PSX Daily Market Review - 27th March 2020

Trading volume at PSX floor increased by 41.82 million shares or 28.87% on DoD basis, whereas the benchmark KSE100 index opened at 27,228.80, posted a day high of 28,191.33 and a day low of 27,046.71 points during last trading session while session suspended at 27,267.20 points with net change of 38.40 points and net trading volume of 157.44 million shares. Daily trading volume of KSE100 listed companies also increased by 33.77 million shares or 27.04% on DoD basis.
Foreign Investors remained in net selling positions of 11.90 million shares and value of Foreign Inflow dropped by 5.13 million US Dollars. Categorically, Foreign Individuals and remained in net selling positions of 0.31 million shares respectively but Overseas Pakistani and Foreign Corporate remained in net selling positions of 9.99 and 2.21 million shares respectively. While on the other side Local Individuals, NBFCs, Mutual Fund, Brokers and Insurance Companies remained in net long positions of 6.51, 0.015, 4.44, 5.98 and 7.04 million shares but Local Companies and Banks remained in net selling positions of 11.30 and 2.31 million shares respectively.

Asia shares rise on more stimulus hopes but dollar loses steam
Asian stocks rose on Friday as investors wagered policymakers will roll out more stimulus measures to combat the coronavirus pandemic after U.S. unemployment filings surged to a record. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.2%. Australian shares gave up gains to fall 1.09%, but Japan’s Nikkei rose 1.44%. E-Mini futures for the S&P 500 reversed course and fell 0.95% in Asia following three consecutive days of gains in the S&P 500 on Wall Street. The dollar nursed losses against major currencies as central banks’ steps to solve a dollar shortage in funding markets started to gain traction.
Exporters decry delays in permission to reopen
Exporters and manufacturers on Thursday blamed Sindh government for causing unnecessary delays in allowing export-oriented sectors to operate production units during the lockdown in order to clear pending shipments. The provincial government had asked textile and leather garments exporters to fill a proforma seeking details on export orders, staff required to meet production targets, arrangement of health, safety and environment, social distancing mechanism for workers during the lockdown and arrangements for screening of workers, testing and subsequent isolation and reporting arrangements of suspected workers, available export stock ready to ship and its transportation arrangements.
Dollar gains Rs4.5 in interbank, reaches record high of Rs167
The United States dollar continued its climb against the rupee on Thursday, closing at an all-time high of Rs167 in the interbank market, according to rates provided by the Exchange Companies Association of Pakistan. Compared to the opening value of Rs162.5, the dollar rose by Rs4.5, which translates into an increase of 2.77 per cent. Similarly, the rates provided by the State Bank of Pakistan’s ready counter showed the greenback at Rs166.1, up from the opening value of Rs161.6 – again, a jump of Rs4.5. “Foreigners are unloading their holdings in the T-bills prematurely due to the fear caused by the coronavirus, which has pushed up the demand for dollars in the interbank. Once that subsides, the situation will ease,” said Forex Association of Pakistan President Malik Bostan.
Japan to provide $236,230 for four social development projects
As a part of efforts to promote human security, the government of Japan has decided to provide financial assistance of $236,230 for four social development projects in education and rural electrification in the Khyber Pakhtunkhwa and Punjab provinces. The grants will be provided to four national NGOs, Learning Awareness & Motivation Programme (LAMP) in Khyber district, Friends Welfare Association (FWA) in Torghar district, Hana Development Council (HDC) in Mandi Bahauddin district and Actions for Human Advancement (AHAT) in Kasur district.
Ecnec approves development projects worth Rs97.64 billion
The Executive Committee of the National Economic Council (ECNEC) on Thursday has approved development projects costing Rs97.64 billion. ECNEC chaired by Adviser to the Prime Minister on Finance and Revenue Abdul Hafeez Shaikh has approved various development projects. ECNEC approved the “Toiwar/ Batozai Storage Dam Project District Killa Saifullah, Balochistan at the 2nd revised cost of Rs4905.667 million. Irrigation Department Government of Balochistan will execute the project. The project will provide storage of 95000 acre feet of water and 16750 acres of land will be brought under cultivation. Prevention from flood damages and improvement of socio economic conditions are other benefits of the project.