PSX Daily Market Review - 24 March 2017

The Bench Mark KSE100 Index Opened at 49057.57, posted a day high of 49147.32 and a day low of 48951.06 during last trading session whereas the session suspended at 49016.79 with a net change of -3.42 points and net trading volume of 131.69 million shares.Daily trading volume of KSE100 listed companies increased by 37.74 million shares or 40.16% on DoD basis.
Foreign Investors remained in net buying position of 7.25 million shares and net value of Foreign Inflow increased by 3.81 million US Dollars. Categorically Foreign Corporate and Overseas Pakistani Investors remained in net buying position of 4.81 and 2.46 million shares but Foreign Individuals remained in net selling position of 11000 shares. While on the other side Local Individuals, Banks and Mutual Funds remained in net selling position of 11.64, 0.35 and 4.10 million shares respectively but Local Companies and Brokers remained in net buying position of 2.09 and 5.68 million shares.

The dollar recouped a little lost ground on Friday amid signs a delayed vote on President Donald Trump healthcare bill would go ahead later in the day, though it remained unclear whether it would pass. Investors regard the vote as test for the Trump presidency that could show whether it can muster the backing needed to push through fiscal measures central to its economic agenda. Asian share markets and S&P 500 futures ESc1 edged higher as investors dipped a toe back into risk trades after a week of wild swings in sentiment. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.2 percent, but was still a fraction lower for the week. Australia bounced back from a tough few days to be up 0.9 percent on the day . Japan Nikkei .N225 added 0.9 percent, encouraged by a slight softening in the yen. A Reuters poll out on Friday also showed confidence among Japanese manufacturers rose for a seventh straight month to a three-year high.
Attorney General Ashtar Ausaf on Thursday claimed that the International Centre for Settlement of Investment Disputes (ICSID) — a World Bank-funded tribunal — had accepted Pakistan evidence against the international firm over the terminated Reko Diq mining contract. However, he contended that ICSID had declined Pakistan’s request to dismiss financial claims by the Tethyan Copper Company (TCC) over the termination of a multimillion dollar mining lease in Balochistan, adding that the case would therefore proceed. The order by the tribunal of March 20 states that the tribunal has admitted Pakistan evidence on the record, Mr Ausaf explained in an announcement issued by the AG office, admitting that the tribunal had not dismissed the TCC claims.
Pakistan food and oil import bill rose nearly 18 per cent year-on-year to $10.652 billion in the first eight months of the current fiscal year despite a decline in global prices of crude and grains. The share of these products in Pakistan total import bill in July-Feb was 32pc, which is putting more pressure on the country’s balance of payments. The trade deficit is widening as the overall import bill of the country has been on the rise since the start of the current fiscal year. Official figures compiled by the Pakistan Bureau of Statistics (PBS) show that petroleum imports increased 20.97pc year-on-year to $6.682bn in July-Feb.
While the Planning Commission has opposed the leasing option of an LNG terminal at Gwadar, preferring an outright purchase of the facility for Rs41 billion, the Central Development Working Party (CDWP) led by Planning and Development Minister Ahsan Iqbal has set aside the commission’s objections, giving the petroleum ministry a go-ahead for leasing the Floating Storage and Re-gasification Unit (FSRU) for 25 years at an estimated cost of $120,000 per day. The Executive Committee of the National Economic Council (Ecnec), which will take a final decision on the matter, is expected to take up the project along with the Planning Commission’s observations in its next meeting.
Pakistan major export-oriented sectors are still showing negative growth despite they have received zero-rating facility from the government for the ongoing financial year. Earlier, the five export-oriented sectors including textile, leather, carpets, surgical and sports sectors had demanded zero-rating facility from the government to enhance the country’s exports. They were of the view that exports are declining due to the non-availability of zero-rating. The government had accepted their proposal and announced zero-rating for the exports oriented sectors of the country. However, exports from these sectors remained negative during the year 2016-17.

PIAA, SMBL, ANL and DSL can lead the market in the positive direction.

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