PSX Daily Market Review - 1st Aug 2017

Foreign Investors remained in a net selling position of 20.35 million shares and the net value of Foreign inflow dropped by 17.89 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in a net buying positions of 0.19 and 3.54 million shares but Foreign Corporate Investors remained in a net selling position of 24.07 million shares. While on the other side, local Individuals and Mutual Funds remained in net buying positions of 19.5 and 22.31 million share but Local Companies, Banks, NBFCs and Brokers remained in net selling positions of 3.69, 0.34, 0.12 and 14.91 million shares, respectively.

Asian shares ticked up in early Tuesday trade as investors looked to a barrage of economic data around the world to confirm recent signs the global economy is in robust health with inflation staying well contained. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.1 percent, while Tokyo Nikkei .N225 rose 0.4 percent. On Wall Street, the Dow Jones Industrial Average .DJI rose 0.28 percent to end at a record high of 21,891.12 but the Nasdaq Composite .IXIC pulled back 0.42 percent after recent rallies. MSCI ACWI .MIWD00000PUS, an index of 47 stock markets of the world, logged its ninth consecutive month of gains in July on the back of expectations of solid global economic growth.
Ongoing impo­rts of Liqu­efied Natural Gas (LNG) are meeting up to 25 per cent of gas shortage, which currently hovers around 2.5 billion cubic feet per day. According to an official at the Ministry of Petroleum and Natural Resources, Pakistan has saved approximately $1.7bn by importing LNG, which is cheaper than furnace oil. “Pakistan has imported 6.1 million tonnes of LNG through the country’s only LNG terminal, which is located at Port Qasim. Operated by Engro, the terminal has handled 94 LNG cargo ships within 28 months and re-gasified approximat­ely 284.7bn cubic feet of gas into the national distribution network,” an official said.
In the absence of a political leadership, the bureaucratic machinery of the state struggled to take a routine monthly decision to revise prices of petroleum products on the due date of July 31 and decided to keep them unchanged for the month of August. The secretaries of petroleum, finance and law and justice spent more than 12 hours on Monday in consultations at times also touching base with the presidency for a direction whether or not to implement recommendations of the Oil and Gas Regulatory Authority (Ogra) issued last week.
The Fed­eral Board of Revenue (FBR) collected Rs200 billion in the first month of this fiscal year exceeding the target set for the month. It registered a growth of 22pc over the collection of Rs164bn in the same month last year. FBR Official Spokes­person Dr Muhammad Iqbal on Monday said that the revenue collected was the provisional target for July.“We are expecting that few more billions will be received when the revenue collection figures are finalised next week,” he added. The government has projected a revenue collection target of Rs4,013 billion for 2017-18. The breakup shows that the FBR will collect Rs1,594.910bn under direct taxes and Rs2,418.090bn in indirect taxes.

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

The Benchmark KSE100 Index bounced back after resisting from a horizontal resistant region and failed to close above its major resistant region of 46400 points even after penetration of the level.  It closed below that major resistant trend line during the last trading session. For current trading session, the index has supports around 45800 and 45633 which fall on the correction levels of its last bullish rally. Selling on strength is recommended until the index closes above 46800, Daily stochastic generated a bearish crossover and MAORSI is ready to follow. The occurrence of this bearish crossover can push the index back in negative zone.

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