PSX Daily Market Review - 09 March 2017

The Bench Mark KSE100 Index Opened at 49468.16, posted a day high of 49778.21 and a day low of 49424.82 during last trading session. where as session suspended at 49754.72 with a net change of 302.01 points and net trading volume of 95.42 million shares. Daily trading volume of KSE100 listed companies dropped by 5.36 million shares or 5.32% on DoD basis.
Foreign Individuals remained in net selling position of 4.03 million shares and net value of Foreign Inflow dropped by 0.65 million US Dollars. Categorically Foreign Individuals and Overseas Pakistanis remained in net buying position of 7500 shares and 1.2 million shares respectively but Foreign Corporate Investors remained in net selling position of 5.24 million shares. While on the other side Local Individuals, Companies, and Banks remained in net selling position of 8.39, 1.33 and 3.08 million shares respectively but Mutual Funds remained in net buying position of 15.79 million share.

The dollar stood firm in Asia on Thursday and bond yields spiked after super-strong U.S. jobs data made a rate hike a near certainty, while oil nursed bruising losses as U.S. stockpiles swelled past all expectations. With energy stocks on the run, MSCI broadest index of Asia-Pacific shares outside Japan slipped 0.6 percent. Australian main index eased 0.1 percent, while its resources sector fell more than 2 percent. Japanese export-heavy Nikkei managed to take heart from a softer yen and added 0.3 percent. Economic data out of China continued to surprise with consumer inflation coming in well under expectations at an annual 0.8 percent, largely due to falling food prices. Yet producer prices still rose at the fastest pace since 2008, keeping alive hopes that China had stopped exporting disinflation to the rest of the world. That inflationary pulse was timely given oil prices dived 5 percent on Wednesday to the lowest this year as U.S. crude inventories ballooned to a record. The markets did pare a little of the losses on Thursday with U.S. crude up 41 cents at $50.69, while Brent crude bounced 49 cents to $53.60 a barrel.
A parliamentary committee on Wednesday warned Securities and Exchange Commission of Pakistan (SECP) to stop intervening in the matters of Pakistan Stock Exchange (PSX) by saying SECP is targeting stock market brokers. The Senate Standing Committee on Finance under the chair of Senator Saleem Mandviwalla has noted that SECP is involved in market manipulation. The committee in last month had taken suo moto action against the manipulative practices of SECP targeting stock market brokers. Mandviwalla said that SECP’s officials are pressurizing the brokers to sell their shares after the fraudulent activities by brokers in Lahore and Islamabad. “Why SECP is intervening in PSX matters, as we have received numerous complaints about the dubious role of the capital market regulator,” the committee chairman questioned. source the nation
Islamabad Chamber of Small Traders (ICST) on Wednesday asked the government to consider opening up local market for the auto sector of Turkey in the national interest as it will help boost dwindling textile exports while masses will get quality cars on economical rates. ICST Patron Shahid Rasheed Butt said that such a move will provide relief to the consumers who are being exploited by local producers of the cars since long. The Auto Policy announced in March last year has benefited the country as three multinationals including Nissan and Renault has decided to invest in the country, he added.
The government on Wednesday awarded Rs180 billion worth of two contracts to a Chinese firm for carrying out main civil works in the first stage of the Dasu hydropower project. The two contracts for the main dam, appurtenant structures and hydraulic steel structures (MW-01) worth Rs115 billion and construction of underground power complex, tunnels and hydraulic structures (MW-02) worth Rs64bn were formally awarded to China Gezhouba Group Company (CGGC). The agreements were signed between the Water and Power Development Authority (Wapda) and the CGGC.
Non-performing loans (NPLs) declined in the last quarter of 2016 while small and medium enterprises (SMEs) continued to have the highest infection ratio. In absolute terms, NPLs in the corporate segment were the highest at the end of 2016. Sector-wise, textile companies had the highest NPLs, according to a recent report by the State Bank of Pakistan (SBP). It revealed that the infection ratio in the corporate segment fell to 10.6pc at the end of December from 12pc at the end of the third quarter of 2016. NPLs in the corporate segment fell to Rs431 billion from Rs443.6bn a quarter ago.

GATM ,SMCPL , DSL and Over All Refinery Sector (ATRL) can lead the market in the positive direction.

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