PSX Daily Market Review 06 Feb. 2017

The Benchmark KSE100 Index Opened at 49665.97, posted day high of 49780.53 and day low of 49430.90 during last trading session. The session suspended at 49555.83 with net change of -110.14 points and net trading volume of 147.44 million shares. Daily trading volume of KSE100 listed companies dropped by 30.55 million shares or 17.16% on DOD bases.
Foreign Investors have come back to buying after a long time and they remained in net buying position of 4.22 million shares and net value of Foreign Inflow increased by 1.27 million shares during last trading session. Categorically Foreign Individual, Corporate and Overseas Pakistani investors remained in net buying position of 0.06, 1.61 and 2.55 million shares respectively. While on the other hand, Local Individuals and Companies remained in net selling position of 8.92 and 18.82 million shares respectively but Local Banks, NBFCs, Mutual Funds and Brokers remained in net buying position of 0.21, 9.08, 3.4 and 9.18 million shares respectively.

Asian shares crept ahead on Monday as Wall Street gathered momentum into a busy week of earnings with more than 100 major companies due to report, while the dollar was again hobbled by a lack of progress on U.S. fiscal stimulus. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.3 percent, with Australia ahead by 0.1 percent. Japanese Nikkei .N225 rose 0.2 percent in the wake of a firmer finish on Wall Street. Japanese Prime Minister Shinzo Abe meets U.S. President Donald Trump on Feb. 10 and 11, with trade and currencies likely to be on the agenda. A private survey out of China showed activity in the services sector remained strong in January as companies reported a solid increase in orders. Local markets seemed unimpressed and Shanghai stocks were barely changed .SSEC. Dealers are still absorbing Friday surprise move by Chinese central bank to raise short-term interest rates.
Net public debt has crossed the Rs18.28 trillion mark, rising about 35pc during the tenure of the ruling Pakistan Muslim League-Nawaz (PML-N). This was reported by the ministry of finance, in response to a question from Pakistan Peoples Party (PPP) MNA Shahida Reh­mani in the National Assembly last week. The volume of net public debt as on Sept 30, 2016 was Rs18,277.6 billion, the ministry response said. Total public debt stood at Rs13.48tr at the end of fiscal year 2012-13 — almost three years ago. The major contribution to the increase in net public debt came from an almost 40pc rise in domestic debt, which rose from Rs8.686tr at the end of 2013 to Rs12.14tr at the end of the first quarter of the current fiscal year (FY 2016-17).
Net consumer financing that remained negative not long ago is now soaring to new heights. It is just about higher demand, says the president of one of the top five banks, explaining a phenomenal net increase of Rs46.5bn in consumer financing in the first half of this fiscal year (July-Dec 2016). This amount is far higher than that of consumer financing — Rs33bn — in FY16. And, it is quite a record as percentage of total lending to private sector businesses as well (see table). Banks are more open and confident now in accommodating consumer loan demands, says the head of another, mid-tier, bank.
Most assemblers of heavy commercial vehicles (HCV) are using old technology engines while claiming Euro II compliance, an assertion hard to believe keeping relevant international standards in view. Market sources said assemblers have introduced turbocharger and intercooler models, which were not Euro-II compliant. Only one Japanese heavy vehicles assembler said it has introduced common rail smart engine (CRSE) in Pakistan. The international truck market is far ahead of Pakistan in engine technology. It is expected that by June 2017, the share of Euro II diesel (low-sulphur diesel) will reach 85 per cent in Pakistan. In 2012, Hinopak, Ghandhara Nissan Ltd (GNL), Master Motors and Ghandhara Industries Ltd (GIL) took stay order from the Sindh High Court due to non-availability of Euro II diesel. After several extensions, the current deadline has been set at June 30.
Hyundai Motor Company plans to set up a car assembly plant in Pakistan in a joint venture with Pakistani textile giant Nishat Mills, a Nishat Mills official said on Friday. Hyundai, South Korean largest automaker, has been seeking a local partner to set up an assembly line in Pakistan, Nishat Mills company secretary Khalid Chauhan told Reuters. Today we have signed a memorandum of understanding between the two companies and we will set up a ... project for the assembly and sales of both passenger and commercial vehicles, Chauhan said. The project will be subject to statutory and regulatory approval.
HCAR, PSO, DGKC, ATRL and NML can lead market in positive direction.

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