PSX Daily Market Review - 07 March 2017

The Bench Mark KSE100 Index Opened at 49696.83 with a positive gap of 119 points, posted a day high of 49841.10 and a day low of 49350.12  during last trading session while session suspended at 49434.89 with a net change of -188.92 points and net trading volume of 77.15 million shares. Daily trading volume of KSE100 listed companies dropped by 41.56 million shares or 35.01% on DoD basis.
Foreign Investors remained in net selling position of 3.68 million shares but net value of Foreign Inflow increased by 5.11 million US Dollars. Categorically Foreign Individuals, Corporate and Overseas Pakistani Investors remained in net selling position of 0.007 shares, 3.05 and 0.64 million shares respectively. While on the other side Local Individuals and NBFCs remained in net buying position of 24.65 and 0.49 million shares but Local Companies, Banks, Mutual Funds and Brokers remained in net selling position of 4.22, 2.2, 0.35 and 16.15 million shares respectively.

Asian stocks were listless early on Tuesday after Wall Street slipped on concerns about U.S. President Donald Trump ability to focus on economic policies, while the euro slid on fears an anti-European Union candidate may be elected France next president. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was flat, retaining most of its 0.36 percent gain from Monday. Japanese Nikkei .N225 fell more than 0.1 percent, driven lower by demand for the safe haven yen. Australian shares were up 0.2 percent, ahead of the central bank policy meeting later in the session when it is expected to keep interest rates on hold. On Monday, U.S. stocks posted losses of as much as 0.37 percent after Trump signed a revised executive order, effective March 16, banning citizens from six Muslim-majority countries from travelling to the United States for 90 days.
In spite of the fact that cement consumption was rebounded in the domestic market in February 2017, the industry registered a negative growth for the first time during current fiscal year due to the massive decline of 45 percent in exports. Total cement consumption in February 2017 was 3.435 million tons that is 0.41 percent less than the consumption of 3.449 million tons during the corresponding month of last year. The domestic cement consumption in February was 3.181 million tons out of which 2.580 million tons was dispatched by the North based cement mills and 0.601 million tons was dispatched by cement mills located in the Southern part of the country. The increase in domestic consumption was 6.69 percent. Exports in February stood at 0.254 million tons that is 45.69 percent less than exports achieved in February 2016. In the first eight months of this fiscal year, the country dispatched 26.339 million ton cement showing an overall growth of 6.36 percent over the corresponding period of last fiscal year. During this period the domestic consumption increased by 9.12 percent but exports declined by 8.54 percent.
Dr Miftah Ismail, special assistant to the prime minister on investment and chairman of the Board of Investment, said on Monday that the government would sympathetically consider PAAPAM proposal for removal of regulatory duty on auto grade steel in the coming budget. He was speaking as chief guest at the closing ceremony of the Pakistan Auto Show (PAPS 2017), which concluded as Pakistan’s premier auto event. Also, no FTA will be signed at the cost of the local industry, economy or employment of people associated with it, he said.
Senate Standing Committee on Finance and Revenue Chairman Senator Saleem Mandviwalla on Monday said the government failed to improve power generation in the last four years. The PML-N government has failed to enhance power production since it assumed the charge in June 2013, said Mandviwalla, who was finance minister during PPP tenure. He said the government had shutdown the gas-powered power plants. He said that a German state-owned development bank had questioned Pakistan power ministry claim of turning around the power sector through efficient generation and effective control.
Pakistan Automotive Manufacturers Association (PAMA) has urged the Ministry of Finance to abolish the requirement of 100 percent cash margin on opening of LCs for import of CKDs of automotive vehicles. In a letter to the ministry on March 3, PAMA Director General Abdul Waheed Khan stated that State Bank notification ERD/M&PRD/PR/01/2017-16 (dated February 24, 2017) imposed 100 percent cash margin requirement on the import of certain consumer items including motor vehicles (both in CBU and CKD condition).

SSGC ,MTL , PNSC and DSL can lead the market in the positive direction.

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