PSX Daily Market Review - 25th April 2017

The Benchmark KSE100 Index opened at 49708.65, posted a day high of 50204.38 and a day low of 49588.92 during the last trading session. Whereas, the session suspended at 50111.67 with a net change of 403.02 points and a net trading volume of 135.67 million shares. Daily trading volume of KSE100 listed companies dropped by 23.4 million shares or 14.71%, DoD basis.
Foreign Investors remained in a net selling position of 2.4 million shares but net value of Foreign Inflow increased by 4.2 million US Dollars. Categorically, Foreign Individuals and Corporate Investors remained in net selling positions of 8512 shares and 3.14 million shares, respectively.  Whereas, Overseas Pakistani investors remained in a net buying position of 0.75 million shares.  On the other hand Local Individuals, Companies and Banks remained in net selling positions of 1.57, 4.19 and 1.59 million shares, respectively. NBFCs and Brokers remained in net buying positions of 0.67 and 4.26 million shares, respectively.

Asian equities were steady on Tuesday and the euro retained gains as markets euphoria over a centrist victory in the first round of the French presidential election subsided, though near-term investor sentiment remains positive. The risk rally has kept safe-haven assets, including the yen and gold came, under pressure, while the Canadian dollar fell after the U.S. announced new duties averaging 20 percent on Canadian softwood lumber imports. The Canadian currency CAD= tumbled to a four-month low as the U.S. dollar strengthened 0.35 percent to C$1.3543. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was little changed early on Tuesday. Japanese Nikkei .N225 added 0.3 percent. South Korean KOSPI .KS11 advanced 0.2 percent. Australia is closed for a holiday. Polls show Emmanuel Macron defeating anti-euro nationalist Marine Le Pen by as much as 30 percentage points in the second round of the French presidential election in two weeks.
Pakistan top tax team has decided to establish dedicated anti-money laundering (AML) units to investigate and prosecute growing offences of tax evasion and fraud. The announcement came after a meeting headed by Federal Board of Revenue (FBR) Chairman Dr Muhammad Irshad on Monday. The units will fall under the administrative purview of the Intelligence and Investigation (I&I) department of Inland Revenue (IR). The AML units were given a target of recovering around Rs 8-10 billion in May and June. The units will be functional by the end of April
The Util­ity Stores Corporation (USC) launched the second phase of Ramadan Relief Package on Monday by reducing the prices of more than 450 items by up to 10 per cent. Earlier in the month, the USC reduced the prices of more than 700 items. How­ever, the prices of key edible items including sugar, gram flour, etc would be reduced just ahead of Ramadan. Currently, sugar is selling at Rs62 per kg both at the Utility Stores and in the open market. USC Spokesman Wajid Ali Khan said the prices of 450 items were reduced after negotiations with suppliers.
Textile and clothing exports rose 6.2 per cent year-on-year to $1.064 billion in March, mainly driven by value-added products such as garments, the Pakistan Bureau of Statistics said on Monday. The increase in export proceeds was also evident in rupee terms. The data for the month shows that exports of value-added products grew during the month, both in terms of value and quantity. Product-wise details show that exports of ready made garments rose 19.5pc while that of knitwear grew 5.4pc in March. Exports of bed wear edged up by 5.4pc while those of towels 15.8pc during the month.
The State Bank of Pakistan (SBP) on Monday changed banks exposure limits through amendments to prudential regulations, but stopped short of setting a threshold for investments in government papers. “The aggregate amount of large exposures of a bank or development finance institution (DFI) will not, at any point in time, exceed 50 per cent of its total fund-based and non-fund-based exposure in finance facilities and investments, excluding investments in government securities and loans secured against government guarantees,” the SBP said in a circular. “Large exposure will not be applicable to investments in government securities and loans secured against government guarantees,” it said.

AKZO, HCAR, NCL and PSMC can lead the market in the positive direction.

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