PSX Daily Market Review - 17th July 2017

Foreign Investors remained in a net buying position of 0.08 million shares and the net value of Foreign inflow increased by 0.53 million US Dollars. Categorically, Foreign Individual and Corporate investors remained in net buying positions of 0.02 and 0.4 million shares but Overseas Pakistanis remained in a net selling of 0.34 million shares. While on the other side, Local Individuals, Banks and NBFCs remained in net selling positions of 8.37, 1.19 and 0.11 million shares, respectively. Local Companies, Mutual Funds and Brokers remained in net buying positions of 5.22, 0.97 and 3.93 million shares, respectively.

Asian stocks set a fresh two-year high on Monday, boosted by stronger-than-expected economic growth in China and bets that lacklustre U.S. data will keep the Federal Reserve cautious about the pace of further policy tightening. Chinese blue-chips recouped steep early losses after data showed the world second-largest economy grew at a slightly faster than expected pace of 6.9 percent in the second quarter, thanks to robust industrial output, retail sales and exports. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS extended earlier gains to climb 0.4 percent after the buoyant China readings. Japanese markets were closed for a holiday. Australian shares , which started the day in negative territory, were 0.1 percent higher, while South Korean KOSPI .KS11 jumped 0.4 percent.
The Inter­national Monetary Fund (IMF) has advised Pakistan to completely eliminate inequitable subsidy on electricity tariff and replace it with direct cash transfers to the deserving to lift them out of poverty. In its latest report on Pakistan under Article-IV consultations with the government, the IMF also highlighted challenges being faced by the flagship Benazir Income Support Programme (BISP) even though it played a critical role in significantly reducing incidence of poverty in the country.
Pakistan’s external account worries are increasing at a time when the government is in disarray after the release of the Joint Investigation Team’s findings regarding the ruling Sharif family’s involvement in money laundering. In a politically charged environment, with the opposition demanding the Prime Minister’s resignation in the light of the JIT findings and Mr Sharif refusing to do so, the IMF has released its article IV consultation report on the state of the economy. The observations made by the IMF regarding external sector vulnerabilities and the inadequacy of foreign exchange reserves have only added to worries regarding the deteriorating health of the external sector.
Sui Northern Gas Company Limited (SNGPL) Managing Director Amjad Latif has said that the company is facing 95 percent gas losses in tehsil Lachi and districts Karak and Hangu of the Khyber Pakhtunkwa. "The locals of all these localities have obtained illegal gas connections, mostly through direct taps and unconventional joining methods, which is not only a loss to the national exchequer in the shape of gas theft, but also in the form of gas wastage through leakages," he told APP. He said SNGPL is making all-out efforts to curb the losses in oil and gas producing areas with the help of police and Federal Investigation Agency (FIA). Whenever, the company launched a campaign for disconnection and removal of this illegal network with the assistance of law enforcement agencies, the locals sealed the plants of Oil and Gas Development Company (OGDCL) and MOL, and blocked the Indus highway, he added.
The Excise and Taxation department Sargodha division recovered Rs746 million taxes from various heads in the division during 2016-17 which is 91 percent of their given target. Similarly, 19000 fake number plates were demolished, 621 unregistered vehicles and 19000 vehicles were challaned for various violations. Excise and Taxation Director Mushtaq Faridi said on Sunday said that property tax system of the region had also been attached with the central computerised system through which people could see their property and tax details online.

The Market is expected to remain volatile today. We advise Traders to exercise caution. Buying on dips and booking gains on strength is recommended.