PSX Daily Market Review - 21st Oct 2019

Trading volume at PSX floor dropped by 22.77 million shares or 16.50% on DoD basis, whereas the benchmark KSE100 index opened at 33,934.92, posted a day high of 34,096.39 and a day low of 33,667.80 points during last trading session while session suspended at 33,870.15 points with net change of -28.41 points and net trading volume of 90.16 million shares. Daily trading volume of KSE100 listed companies dropped by 17.56 million shares or 16.30% on DoD basis.
Foreign Investors remained in net selling positions of 0.92 million shares but net value of Foreign Inflow increased by 0.24 million US Dollars. Categorically, Foreign Individual and Overseas Pakistani remained in net long positions of 0.05 and 0.49 million shares but Foreign Corporate investors remained in net long positions of 1.46 million shares respectively. While on the other side Local Individuals, Banks and NBFCs remained in net long positions of 5.10, 3.18 and 0.08 million shares but Local Companies, Mutual Funds, Brokers and Insurance Companies remained in net selling positions of 0.13, 2.52, 1.75 and 1.32 million shares respectively.

Asian shares edge higher, pound stumbles on Brexit drama
Asian stocks edged higher on Monday as Chinese shares reversed early losses due to hopes for progress in resolving the U.S.-China trade war and expectations for greater investment inflows into Hong Kong. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.19%. Chinese shares .CSI300 rose 0.13%, while Japan's Nikkei .N225 rose 0.28%. The pound slipped from a five-month high against the dollar and the euro after the British parliament forced Prime Minister Boris Johnson to seek a delay to an Oct. 31 deadline for Britain’s departure from the bloc. The vote for an extension dealt a blow to optimism that a deal agreed last week would ensure Brexit happens with little economic disruption. Oil futures fell as lingering economic growth concerns and excess supplies of crude prompted speculators to trim their long positions. Chinese vice premier Liu He said on Friday that China will work with the United States to address each other’s concerns, and that stopping the trade war would be good for both sides and the world.
SAARC CCI for exploiting trade, investment potentials in region
SAARC Chamber (SAARC CCI) Sunday stressed the urgent need for fully exploiting immense trade avenues and investment potentials for economic integration in the region as South Asia holds strategic position in the world. Leader of Pakistani delegation Iftikhar Ali Malik, currently attending 78th SAARC Chamber Executive committee meeting addressing the concluding session said SAARC member countries must focus on removal of non-tariff barriers (NTBs) and work for enhancing B2B interaction to boost trade. He highlighted that although SAARC region holds immense trade and investment potential, being home to 21 percent of world’s population, it still remains one of the least integrated regional blocs with intra-regional trade constituting only 5 percent of the total world trade, in comparison to 51 percent for NAFTA and 25 percent for ASEAN.
Services’ trade exports decrease 7.15pc
The exports of services during the first two months of the current fiscal year decreased by 7.15 percent as compared to the corresponding period of last year. The services exports from the country during July-August (2019-20) were recorded at $809.03 million compared to the exports of $871.35 million during July-August (2018-19), showing decline of 7.15 percent, Pakistan Bureau of Statistics (PBS) reported. The imports of services into the country, however, increased by 10.58 percent during the period under review by going up from $1673.91 million last year to $1850.96 million.
‘State abdicates responsibility to safeguard rights of people’
“We have created two Pakistans – one for the masses and the other for the elite,” says economist Kaiser Bengali. The elite class has created a parallel economy by setting up industries, organisations and services. “All those who got amnesty are thieves and must land in prison.” Mr Bengali says. Speaking at a session on “Economic and Social Inequality” at Asma Jahangir conference at a local hotel on Sunday, Mr Bengali deplored that the state was no more recognising rights. He said the poor were becoming poorer and the governments were busy fudging the poverty data.
Govt push for taming food inflation
Last week, the federal cabinet took notice of the increasing food prices, a major source of surging inflationary pressures in the economy. It ordered (administrative) steps for controlling prices of essential food items and devise a strategy to curb inflation. The cabinet also decided to activate the provincial price control committees and deal strictly with hoarders and speculators. Even though the administration has a very limited ability to control the markets, it is good news that the government has finally realised its responsibility to deal with surging inflation and chip into the central bank’s efforts to stabilise the prices. Inflation, a phenomenon whereby the prices of everything persistently increases, and the value of money or the purchasing power of people declines, is one of the major problems facing Pakistan for more than the last one year.