PSX Daily Market Review - 18th July 2017

Foreign investors remained in a net buying  position of 1.92 million shares and the net value of Foreign inflow increased by 3.32 million US Dollars. Categorically, Foreign Individuals, Corporate and Overseas Pakistani investors remained in net buying positions of 0.13, 0.93 and 0.85 million shares, respectively. While on the side Local Individuals, Banks and Mutual Funds remained in net buying positions of 1.79, 0.13 and 1.31 million shares but Local Companies and Brokers remained in net selling positions of 2.47 and 1.47 million shares, respectively.

Asian shares stepped back from more than two-year highs on Tuesday and the dollar extended losses as passage of a U.S. healthcare bill grew doubtful, and as investors bet the Federal Reserve will be more cautious about raising interest rates. MSCI broadest index of Asia-Pacific shares outside Japan was down 0.1 percent, a day after scaling its loftiest levels since April 2015. Japanese Nikkei stock index dropped 0.6 percent, as markets resumed trading after a public holiday on Monday and caught up to the resurgent yen.
The government on Monday announced three new hydrocarbon finds in Sindh with a total estimated flow of about 52 million cubic feet per day (mmcfd) and further claimed credit for achieving 101 discoveries in four years of its tenure. Sharing details at a press conference, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said Petroleum Exploration Limited (PEL), a private firm, made the gas condensate discovery in Badin-IV North exploration licence at Zainab-1 well in Tando Mohammad Khan district of Sindh province.
Foreign direct investment (FDI) increased 4.6 per cent to $2.41 billion in 2016-17, data released by the State Bank of Pakistan (SBP) showed on Monday. FDI in the last fiscal year was the highest since the PML-N government came to power four years ago. It was $1.45bn in 2012-13 and fell to $988 million in 2014-15. It improved to $2.3bn in 2015-16 and inched up further to reach the eight-year high in 2016-17.
Commerce and textile ministries have urged the Ministry of Finance to allow the continuation of an unconditional cash subsidy on exports in 2017-18 under the prime minister’s Rs180 billion support package. “We have approached the finance ministry several times for a policy change,” an official source in the commerce ministry told Dawn on Monday. The prime minister announced on Jan 11 a subsidy package of Rs180bn to boost exports. The package promised the unconditional cash subsidy in the first six months (January-June). Exporters agreed to avail the same subsidy by achieving an incremental increase of 10 per cent in export proceeds in 2017-18.
Chinese entrepreneurs on Mon­day showed interest to invest in Pakistan’s agriculture sector to produce silk worms, mulberries and many other agro products. A delegation of Chinese entrepreneurs led by Mr Lee of China’s commerce ministry visited Islamabad Chamber of Commerce and Industry (ICCI). Speaking on the occasion, Mr Lee said that Chinese entrepreneurs are looking for suitable land to set up an agriculture farm in the first phase and in the second phase they would set up a factory in Pakistan to produce silk.

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