PSX Daily Market Review - 15th Oct 2019

Trading volume at PSX floor dropped by 149.17 million shares or 51.96% on DoD basis, whereas the benchmark KSE100 index opened at 34,507.27, posted a day high of 34,697.34 and a day low of 34,124.81 points during last trading session while session suspended at 34,186.26 points with net change of -289.43 points and net trading volume of 99.23 million shares. Daily trading volume of KSE100 listed companies dropped by 101.03 million shares or 50.45% on DoD basis.
Foreign Investors remained in net selling positions of 7.37 million shares but net value of Foreign Inflow increased by 0.86 million US Dollars. Categorically, Foreign Individual and Overseas Pakistanis remained in net buying positions of 0.06 and 4.55 million shares but Foreign Corporate investors remained in net selling positions of 11.98 million shares. While on the other side Local Individuals, Banks and Insurance Companies remained in net buying positions of 14.10, 1.52 and 0.08 million shares but Local Companies, NBFCs, Mutual Fund and Brokers remained in net selling positions of 1.23, 0.34, 0.94 and 6.63 million shares respectively.

Stocks rise on cautious Brexit deal hopes, oil extends losses
Asian stocks and Wall Street futures inched higher on Tuesday as some investors held out hope that Britain still had a chance to avoid a messy exit from the European Union at key negotiations this week. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.1%. South Korean shares .KS11 rose 0.21%, while Japan's Nikkei stock index .N225 was up 1.74%. Capping broader gains, however, was a perceived lack of progress coming out of U.S.-China trade negotiations. Reports of a “Phase 1” trade deal between the United States and China last week had earlier cheered markets but the dearth of details around the agreement has since curbed this enthusiasm with oil prices extending declines, Chinese stocks weaker and the safe-haven yen holding gains versus dollar. The focus has now shifted to Europe where officials from Britain and the EU will meet at a make-or-break summit on Thursday and Friday that will determine whether or not Britain is headed for a so-called no-deal Brexit.
Saindak Metals profit decreased by 32pc during 2017-18
The Saindak Metals Limited Company’s profit was decreased by 32 percent during 2017-18 as compared to the previous year while it has registered a sharp increase of up to 304 percent in its various other expenses. The Saindak Metals Limited Company’s profit for 2017-18 was decreased by 32 percent from Rs562.33 million in 2016-17 to Rs380.31 million in 2017-18. The net profit of the company in 2011-12 was Rs6,444.60 million. The reasons for sharp decline in net profit in each year may be explained, the Auditor General of Pakistan (AGP)said on the audit report on the Account of Petroleum division for 2018-19.
Aramco to announce IPO ‘very soon’: chairman
Saudi Arabia’s energy giant Aramco will announce its long-awaited stock market debut “very, very soon,” its chairman said on Monday. Aramco has said it plans to float around five percent of the state-owned company in 2020 or 2021 in what could potentially be the world’s biggest stock sale. “Aramco’s IPO will take place sooner than you think,” said Aramco chairman Yasir al-Rumayyan at a Saudi-Russian forum in Riyadh. “I think that the announcement will be very, very soon.” According to Bloomberg, Aramco’s board is expected to give final approval by the end of this week to proceed with the sale.
Govt drops plan to form body on businessmen’s NAB cases
The federal cabinet, which met on Monday under Prime Minster Imran Khan, took some important decisions, approving an ordinance regarding formation of a regulatory authority on real estate and calling a meeting of the provinces to bring down skyrocketing prices of essential items. The cabinet, which usually meets on Tuesdays, held its meeting a day earlier as Prime Minister Khan will be travelling to Saudi Arabia on Tuesday as part of his efforts to ease tension between Iran and Saudi Arabia. He visited Tehran on Sunday, offering the Iranian leadership to play the role of facilitator to iron out differences between the two Muslim countries. The cabinet decided to drop its plan to form a committee on business community’s cases and threw the ball into National Accoun­tability Bureau’s (NAB) court and now it would be up to the anti-graft body as to how it would deal with such cases and negate an impression of “harassment”.
Investment in govt papers reaches record Rs10.3tr
Investment in government papers, mainly dominated by the banking sector, set new record as it crossed Rs10 trillion-mark. The State Bank of Pakistan (SBP), in its latest report released on Monday showed that banks and non-banks including corporate sector investments in the government papers reached Rs10.3 trillion by the end of August. The major chunk of these investments came in the short-term papers. Banks’ investment reached to extraordinary levels at Rs7.94tr reflecting their investment strategy to book maximum profits while investing in risk-free instruments and made up for 77.1 per cent of the total investments whereas the rest came from non-banks including insurance companies, funds and corporate sector amounting at Rs2.361tr.