PSX Daily Market Review - 14th July 2017

Foreign Investors remain in net selling of 0.49 million shares and but net value of Foreign Inflow increased by 1.68 million shares. Categorically Foreign Individuals and overseas Pakistanis remain in net buying of 0.016 and 0.84 million shares but Foreign Corporate investors remain in net selling of 1.35 million shares. While on the other side Local Individuals, Banks and Mutual Funds remain net buying of 3.88, 10.88 and 2.08 million shares respectively but Local Companies, NBFCs and Brokers remain in net selling of 1.41, 1.1 and 13.95 million shares respectively.

Global stocks scaled record highs on Friday, with Asian equities rising for the fifth straight session, as signs the Federal Reserve will pursue a gradual rate tightening path and hopes of a strong earnings season lifted appetite for risk assets. The MSCI World Index .MIWD00000PUS was marginally higher early on Friday, just a whisker below an all-time intraday high hit earlier. It is on track to end the week 1.6 percent higher. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS advanced 0.3 percent to its highest level in two years. It is set for a 3.3 percent gain for the week. Japanese Nikkei .N225 added 0.15 percent, poised for a weekly rise of 1 percent. Chinese shares bucked the positive trend, with the CSI 300 .CSI300 index falling marginally, and the Shanghai Composite .SSEC down 0.15 percent. Hang Seng .HSI climbed 0.2 percent.
The International Monetary Fund (IMF) has noted that macroeconomic risks for Pakistan have begun to re-emerge since the end of the IMF programme last year. “The pace of fiscal consolidation has slowed, public debt remains high, and mobilisation of tax revenue needs to be further strengthened. External vulnerabilities have increased with a widening current account deficit and rising medium-term external repayment obligations linked to the China Pakistan Economic Corridor (CPEC) and other large investment projects. Foreign exchange reserves have declined since the end of the EFF-supported programme and remain below comfortable levels,” the IMF stated in its recent report on Pakistan.
Board of Investment (BoI) Chairman Dr Miftah Ismail on Thursday said that the government is planning to establish 46 Special Economic Zones (SEZs) alongside the China Pakistan Economic Corridor (CPEC) route in the long run. “Nine zones have already been declared prioritised during the 6th JCC meeting held in December, 2016”, he said at the concluding session of Pakistan China Industrial Cooperation dialogue. He further said that Chinese companies are working on a number of projects relating to energy, railways and road infrastructure.
The total liquid foreign reserves held by the country stood at $21,447.6 million on July 7. The weekly break-up of the foreign reserves position released on Thursday showed the foreign reserves held by the State Bank of Pakistan stood at $16,197.3 million and net foreign reserves held by commercial banks are $5,250.3 million. During the week ending July 7, SBP’s reserves increased by $54 million to $16,197 million.
The government has to make focused policies and should remove unreasonable taxes to make print industry more prosperous, valuable, and economically viable. This was demanded by the speakers at the soft launch ceremony of PrintPak-2017 Exhibition slated to be held at Karachi Expo Center from November 18-20. Former chairman of Pakistan Association of Printing and Graphics Arts Industry (PAPGAI) Minhajud Din talked about taxation issues being faced by the industry. “We need to have 50 percent increas in per capita consumption of paper in order to be at par with India,” he added. He said that there is a need of friendly paper policy.

Today ATRL, MCB, NBP may lead the market in the positive direction.

The Benchmark KSE100 index formatted a double bottom at its 61.8% expansion level and created two consecutive hammers during the last two trading sessions, but its capped by a resistant trend line of its bearish trend channel which may push the Index towards 42500 and then 40500 if the index closes below 43000. As of now, the index has strengthen its supportive region at a supportive trend line which is creating a crossover with horizontal support. For the current trading session, the Index may face resistance ahead at 44200 and 44550 from its daily double top and a horizontal resistance. Therefore a cautious trading approach is recommended for current trading session.

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