PSX Daily Market Review -16 March 2017

The Bench Mark KSE100 Index Opened at 48630.19, posted a day high of 48767.44 and a day low of 48209.89 during last trading session while session suspended at 48305.83 with a net change of -233.23 points and net trading volume of 114.13 million shares. Daily trading volume of KSE100 listed companies increased by 21.57 million shares or 23.31% on DoD basis.
Foreign Investors remained in net selling position of 5.12 million shares and net value of Foreign Inflow dropped by 6.5 million shares. While on the other side local Individuals, Banks and Brokers remained in net selling position of 9.01, 6.7 and 4.54 million shares respectively but Local Companies, NBFCs and Mutual Funds remained in net buying position of 13.55, 0.27 and 6.4 million shares respectively.

The U.S. Federal Reserve raised interest rates on Wednesday for the second time in three months, a move spurred by steady economic growth, strong job gains and confidence that inflation is rising to the central bank target. The decision to lift the target overnight interest rate by 25 basis points to a range of 0.75 percent to 1.00 percent marked a convincing step in the Fed effort to return monetary policy to a more normal footing. Fed Chair Janet Yellen pointed to growing faith in the economy trajectory. We have seen the economy progress over the last several months in exactly the way we anticipated, Yellen said in a press conference following the end of a two-day policy meeting. We have some confidence in the path the economy is on. The Fed also stuck to its outlook for two additional rate increases this year and three more in 2018. The central bank lifted rates once in 2016.
Finance Minister Ishaq Dar said on Wednesday that preparations for next budget 2017-18 were underway, which would focus on attaining higher, sustainable and inclusive economic growth. Talking to US Ambassador David Hale here, he expressed the confidence that the two countries would continue to work together for the promotion of bilateral relations. He was accompanied by Ted Seager, Economic Counselor at the US Embassy on the occasion. The minister and ambassador discussed the current status of trade, investment and economic ties between Pakistan and the US. The Ease of Doing Business Reforms underway in the country also came under discussion. The minister said that Pakistan and the US were longstanding friends, partners and strategic allies.
The government initially plans zero load shedding for the less loss incurring urban areas, and in this connection has directed the distribution companies (Discos) to provide to it the segregation of urban and rural feeders within one week, it was learnt here on Wednesday. The government has given seven days to the Discos to evolve a strategy for accelerating recoveries, reduce losses and start zero load shedding in urban areas. The directives were issued by the Federal Secretary of Water and Power Yunus Dagha in a meeting with Discos on the issue of collections. In the meeting, officials of Discos briefed the secretary on the situation pertaining to losses and collections by the companies.
The circular debt in petroleum sector has reached 272.3 million Rupees. Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi told National Assembly on Wednesday. He said that receivable from power sector had soared to 231 million Rupees. “PIA has to pay 15 million Rupees, whereas the arrears in LNG and SNGPL are around 41 million Rupees. He said government had instructed Ministry of Petroleum and Natural Resources to ensure uninterrupted supplies to WAPDA, HUBCO and KAPCO to avoid power crisis in the country. However, Ministry of Water and Power could not make timely payments to PSO against supplies which resulted in considerable accumulation of receivables against these entities.
Pakistan would reopen its border crossings with Afghanistan after consulting the relevant stakeholders and improving security on the borders, said Commerce Minister Khurram Dastgir Khan while addressing a press conference here on Wednesday. “Pakistan agrees to tackle trade and security related matters separately and Afghanistan must do the same to enhance the bilateral trade,” the minister asserted. Trade activities with the neighboring Afghanistan remain suspended since February 17. He further said, “Afghanistan has not responded to Pakistan’s proposal of signing a Preferential Trade Agreement (PTA).” He informed that trade policy with India had not been changed, and the government was still pursuing 2012 policy. “There is no hurry in signing a free trade agreement with India,” Dastgir said, and added, “The government will not take any decision against national interests.”

SNGP, ACPL, ANL and Overall Steel Sector (CSAP) can lead the market in the positive direction.

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