PSX Daily Market Review - 28th Nov 2019

Trading volume at PSX floor dropped by 260.28 million shares or 53.26% on DoD basis, whereas the benchmark KSE100 index opened at 37,795.05, posted a day high of 38,122.72 and a day low of 37,671.63 points during last trading session while session suspended at 38,122.72 points with net change of 327.67 points and net trading volume of 140.17 million shares. Daily trading volume of KSE100 listed companies dropped by 194.01 million shares or 58.06% on DoD basis.
Foreign Investors remained in net buying positions of 2.69 million shares but net value of Foreign Inflow dropped by 0.30 million US Dollars. Categorically, Foreign Individual and Foreign Corporate remained in net selling positions of 0.05 and 1.61 million shares but Overseas Pakistanis Investors remained in net buying positions of 4.35 million shares. While on the other side Local Individuals, Banks and Brokers remained in net selling positions of 3.81, 3.72 and 2.88 million shares but Local Companies, NBFCs, Mutual Fund and Insurance Companies remained in net buying positions of 4.64, 0.12, 0.55 and 0.76 million shares respectively.

Asian shares waver as Hong Kong tensions spoil festive mood
Asian share markets wobbled on Thursday as concerns that tensions over Hong Kong may stymie a U.S.-China trade deal cast a pall over Thanksgiving cheer from positive U.S. economic data. U.S. President Donald Trump on Wednesday signed into law legislation backing pro-democracy protesters in Hong Kong. China’s Foreign Ministry promptly warned of unspecified “firm counter measures” in response. That put a lid on a week of gains for MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS. The benchmark fell almost 0.1%. Japan's Nikkei .N225, Hong Kong's Hang Seng .HSI and Shanghai blue chips .CSI200 flitted in and out of positive territory, as momentum ebbed. E-Mini futures for the S&P 500 ESc1 fell 0.3%, while EUROSTOXX 50 futures STXEc1 fell 0.1%. The news was shrugged off in the Antipodes, though, with Australia's S&P/ASX 200 and New Zealand's NZ50 .NZ50 following Wall Street's march to record highs.
US sending 15 trade delegations to Pakistan next year: Wells
The United States plans to send 15 trade delegations to Pakistan next year to explore possibilities for expanding trade with the country, says Assistant Secretary of State Alice Wells. The information is included in a paper Ms Wells read at a Washington think-tank, Wilson Centre, last week, which focused heavily on the China-Pakistan Economic Corridor (CPEC), but it also included various suggestions for expanding US-Pakistan trade ties. The paper, now posted at the US State Department’s official site, says that the US Commerce Department has “already stepped up its activity in Pakistan with 15 trade delegations planned for the next year”. And once the new expanded Deve­lopment Finance Corporation (DFC) is up and running, “Pakistan is going to be a country of great interest”.
More incentives soon to boost remittances
Highlig­hting the importance of foreign remittances in economy, Prime Minister Imran Khan on Wednesday directed delivery of full amounts of remittances to the families of overseas Pakistanis. The prime minister directed every possible measure to facilitate the overseas Pakistanis, calling them "an asset for the country". PM Khan was presiding over a meeting of the his economic team during which he was presented a proposed incentives package for remittances sent by overseas Pakistanis via legal channels. Under the proposed package, banks and exchange companies would be offered special incentives for the promotion of foreign remittances.
High interest rates hurting economy: FPCCI
Federation of Pakistan Chambers of Commerce and Industry President Daroo Khan Achakzai on Wednes­day showed serious concerns over the declining private sector credit —down by Rs4.1 billion in the first four months of current fiscal year. “The declining demand of private sector credit is due to high cost of borrowing and slow economic activity which will subsequently affect economic growth and unemployment,” he deplored. While commenting on the monetary policy, he said the State Bank of Pakistan (SBP) continuously adopted contractionary monetary policy and kept the interest rate at 13.25 per cent while on the other side the government had reduced profit rates on the National Savings Schemes. The declining profit rates on deposits and high borrowing costs benefited the banks in term of high spread.
ECC rejects further increase in wheat support price
The Economic Coordination Committee (ECC) of the Cabinet on Wednesday declined proposals from its three members to further increase wheat support price and continued financial assistance to defunct Telephone Industries of Pakistan (TIP). The meeting presided over by Finance Adviser Dr Abdul Hafeez Shaikh cleared a series of amendments to streamline petroleum exploration and production activities as part of the Ease of Doing Business effort. It also approved a proposal of the Federal Board of Revenue (FBR) for technical supplementary grant to the tune of Rs30 billion for redemption of equivalent bonds and cheque issued by the FBR Refund Settlement Company Ltd for payment of sales tax refunds. Informed sources said the newly appointed National Food Security & Research Minister Makhdum Khusro Bakhtyar came up with a proposal to further increase wheat support price to Rs1,400 per 40 kg.