PSX Daily Market Review - 27 March 2017

The Bench Mark KSE100 Index Opened at 49080.19, posted a day high of 49138.40 and a day low of 48928.18 during last trading session whereas the session suspended at 48971.05 with a net change of -45.74 points and net trading volume of 124.49 million shares. Daily trading volume of KSE100 listed companies dropped by 7.2 million shares or 5.47% on DoD basis.
Foreign Investors remained in net selling position of 10.49 million shares but net value of Foreign inflow increased by 0.71 million shares. Categorically Foreign Individual and Corporate investors remained in net selling position of 0.019 and 11.32 million shares but Overseas Pakistanis remained in net buying positions of .85 million shares. While on the other side Local Individuals, Companies and Brokers remained in net buying position of 10.09, 6.81 and 12.38 million shares respectively but Local Banks, NBFCs remained in net selling position of 12.76, 0.17 and Mutual Funds remained in net buying position of 1.58 million shares respectively.

U.S. equity index futures fell to a six-week low on Sunday in a sign Wall Street would start the week defensively after Republicans pulled legislation to overhaul the U.S. healthcare system in a stunning setback for President Donald Trump. S&P 500 e-mini futures ESv1 were down over 0.65 percent, shortly after electronic trading resumed on Sunday evening. Volume of more than 17,000 contracts in the first 30 minutes marked the heaviest trading activity to kick off a week since Trump took office. That was roughly 2-1/2 times the average of fewer than 7,000 contracts in early Sunday evening trading since the inauguration. U.S. Treasury futures were up 0.18 percent Sunday, indicating that yields would start the week lower when bonds start trading in Asia later. Markets were unnerved last week by Trump inability to get enough support for legislation to reform the U.S. healthcare system, a major 2016 election campaign promise of the president and his allies. Investors had worried that the difficulties with the health bill could delay other legislation such as tax reform. Trump said he would now turn his attention to getting "big tax cuts" through Congress.
Pakistan International Airlines (PIA) CEO Bernd Hildenbrand has said that airline has saved millions of rupees during one year by refurbishing Ground Support Equipment (GSE) and passenger transport vehicles. He expressed these remarks while talking to senior PIA management after inspection visit of Ramp Services and Food Services divisions. The PIA CEO said that during the last one year PIA has added 24 new GSE which include AC vans, baggage belts, ambu-lifters and hi-lifters, while four Ground Power Units are on their way. In addition, renovation of old equipment is also being done using airline indigenous resources. Unfortunately, PIA current ground equipment is mostly over 25-year-old and no investment was done for many years, he said. That is why, he said, it is very important that special care should be given to existing equipment so that it could serve the airline well in the months and years to come.
OPEC and non-OPEC producers said Sunday at a meeting in Kuwait they were looking into extending an output cuts deal aimed at stabilizing the market, as compliance with the milestone pact increases. The cuts aim to reduce world oil supplies and boost prices that have slumped since mid-2014. The Joint Ministerial Monitoring Committee "expressed its satisfaction with the progress made towards full conformity with the voluntary production adjustments and encouraged all participating countries to press on towards 100 percent conformity," producers said after their day-long meeting. The committee, formed by OPEC and non-OPEC members to oversee compliance with the deal to reduce output reached last year, also studied the possibility of extending the cuts for another six-month period. It said its technical committee, in coordination with the OPEC secretariat, should "review the oil market conditions" and report back at a committee meeting next month.
Deposits and other accounts of all scheduled banks stood at Rs10,794.04bn after a 0.03pc decrease over the preceding week’s figure of Rs10,797.73bn, according to the weekly statement of position of all scheduled banks for the week ended March10, compared with last year’s corresponding figure of Rs9,446.92bn. The current week’s amount was higher by 14.26pc. Commercial banks’ deposits and other accounts stood at Rs10,721.55bn against the preceding week’s deposits of Rs10,726.66bn, showing a fall of 0.05pc. Deposits and other accounts of specialised banks stood at Rs72.48bn, higher by 2pc against the previous week’s figure of Rs71.07bn.
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.

PKGS, ATRL,CSAP and FFL can lead the market in the positive direction.

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