PSX Daily Market Review 22 Feb. 2017

The Bench Mark KSE100 Index Opened at 49924.70, posted day high of 49103.59 and day low of 48655.92 during last trading session while session suspended at 49015.09 with net change of 85.97 points and net trading volume of 118.97 million shares. Daily trading volume of KSE100 listed companies increased by 6.39 million shares or 5.68% on DOD bases.
Foreign Investors remain in net selling of 27.82 million shares and net value of Foreign Inflow dropped by 5.46 million US Dollars. Categoricall Foreign Individual and Coporate Investors remain in net selling position of 0.018 and 34.36 million shares but overseas Pakistanis remain in net buying position of 6.56 million shares. While on the other side Local Companies, Banks, NBFCs, Mutual Funds and Brokers remain in net buying position of 21.30, 1.61, 0.42, 9.60 and 0.77 million shares respectively but Local Individuals remain in net selling of 6.46 million shares.

Asian stocks edged up on Wednesday, joining a record-setting night for world markets as investors cheered upbeat factory activity in Europe and solid earnings on Wall Street. The dollar was steady after hawkish comments from top Federal Reserve officials bolstered expectations the world no. 1 economy was strong enough to keep policymakers on course to further raise rates this year. MSCI broadest index of Asia-Pacific shares outside Japan nudged up 0.1 percent, taking its cues from the world stock index rising to an all-time peak of 446.21 overnight. Japanese Nikkei and South Korean Kospi each added 0.15 percent. The Dow rose 0.6 percent on Tuesday to notch a record closing high for the eighth straight session, lifted by strong earnings reports from Wal-Mart and Home Depot.
The Inter­national Monetary Fund (IMF) on Tuesday called for establishing a policy framework and environment that promote financial stability and sound development of Islamic banking. The guidelines, released by the IMF headquarters in Washington, noted that it was particularly to develop such a framework in the countries where Islamic banking has become systemically important. On Feb 3, the IMF Executive Board held its first formal discussion on Islamic banking and adopted a set of proposals on the role that the Fund should play in this area.
The Oil and Gas Regulatory Authority (Ogra) and the oil industry are negotiating an out-of-court settlement on the new fee structure that has been in dispute for more than a year, sources said. A senior official familiar with these talks said the two sides were also paying millions of rupees raised from consumers to lawyers while mutually negotiating a deal. Interestingly, the oil industry — led by the Oil and Companies Advisory Committee (OCAC) — has now come up with a demand that all deregulated businesses of the oil industry should be exempt from fee and duties and instead a fixed fee should be charged to all refineries and marketing companies irrespective of their size and sales.
Declining workers remittances may affect consumption and investments, said a research report issued by the State Bank of Pakistan (SBP) on Tuesday. Our results indicate that a negative shock to remittances has a negative effect on consumption, investment, labour demand, demand for imported goods, aggregate output, current account balance as well as the exchange rate, it said. Understandably, this poses a significant question to economic managers as to how well-prepared the economy is to cope with in case the exogenous shock is significant, said the report.
The National Assembly Standing Committee on Housing and Works on Tuesday approved Rs12.34 billion for 149 housing schemes to be completed under the Public Sector Development Programme 2017-18. The Ministry of Housing and Works proposed 179 projects at a cost of Rs17.2bn for the next fiscal year, but the committee headed by Haji Muhammad Akram Ansari directed exclusion of 46 projects amounting to Rs4.8bn. The Pakistan Public Works Department (Pak-PWD) will execute the proposed schemes. The committee was of the view that 46 excluded project were unnecessary and should be taken up after necessary need assessment and completion of the ongoing projects.

The Bench Mark KSE100 Index have bounced back after expanding its last 50% corretion to its 100% expansion and getting support from crossover of two supportive trend lines.For current trading session Index may remain bullish on hourly chart and try to test its resistance at 49448 but all this would be possible if Index will open with a gap above 49105 as at that region its capped by a strong horizontal resistance. If Index will not be able to close above 49105 then it can start a new bearish rally to extend its previous low. Market trend would be changed once it will be able to close above 49448 or below 48623. Untill that reamining sideways would be recommended.