & Company Managing Director Salman Ahmad and Finance Secretary Hamid Yaqoob Sheikgh. Australian High Commissioner Jurek Juszczyk was also present on the occasion. The minister said that the PRA is collecting hundred million rupees against expenses of Rs1 million. She expressed the hope that due to technical assistance of Australian experts, the working capacity of the PRA and Finance Department will enhance and the target to be set for 2018 will be achieved easily.
The government has deferred imposition of sales tax on services on oil tankers till June 30. “Our negotiations with the federal and provincial governments were successful therefore we are announcing an end to the strike,” said President (South) Oil Tanker Contractors Association (OTCA) Babar Ismail while talking to the media after negotiations with the government. A meeting, which was presided over by the petroleum and natural resources secretary, was attended by representatives of three provinces -- Punjab, Sindh and Khyber Pakhtunkhwa. The Balochistan government had participated in the meeting via phone, Babar Ismail said.
The State Bank of Pakistan (SBP) has renewed the status of JCR-VIS and PACRA as Eligible External Credit Assessment Institutions (ECAIs), a statement of the central bank said here on Tuesday. It pointed out that the SBP has renewed the status of both credit rating agencies operating in Pakistan namely JCR-VIS Credit Rating Company Limited (JCR-VIS) and The Pakistan Credit Rating Agency Limited (PACRA) as eligible/recognised External Credit Assessment Institutions (ECAIs) for the calendar year 2017.
The Pakistan Banks Association (PBA) has submitted its recommendations for the Federal Budget 2017-2018 on the banking sector to the Federal Board of Revenue (FBR). Pakistan’s banking sector, the largest contributor to the exchequer, paid more than Rs140 billion tax and collected and paid more than Rs134 billion withholding tax to the FBR in the year ended Dec 31, 2016. Therefore, the total contribution to the exchequer from members of the PBA was over Rs 274 billion. This has enabled the banking industry to continue playing an integral role in the economic development of the country and supporting major initiatives of the government, the FBR and the SBP.

NML, BYCO, and Overall Steel Sector (DSL and CSAP) can lead the market in the positive direction.

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