PSX Daily Market Review - 16th Jan 2020

Trading volume at PSX floor dropped by 78.41 million shares or 31.41% on DoD basis, whereas the benchmark KSE100 index opened at 43,212.59, posted a day high of 43,239.88 and a day low of 42,877.90 points during last trading session while session suspended at 42,993.03 points with net change of -214.01 points and net trading volume of 119.95 million shares. Daily trading volume of KSE100 listed companies dropped by 31.17 million shares or 20.63% on DoD basis.
Foreign Investors remained in net buying positions of 3.09 million shares and value of Foreign Inflow increased by 2.21 million US Dollars. Categorically, Foreign Individuals remained in net selling positions of 0.11 million shares but Foreign Corporate and Overseas Pakistanis remained in net buying positions of 2.43 and 0.76 million shares. While on the other side Local Individuals, Banks, NBFCS, Brokers and Insurance Companies remained in net buying positions of 10.68, 1.15, 0.09, 1.27 and 3.18 million shares but Local Companies and Mutual Fund remained in net selling positions of 7.91 and 10.68 million shares respectively.

World stocks scale record peak on U.S.-China trade deal
World stocks inched to a record high on Thursday after the United States and China signed a deal to defuse their 18-month trade war, which has weighed on global economic growth and hampered investments.MSCI’s broadest index of world stocks .MIWD00000PUS firmed 0.04% in early trade after closing at record level on Wednesday while its index on Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.10%. Japan's Nikkei .N225 rose 0.14% while Australian shares were 0.6% higher. U.S. President Donald Trump and Chinese Vice Premier Liu He on Wednesday signed a deal that will roll back some tariffs and see China boost purchases of U.S. goods and services by $200 billion over two years. The deal does not address structural economic issues that led to the trade conflict, and does not fully eliminate the tariffs while the $200 billion purchase targets look daunting to achieve.
Consumers brace for higher cooking oil, flour prices
After enduring a Rs5 per kg hike on various flour varieties, consumers on Wednesday witnessed another price shock of Rs30 per kg/litre in ghee and cooking oil. The claims made by Sindh Food Minister Hari Ram Kishori Lal, wholesalers and the Karachi commissioner in the last one month over possible drop in wholesale and retail flour prices to Rs43 and Rs45 per kg have turned out to be nothing more than a political stunt. Flour millers, who had earlier agreed to reduce flour prices, raised them by Rs5 per kg. A random market survey showed increase in Bake Parlour and Ashrafi fine flour 5kg and 10kg bags to Rs310-330 and Rs610-630 from Rs290 and Rs580-590 respectively.
FBR intensifies efforts to nab tax evaders
The Federal Board of Revenue (FBR) has asked field formation for the enforcement of systematic raids on tax evaders and non-compliant persons across the country, a high ranking official told Dawn on Wednesday. The direction comes amid reports that some big taxpayers are involved in tax evasion and have been identified for different actions under Section 203 of Income Tax Ordinance and Anti-Money Laundering Act 2010. “All field formations of the Intelligence and Investigation (I&I) Directorate have been instructed to come out of hibernation and freely combat the menace of tax evasion, tax fraud, money laundering and terror financing,” FBR Director General I&I Dr Bashirullah Khan said.
US, China sign ‘momentous’ trade deal
After nearly two years of conflict between the world’s two dominant economic powers, the United States and China signed a trade truce on Wednesday, letting businesses around the globe breathe a sigh of relief. US President Donald Trump, who currently faces an impeachment trial and then a tough reelection bid later this year, called the agreement “momentous.” But tariffs on hundreds of billions of dollars in imports remain in place, leaving American consumers and businesses to foot the bill. The “phase one” agreement includes pledges from China to beef up purchases of American crops and other exports, provides protections for US technology, and new enforcement mechanisms.
Provision of power to textiles at concessional rate to continue
The government has reiterated to continue with the provision of electricity to the textile industry at the concessional rate of 7.5 cents per unit; however they will be liable to quarterly adjustments and other chargeable rates. Any other charge over and above 7.5 cents per unit is being charged from the textile industry as per the decision of the Supreme Court of Pakistan, official spokesman of the Ministry of Energy (Power Division) said. He said that the concession has not been withdrawn and it is still being provided to the textile industry and government is charging 7.5 cents per unit to the industry under the announced scheme. The charges of electricity which were other than the committed 7.5 cents rate are chargeable, the spokesman said. Other charges being charged are also held by the Supreme Court in its decision, the spokesman added.