PSX Daily Market Review - 19th May 2017

Trading volume at PSX floor dropped by 69.67 million shares or 18.74%, DoD basis. Whereas, the KSE100 Index opened at 51511.41, posted a day high of 51570.29 and a day low of 50875.11 during the last trading session, while the session suspended at 50956.60 with a net change of -554.81 points and a net trading volume of 69.29 million shares. Daily trading volume of KSE100 listed companies dropped by 38.05 million shares or 35.45%, DoD basis.
Foreign Investors remained in a net selling position of 4.28 million shares and the net value of Foreign Inflow dropped by 6.88 million US Dollars. Categorically, Foreign Individual and Corporate investors remained in net selling positions of 0.026 and 4.97 million shares but Overseas Paksitanis remained in a net buying position of 0.71 million shares. While on the other side, Local Individuals and Brokers remained in net selling positions of 11.18 and 6.3 million shares but Local Companies, Banks, NBFCs and Mutual Funds remained in net buying positions of 0.036, 11.86, 3.02 and 4.29 million shares, respectively.

Asian stocks were mixed on Friday, while the dollar surrendered some of the overnight gains it made on strong economic data amid ongoing political turbulence around U.S. President Donald Trump. MSCI broadest index of Asia-Pacific shares outside Japan slipped 0.1 percent, on track for a weekly loss of 0.5 percent. Japanese Nikkei reversed early gains to trade 0.15 percent lower, extending declines for the week to 1.8 percent for the week. Chinese shares added 0.1 percent, up 0.4 percent for the week. Hang Seng advanced 0.2 percent, set for a weekly rise of 0.1 percent.
Industrialists have called upon the government to obtain input from the relevant sectors prior to finalisation of Free Trade Agreement (FTA) with various countries. “The results of previous FTAs especially with China have not been encouraging for the local industry and we fear similar results regarding Pak-Turkey FTA,” said Ameen Jan, Former management consultant and strategy advisor at Mckinsey & Company and United Nations.
The second Initial Public Offering (IPO) of this year, scheduled to be floated on May 23 and 24, will be available for subscription through the Centralised eIPO System. The electronic system of IPO has been launched after the approval of the regulators, Securities and Exchange Commission of Pakistan and the State Bank of Pakistan. The Centralised eIPO System will be available for the upcoming IPO of Ittefaq Iron Industries Ltd. The book building for the company’s IPO was completed on May 18.
The Sindh Revenue Board (SRB) has launched a tax incentive package that allows taxpayers up to 95 per cent exemption on the default surcharge, total remission of penalties and immunity from arrest and prosecution. Taxpayers will have to deposit the outstanding principal and default surcharge within the prescribed time frame to avail this package.
Hyundai of South Korea has joined hands with Al-Haj Group to introduce top-of-the-line heavy commercial vehicles (HCV) through a technology transfer contract (TTC) under the subsidiary of Al-Haj Hyundai Ltd. Al-Haj Hyundai will initially introduce a heavy duty truck Xcient, Universe Luxury buses and Mighty medium and light duty trucks. Later on, Al-Haj Hyundai also plans to introduce other products of Hyundai in cargo and passenger-handling segments. The China-Pakistan Economic Corridor (CPEC) has the potential to facilitate up to four per cent of global trade by 2020.

Today ATRL, PACE, PSMC , and TRG may lead the market in the positive direction.

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