PSX Daily Market Review 15 Feb. 2017

The Benchmark KSE100 Index Opened at 49931.94, posted day high of 50036.65 and day low of 49527.70 during last trading session. The session suspended at 49767.91 with net change of -197.72 points and net trading volume of 136.39 million shares. Daily trading volume of KSE100 listed companies dropped by 6.62 million shares or 4.63% on DOD bases.
Foreign Investors remained in net buying position of 4.73 million shares and net value of Foreign Inflow increased by 3.24 million US Dollars. Categorically Foreign Individuals remained in net selling position of 33297 shares but Foreign Corporate and Overseas Pakistani investors remained in net buying position of 0.77 and 3.99 million shares. While on the other side Local Individuals, NBFCs, Mutual Funds and Brokers remained in net selling position of 7.22, 0.69, 8.63 and 4.41 million shares respectively but Local Companies and Banks remained in net buying position of 3 and 8.64 million shares respectively.

Asian stocks rose early on Wednesday as Wall Street set record highs overnight after Federal Reserve Chair Janet Yellen spoke in support of an interest rate hike next month, while the dollar hovered near three-week highs. Yellen said on Tuesday that the Fed will probably need to raise interest rates at an upcoming meeting in March, and that delaying rate increases could leave the Fed policymaking committee behind the curve. Yellen comments boosted U.S. bank stocks, helping push Wall Street indexes to record highs overnight. The rise in U.S. stocks nudged MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS to a 19-month high. The index was up 0.3 percent early on Wednesday. Fundamentally, the U.S. banks are simply being used as a vehicle to express reflation and Trumponomics, wrote Chris Weston, chief market strategist at IG in Melbourne. Although last night really belonged to Janet Yellen whose prepared comments that waiting too long to tighten would be unwise and a further review its policy stance will take place at its upcoming meetings. Japanese Nikkei .N225 added 1 percent and Australian stocks rose 0.9 percent.
The recent reforms and strengthening of regulatory framework by the SECP have pushed up the modaraba sector asset base to Rs41 billion by end of December 2016. The increase in the assets indicates a growth of 11.41 percent from the June 2016, when the total assets of the modaraba sector were recorded at Rs36.8 billion. Listed Islamic banks have 25,000 shareholders, whereas modaraba sector has around 80,000 investors. The growth in the sector was due to low level of leverage, healthy dividend payouts and other tax incentives available to sector. As a result of recent reforms by the SECP, the sector has managed to shake off its lackluster image and moved to the forefront of the non-banking financial institution (NBFI) segment, experts said at a workshop on the modaraba sector held at the SECP head office.
The Economic Coordination Committee of the Cabinet (ECC) on Monday approved a proposal from the Ministry of Water and Power for issuance of Sovereign Guarantee in respect of syndicated term finance facility for the power sector. Federal Minister for Finance Mohammad Ishaq Dar chaired the meeting of the Economic Coordination Committee of the Cabinet (ECC). The meeting had a detailed discussion on the proposal by the Ministry of Industries and Production for release of Rs1035.202 million to the Utility Stores Corporation (USC) on account of maintaining subsidised prices of 11 essential items. The chair with consensus of the House deferred the matter of release of funds and ordered a special audit of the sale-purchase prices of certain items within 15 days to determine the need for release of the amount of subsidy.
More than 90 percent of the leather industry is unable to avail the Prime Minister incentive package of Rs180 billion announced recently for the export-oriented industries, as the Commerce Ministry has ignored all major finished leather products HS Codes in its notification. Industry sources said that the second biggest export-oriented industry of the country was still deprived of the PM export fund due to sheer negligence of the ministry, which failed to include the export-related HS Codes of finished and tanned leather in the related SRO 62(I)/2017 issued on Feb 2, 2017 despite detailed information provided by the industry.
Iran is ready to increase electricity supply to Pakistan from the existing over 100 megawatts to 3,000 megawatts, said Iranian Consul General Ahmad Mohammadi. According to Radio Tehran, he expressed these words while speaking at the Iranian Consulate General at an event held to mark the 38th anniversary of the Islamic Revolution. The consul general was of the view that Iran-Pakistan (IP) gas pipeline is the least expensive, most secure and profitable source of energy for Pakistan. It is a turning point for ties between the two countries and both are determined to complete it at the earliest, he said.
Market is expected to remain volatile. Traders are advised to exercise caution, take profit on higher levels and buy on dips.

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