PSX Daily Market Review - 17th May 2017

Trading Volume at PSX floor increased by 24.9 million shares or 7.06%, DoD basis. Whereas, the KSE100 Index opened at 52821.55 with a positive gap of 433.68 points, posted a day high of 52846.70 and a day low of 51754.07 during the last trading session. The session suspended at 51813.19 with a net change of -574.68 points and a net trading volume of 120.54 million shares. Daily trading volume of KSE100 listed companies dropped by 27.24 million shares or 18.49%, DoD basis.
Foreign Investors remained in a net selling position of 4.54 million shares and the net value of Foreign Inflow dropped by 2.28 million US Dollars. Categorically, Foreign Individuals, Corporate and Overseas Pakistani investors remained in net selling positions of 0.013, 2.72 and 1.81 million shares, respectively. While on the other side, Local Individuals and Brokers remained in net selling positions of 10.32 and 5.64 million shares, but Local Companies, Banks, NBFCs and Mutual Funds remain in net selling positions of 1.71, 2.81, 1.22 and 8.46 million shares, respectively.

U.S. share futures and the dollar slipped in early Asian trade on Wednesday after reports that President Donald Trump asked then-FBI Director James Comey to end a probe into his former security adviser. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipped 0.1 percent while Japanese Nikkei .N225 fell 0.6 percent. Oil prices dropped following data that showed an unexpected rise in U.S. inventory. U.S. crude futures traded at $48.28 per barrel CLc1, down 0.8 percent from late U.S. levels.
The Annual Plan Coordination Committee (APCC) on Wednesday finalised a development programme of Rs2.158 trillion for the next year, an increase of 29 per cent over the current year Rs1.675tr outlay. This indicates massive allocations by federal and provincial governments for development schemes next year, showing a quest by the competing political parties for winning over voters out of public money ahead of general election next year.
The Supreme Court has ordered National Refinery to pay Rs305 million to the State Bank of Pakistan (SBP) for failing to pay Saudi Aramco (Saudi Arabian Oil Company) its dues on time. A three-member bench headed by Chief Justice Mian Saqib Nisar heard the case, filed by the Federal Board of Revenue (FBR). It concerned a fine levied by SBP on National Refinery for violating a 1998 contract. National Refinery lawyer had attempted to argue that SBP had not defined whether the payments were fines or penalties. However, the court dismissed National Refinery appeal and upheld the fine imposed by SBP.
In line with its objectives of promoting good governance practices, ensuring investor protection and having skilled investment advisers, the Securities and Exchange Commission of Pakistan (SECP) has prescribed certification requirement for all those providing advisory services to capital market customers. Such persons will be required to obtain the Financial Advisors Certification offered by the Institute of Financial Markets of Pakistan (IFM). Furthermore, persons distributing mutual fund units shall be required to obtain the Mutual Fund Distributors Certification offered by IFM. In order to facilitate compliance with the requirement, existing and new securities and futures advisers have been given a year to obtain the said certification. The certification requirement will also apply to chief executives and heads of advisory function of the entities giving advice to customers.
The foreign investors have expressed serious concerns on the government’s plan to expand the super tax on affluent and rich individuals, association of persons and companies earning income above Rs500 million for next financial year in the budget. The government is considering expanding the super tax for another year, which was introduced for the first time in 2015 for only a year after the Pakistan Army launched Zarb-e-Azb military operation against militants. However, the government had expanded it in 2016 and now again it is planning to expand the super tax for another year 2017-18. The government had imposed a temporary four percent super tax on all banks and three percent on other companies and individuals with an annual income of over Rs500 million to rehabilitate the temporarily displace persons (TDPs) of the Zarb-e-Azb military operation.

Today EFERT, ENGRO, HBL ,MCB and PSO may lead the market in the positive direction.

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