PSX Daily Market Review - 10th March 2020

Trading volume at PSX floor increased by 63.51 million shares or 29.98% on DoD basis, whereas the benchmark KSE100 index opened at 37,091.15, posted a day high of 37,091.15 and a day low of 35,917.34 points during last trading session while session suspended at 37,058.95 points with net change of -1160.72 points and net trading volume of 251.66 million shares. Daily trading volume of KSE100 listed companies also increased by 53.09 million shares or 26.74% on DoD basis.
Foreign Investors remained in net long positions of 4.23 million shares but value of Foreign Inflow dropped by 1.16 million US Dollars. Categorically, Overseas Pakistani remained in net long positions of 5.45 million shares but Foreign Individuals and Corporate remained in net selling positions of 0.39 and 0.83 million shares respectively. While on the other side Local Individuals, Banks, Mutual Fund and Brokers remained in net selling positions of 9.81, 2.92, 4.22 and 1.67 million shares but Local Companies, NBFCs and Insurance Companies remained in net long positions of 7.96, 0.14 and 8.57 million shares respectively.

Asia shares try to stabilise, pin hopes on policy stimulus
Asian shares bounced and bond yields rose from historic lows on Tuesday as speculation of coordinated stimulus from global central banks and governments calmed panic selling. Yields on benchmark U.S. 10-year Treasury debt doubled to 0.68% and oil prices rallied more than 6%, offering hope that markets had found a floor, even just fleetingly. “Talk of coordinated fiscal and monetary support is getting louder,” said Rodrigo Catril, a senior FX strategist at National Australia Bank, noting U.S. President Donald Trump was promising “major” steps to support the economy. Trump plans a news conference later on Tuesday to lay out proposed measures and dealers reported rumours Treasury Secretary Steve Mnuchin was pushing for radical action.
Virus-induced supply chain disruptions to hit industrial activity in Pakistan
A high-powered government committee has evolved a comprehensive report highlighting the threat of delay in supply chain of raw and intermediate goods besides a sizable decline in bilateral trade in the wake of epidemic coronavirus that hit China in December 2019. Since the outbreak, this is the first indigenous report prepared to analyse the possible impact of outbreak of coronavirus on Pakistan’s global trade with special emphasis on bilateral transactions with China. Various governments departments and agencies were asked for consultations with relevant stakeholders.
Virus could cost world $2tr, fears UN
A key UN trade organisation is warning of looming recession in the world economy as countries respond to the novel coronavirus outbreak. Richard Kozul-Wright of the UN Conference on Trade and Development (UNCTAD) predicts a global hit to the world economy of between $1 trillion and $2tr this year, and cautions it could be worse. Even before oil markets plunged on Monday, Kozul-Wright said countries whose economies are largely dependent on production of commodities will face pressures as an economic slowdown reduces demand for their products. Kozul-Wright said the European Union, which faced poor economic prospects at the end of 2019, was almost certain to tumble into recession this year, pointing especially to pressures in Germany and Italy.
Dollar climbs Rs3.65 in interbank after six months of calm
The rupee witnessed pressure on Monday after a period of relative calm for the past six months, as it fell by Rs3.65 against the dollar to Rs157.9 in the interbank market. This represented a jump of 2.36 per cent as compared to dollar trading at Rs154.25 on Friday, according to rates provided by the Exchange Companies of Pakistan. By mid afternoon, the dollar had hit Rs156.58, representing gains of Rs2.33 or 1.51pc. Meanwhile, in the open market, the greenback rose by Rs2.70 to Rs157 from Rs154.3. In percentage terms, this meant an increase of 1.75pc.
First annual decline in oil use in decade: IEA
The world is set for its first annual decline in oil consumption in more than a decade due to the impact of the coronavirus outbreak, the IEA said on Monday. In its latest report — which did not take into account an oil price war after Saudi Arabia and Russia failed to agree to continue production cuts — the International Energy Agency chopped its current demand forecast by 1.1 million barrels per day (mbd) in its base case scenario as the coronavirus continues to spread around the world. That would make for a small annual drop of 90,000 barrels per day, the first since 2009. That forecast however is based on the assumption that China brings the outbreak there under control by the end of the month and that containment measures elsewhere have less of an impact on demand.