PSX Daily Market Review - 14th June 2017

Trading volume at PSX floor increased by 97.81 million shares or 44.59%, DoD basis. Whereas, the KSE100 Index opened at 47693.31, posted a day high of 48513.23 and a day low of 47099.99 during the last trading session. The session suspended at 48071.04 with a net change of 399.24 points and a net trading volume of 103.24 million shares. Daily trading volume at PSX floor increased by 40.6 million shares or 64.82%, DoD basis.
Foreign investors remained in a net selling position of 6.41 million shares but the net value of Foreign Inflow dropped by 2.78 million US Dollars. Categorically, Foreign Individual and Overseas Pakistani investors remained in net buying position of 0.019 and 1.03 million shares but Foreign Corporate investors remained in a net selling position of 7.46 million shares. While on the other side, Local Individuals and NBFCs remained in net buying positions of 20.38 and 4.91 million shares, but Local Companies, Banks Mutual Funds and Brokers remain in net selling positions of 1.88, 8.28, 4.22 and 1.77 million shares, respectively.

After a disastrous session, the Pakistan Stock Exchange on Tuesday took a recovery course as the benchmark KSE-100 Index gained 399 points. The index climbed 0.84 per cent to touch 48,071 points by the end of the session. The benchmark touched the day high at 48,513 points with first 30 minutes of trading, however it failed to sustain the bullish rally, and mid-day pressure forced the Index to touch 47,100 points as day low. Trading activity was led by the cement sector, with 53 million shares changing hands during the session, followed by engineering and banking sectors with 44.5 and 42.4m shares respectively. Market remained volatile throughout the day making an intraday low of -572 points and high of +841 points.
Pakistan trade deficit widens to record $30bn. The countrys trade deficit ballooned by 42 per cent year-on-year to an all-time high of $30 billion in the first 11 months of the current fiscal year on the back of falling exports and a sharp increase in the import bill. The country’s annual trade deficit was $20.435bn when the PML-N came to power in 2013. It has been on the rise since then due to rising imports and falling exports. Trade deficit stood at $3.465bn in May,, a rise of nearly 61pc compared to the same month a year ago, according to the data released by the Pakistan Bureau of Statistics on Monday. Two reasons explain the trade deficit: rising import bill of capital goods, petroleum products, and food products; and a steep fall in exports despite prime minister’s support package to boost exports. The trade deficit is said to be posing a serious threat to external balance of payment.
Crisis in Gulf won’t affect LNG imports from Qatar. Pakistan said on Monday the diplomatic crisis in the Middle East would not affect its Liquefied Natural Gas (LNG) imports from Qatar. Speaking at a news conference, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said Pakistan was currently importing 600 million cubic feet per day (mmcfd) of LNG from Qatar. “This is a commercial contract. It is binding and will not be affected” by the ongoing tension between Riyadh and Doha. He said only a force majeure event that is beyond the control of the two parties and international sanctions, particularly on gas sales, could affect LNG imports from Qatar. There are no such apprehensions on both counts, he said. He said Pakistan was importing 2.7m tonnes of LNG whereas neighboring India was importing 9m tonnes and South Korea, Japan and China were importing 60m tonnes of LNG from Qatar. He said the imported 600mmcfd of LNG, which was being supplied to the industry, captive power plants, Independent Power Producers (IPPs) and CNG sector. He said Pakistan used to import 1m tonnes of fertiliser before the import of LNG. The country will export 0.6m tonnes of fertiliser this year due to the supply of LNG to the fertiliser industry.

The Market is expected to remain volatile today. We advise Traders to exercise caution. Buying on dips and booking gains on strength is recommended