PSX Daily Market Review - 20th July 2017

Foreign Investors remain in net selling of 5.49 million shares and net value of Foreign inflow dropped by 1.73 million US Dollars. Categorically, Foreign Corporate investors remain in net selling of 6.18 million shares but Foreign Individuals remain in net buying of 0.7 million shares. While on the other side Local Individuals, Banks and Brokers remain in net buying of 7.12, .078 and 2.95 million shares respectively but Loal Companies and Mutual Funds remain in net selling of 4.58 and 1.57 million shares.

Asian shares scaled near-decade peak on Thursday, bolstered by a surge in global stocks to a record high on strong U.S. corporate earnings, while investors awaited the Japanese and European central bank meetings for clues on their policy outlooks. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.15 percent, hovering near its highest level since December 2007. Japanese Nikkei .N225 gained 0.1 percent. Australian stocks rose 0.3 percent and South Korean KOSPI .KS11 advanced 0.15 percent. The MSCI World index .MIWD00000PUS rose for its tenth straight session on Thursday and set a record high for the sixth consecutive day, lifted by all-time closing highs on Wall Street on strong earnings reports.
The government on Tuesday allowed exports of 300,000 tonnes of sugar provided the industry maintains stable domestic prices. The decision was taken at a meeting of the Cabinet’s Economic Coordi­nation Committee (ECC) presided over by Finance Minister Ishaq Dar. The committee rejected a call for the export of 600,000 tonnes of sugar recommended by the ministries of commerce and industries. Instead it decided that sugar exports would be immediately stopped in case of abnormal increase in domestic prices. The exports would entail no rebate or subsidy, an official said.
The revenue collection recorded a growth of over 30 per cent in the first 15 days of 2017-18. The spurt is despite the entanglement of the Federal Board of Revenue (FBR) in the Panama Papers investigation. In addition, transfers of some of the board’s senior officers also took place recently. Tax officials have lately been busy with the JIT and Supreme Court proceedings instead of focusing on revenue policies. A similar trend exists in key ministries as the Panama Papers case has distracted senior government officers from their regular work.
Pakistan is taking measures to improve and upgrade customs procedures in line with international standards. During a meeting on Tuesday, Finance Minister Ishaq Dar informed World Customs Organisation (WCO) Secretary-General Kunio Mikuriya that steps were also being taken to facilitate and promote border trade. “Pakistan fully supports all measures for enhancing regional connectivity, cooperation and promotion of regional trade is a major area in this regard.”
The Senate Standing Committee on Finance on Tuesday was briefed by State Bank officials about current laws to counter money laundering, loan default and other financial crimes. The committee was informed that more than 200 cases — filed under the Anti-Money Laundering Law — have been forwarded by the Financial Monitoring Unit (FMU) of the government to the Federal Board of Revenue (FBR). Chairman of the committee Senator Saleem Mandviwalla enquired if the law was being used as a threatening tool by certain elements within the FBR.

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