PSX Daily Market Review - 25th March 2020

Trading volume at PSX floor dropped by 294.4 million shares or 74.88% on DoD basis to settle at 98.76 million shares. While trading volume of KSE100 listed companies also settled at 80.18 million shares with net change of -53.42 million shares or 39.98 percent. The Benchmark KSE100 index opened at 28,850.93pts with a negative gap of -1,816.48pts during last trading session and trading was suspended at 28,840.71pts with net change of -1,826.70pts for two hours in next five minutes after KSE30 hit its first circuit breaker. After restoration of trading index moved towards its day low at 28,510.45pts with net change of -2,156.96pts. While session suspended at 28,564.83pts with net change of -2,102.58pts.
Foreign Investors remained in net selling positions of 6.66 million shares and net value of Foreign Inflow dropped by 1.14 million US Dollars. Categorically, Foreign Individual, Corporate and Overseas Pakistani investors remained in net selling positions of 0.1, 4.67 and 1.86 million shares respectively. While on the other side Local Individuals, NBFC, Brokers and Insurance Companies remained in net buying positions of 9.14, 0.43, 6.42 and 1.01 million shares but Local Companies, Banks and Mutual Funds remained in net selling positions of 6.67, 0.16 ad 3.91 million shares respectively.

Fed's stimulus eases global market fears, gets cash flowing
Investors across a broad range of asset markets breathed a sigh of relief Tuesday, a day after the Federal Reserve rolled out unprecedented measures aimed at boosting liquidity and bolstering investor confidence in the face of a spreading coronavirus pandemic. As equities ripped higher around the world, a string of investment-grade companies tapped a better-functioning debt market for much-needed cash after the Fed’s measures helped ease a logjam that had frozen credit markets. The rate at which companies could borrow high-grade, short-term loans mostly decreased, while rates for lower-grade paper continued to increase at some maturities and decreased modestly at others, according to Fed data.
Regulator simplifies registration of insurance products
The Securities and Exchange Commission of Pakistan (SECP) has simplified the submission requirements for registration of a new life insurance product or registering any amendments in an existing product with the view to promote ease of doing business. Most of the products submitted to the SECP by life insurance companies and family takaful operators have standardised features, terms and conditions, which are similar to their existing products. With the aim to facilitate the insurance sector, SECP issued S.R.O. 234(I)/2020 to simplify the submission requirements for standardised products.
Shutdowns stoke debate over what’s an ‘essential industry’
Shortly after British Prime Minister Boris Johnson ordered the closure of non-essential retailers on Monday to curb the spread of coronavirus, the parent company of Sports Direct wrote to its staff to let them know: the next day would be business as usual. Its argument — that selling sport and fitness equipment was vital during a national shutdown — was promptly rebuffed by the government, and the plan to keep its stores open was ditched. The brief spat underlines the dilemma for governments defining what are “essential industries” as they try to flatten the curve of infections to save lives while keeping their economies from falling off a cliff.
ICCI for reducing policy interest rate to 5pc
Islamabad Chamber of Commerce and Industry (ICCI) has urged the government to reduce policy interest rate to 5 percent in order to save businesses from the negative impact of coronavirus. In a statement, President ICCI, Muhammad Ahmed Waheed said that due to spread of coronavirus, all shopping malls and business centers are being closed down in major cities due to which business activities are suffering badly. He said that the best option for the government to provide relief to businesses is to cut interest rate to 5 percent to cope with the situation emerging after coronavirus. Waheed said that imported raw material of many industrial units of millions of rupees is stuck up at Karachi port as transport is not available due to lock down.
Govt disburses 100pc funds allocated for ML-1 Railway project
The govt has disbursed 100 percent development funds of Rs1.8 billion allocated for preliminary design for up-gradation and rehabilitation of main line (ML-1) and establishment of dry port near Havelian under the China Pakistan Economic Corridor (CPEC). Under the federal government’s Public Sector Development Programme (PSDP) 2019-20, the project was allocated funds of Rs1.8 billion which had been disbursed now. The total cost of the project is Rs10.64 billion and an amount of Rs5.172 had already been spent upto June 30 2019, according to a latest data released by the Planning Ministry. Overall, an amount of Rs10.7 billion has been released for various development projects of railway division out of total allocation of Rs13.47 billion.