PSX Daily Market Review - 17th April 2017

The Bench Mark KSE100 Index opened at 47950.58, posted a day high of 47955.60 and day low of 47543.09 during last trading session while it suspended at 47577.06 with a net change of -373.52 points and net trading volume of 53.16 million shares. Daily trading volume of KSE100 listed companies dropped by 35.48 million shares or 40.02% , DoD basis.
Foreign Investors turned back to buying and remained in net buying position of 1.41 million shares but net value of Foreign Inflow dropped by 0.64 million US Dollars. Categorically Foreign Individuals and Overseas Pakistanis remain in net buying position of 0.06 and 2.5 million shares but Foreign Corporate investors remain in net selling position of 1.16 million shares. On the other hand, Local Individuals, Mutual Funds and Brokers remained in net selling position of 2.06, 2.07 and 0.2 million shares respectively, however, Local Companies and Banks remained in net buying position of 2.78 and 0.12 million shares.

Shares dipped on Monday while the dollar and U.S. bond yields fell after soft U.S. economic data hurt investor sentiment already frayed by worries over North Korea and upcoming French elections. That dwarfed any relief for market players after the U.S. Treasury department did not name China as a currency manipulator, avoiding an all-out confrontation on currencies between the world two largest economies. S&P 500 mini futures dipped 0.1 percent to 2,325, edging near a six-week low of 2,317.75 touched in late March following U.S. President Donald Trump defeat over healthcare reform. MSCI broadest index of Asia-Pacific shares outside Japan fell 0.2 percent in holiday-thinned trade, while Japanese Nikkei shed 0.4 percent. The biggest focus during the Asian trading hours is Chinese economic data, due at 0200 GMT, including January-March GDP. Economists expect growth in the world second-biggest economy to have expanded 6.8 percent compared to a year earlier, the same pace as the preceding quarter.
Cable and wire manufacturers have demanded tax exemptions similar to ones offered to Chinese and other importers. They said the current exemptions from customs duty and sales tax on the import of wire and cable for CPEC projects promoted imports from China at the cost of local industry. In the first quarter of the current fiscal year, 88 per cent (or $21 million) of wire and cable imports were originated from China, according to official data. In the latest budget the government exempted imports and supply of materials and equipment, including electrical wire and cable, for the development of Gwadar port and free economic zones. But these exemptions were not extended on goods produced locally.
The government has decided to announce the budget for financial year 2017-18 on May 26. Talking to Dawn on Sunday, Finance Minister Ishaq Dar said the announcement of the budget had been pulled earlier because Ramazan was expected to begin on May 28, adding that preparations were being made accordingly. Successive governments had been making commitments to announce the budget in May to provide reasonable time for parliamentary debate, but failed to do so. It will be the first time that the budget comes in the public domain before June.
The government raised Rs258.85bn from the auction of Pakistan Market Treasury Bills of various tenors held last Thursday, smaller against the received bids of Rs337.88bn. It was however, higher against the auction target of Rs250bn. Of the total raised amount, three month T-bills fetched the entire amount of Rs258.85bn at a cut off yield of 5.99pc. Bids received for three month and six month T-bills were rejected. Three month T-bill attracted the highest amount of Rs272.66bn: six month T-bill Rs63.10bn, and 12 month T-bill Rs2.12bn.
Gwadar, the third deep-water port in Pakistan, now operates three multifunctional piers with an annual throughput capacity of between 50,000 and 70,000 20-foot equivalent units, as well as bringing 20,000 jobs to locals. The port will also serve as a trade gateway for East and Central Asian countries to other parts of the world, according to Chairman, China Communications Construction Co, Liu Qitao on Sunday. After the completion of the construction, CCCC will also be responsible for a series of follow-up projects, such as the operation of a free-trade zone in Gwadar Port, he told local media.

Today PAEL,TRG and Overall Textile Sector (NCL,NML) can lead the market in the positive direction.

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