PSX Daily Market Review - 28 March 2017

The Bench Mark KSE100 Index Opened at 49048.05, posted a day high of 49049.43 and a day low of 48633.26 during last trading session whereas session suspended at 48680.16  with net change of -290.89 points and net trading volume of 87.15 million shares. Daily trading volume of KSE100 listed companies dropped by 37.34 million shares or 30% on DoD basis.
Foreign Investors remained in net buying position of 11.27 million shares but net value of Foreign inflow dropped by 3.7 million US Dollars. Categorically Foreign Individuals and Corporate Investors remained in net buying position of 0.03 and 12.38 million shares but Overseas Pakistanis remained in net selling position of 1.14 million shares. While on the other side Local Individuals, Banks and Mutual Funds remained in net buying position of 15.75, 0.84 and 4.37 million shares respectively but Local Companies and Brokers remained in net selling position of 5.62 and 30.98 million shares.

Asian stocks advanced on Tuesday after Wall Street steadied and the dollar bounced from a four-month-low, as anxiety over Donald Trump setback on healthcare reform gave way to tentative hopes for the U.S. President planned stimulus policies. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.6 percent. Japan Nikkei .N225 jumped 1 percent, its biggest one-day gain in more than two weeks, while Australian stocks were up 1.1 percent. South Korean stocks .KS11 climbed 0.3 percent after data showed the domestic economy grew at a slightly faster pace than initially thought in the fourth quarter of 2016, supported by strong construction activity. Hong Kong main Hang Seng .HSI added 0.6 percent. Chinese market was one of the region under performers, with the CSI 300 .CSI300 index about 0.2 percent lower and the Shanghai Composite .SSEC down 0.4 percent. Overnight, the S&P 500 .SPX and the Dow Jones Industrial Average .DJI closed lower but had narrowed their losses from earlier in the session, when both hit near-six-week lows. The Nasdaq .IXIC ended higher.
Pakistan and the International Monetary Fund (IMF) will start Article 4 consultations in Dubai from today (Tuesday) and Islamabad will give a detailed briefing on the economic situation in the country to the Fund. The talks will continue from March 28 to April 5 in Dubai. IMF officials had refused to visit Pakistan for talks due to the law and order situation in the country. However, later, both sides agreed to hold discussions in Dubai, as happened in last three years when Pakistan was under extended fund facility program.
Minister of State for Water and Power Abid Sher Ali has said that the 1,223MW Balloki power project will be fully functional by early next year. While talking to journalists during his visit to Balloki power project near Chunian, he said work on several power projects is being underway at a fast pace to eliminate load shedding by 2018. He said that new power plants will provide affordable electricity to consumers and industrial sectors, which will boost economic activities in the country. The minister said that load management will be done only in those areas, where bills are not paid. He said a total of 3,800MW new electricity has been generated by the present government since June 2013 and further 10,000MW will be added to the national grid by next year.
Saudi Arabia on Monday cut taxes on oil companies in a major move that could attract investments in its energy giant Aramco, expected to be offered to investors in 2018. King Salman decreed a new set of income tax rates on oil companies working in the kingdom, ranging from 50 per cent to 85pc depending on the firms’ investments, after it was 85pc across the board. The royal decree published on Monday said companies investing more that 375 billion riyals ($100bn) will be subject to a 50pc tax rate. “Saudi Aramco tax rate is reduced from 85pc to 50pc, bringing it in line with international benchmarks,” the government-owned oil giant said on its Twitter account following the decree.
The federal government on Monday suffered a setback when the Islamabad High Court (IHC) set aside a notification placing five regulatory bodies under their line ministries. IHC Justice Athar Min­allah set aside the government notification placing the Oil and Gas Regu­latory Authority (Ogra), National Electric Power Regulatory Authority (Nepra), Pakistan Telecom­munication Authority (PTA), Frequency Allocation Board (FAB) and Public Procurement Regu­latory Authority (PPRA) under the control of the relevant ministries. The notification was issued by the Pakistan Muslim League-Nawaz government on Dec 19, 2016.

PNSC, SHEL, TRG  and STCL can lead the market in the positive direction.

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