PSX Daily Market Review 18 Jan. 2017

The Bench Mark KSE100 Index Opened at 48978.57 with a positive gap of 90 points posted day high of 49006.00 and day low of 48108.93 during last trading session. The session suspended at 48678.65 with net change of -209.89 points and net trading volume of 179.47 million shares. Daily trading volume KSE100 listed companies increased by 22.30 million shares or 14.19% on DOD bases.

Asian stock markets held near three-month highs on Wednesday as investors scooped up exporter shares after U.S. President-elect Donald Trump expressed concerns over a stronger dollar. In Asia, MSCI ex-Japan Asia-Pacific shares index .MIAPJ0000PUS rose 0.3 percent, just shy of a three-month high hit last Thursday. Stock markets in Hong Kong .HSI and China .SSEC led the gains. Trump comments on the dollar has helped relieve downward pressure on the renminbi and on Chinese equities and we have seen a steady pick up in capital flows from mainland investors into Hong Kong stocks, said Alex Wong, a portfolio manager at Ample Capital with $100 million in assets under management. In early deals, Hong Kong stocks poked above a key resistance level around 23,000 which if successfully breached would position the market for further gains, according to analysts.
Oil and Gas Regulatory Authority (Ogra) Tuesday directed the gas utilities to ensure adequate gas pressure for both domestic and commercial consumers. In a directive, the Ogra directed the gas utilities (SNGPL and SSGC) to put all efforts in place to ensure adequate gas pressure to meet the contractual obligations in line with the minimum performance and services standards notified by the Ogra.
The finance minister gave instructions to align the medium-term fiscal policy with the targets provided in the amended Fiscal Responsibility and Debt Limitations (FRDL) Act. Dar underlined the importance of recent amendments in the FRDL Act, which has assisted in limiting the deficit of the federal government. The FRDL Act requires the federal government to decrease its deficit in three years, starting with 2017-18, to 4 per cent of the GDP, and thereafter maintaining it at a maximum of 3.5pc.
The Senate Standing Committee on Finance on Thursday approved a law aimed at making amendments to the Fiscal Responsibility and Debt Limitation (FRDL) Act-2005. Committee Chairman Saleem Mandviwala said as committee was opposed to making amendments to the FRDL Act-2005 through Finance Bill-2016, the government has agreed to bring these amendments in the form of a regular bill. He, however, stated that the government requested to process it quickly.
Textile manufacturing and exporting associations on Tuesday asked the government to pay all of their pending rebate claims through State Bank of Pakistan at the stage of export proceeds payments. The associations also demanded of the government to permit the stitching units to import raw material under DTRE and warned that rebate grant of four percent to cotton yarn exporters had yielded a shortage of the input commodity for value-added textile manufacturing.
OGDC, MLCF, CHCC and ICI can lead market in positive direction.

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