PSX Daily Market Review - 29 March 2017

The Bench Mark KSE100 Index opened at 48639.16, posted a day high of 48661.49 and a day low of 48490.39 during last trading session whereas session suspended at 48523.41 with a net change of -156.75 points and net trading volume of 77.48 million shares. Daily trading volume of KSE100 listed companies dropped by 9.66 million shares or 11.09% on DoD basis.
Foreign Investors remained in net selling position of 1.75 million shares and net value of Foreign inflow dropped by 3.28 million US Dollars. Categorically Foreign Corporate and Overseas Pakistani Investors remained in net selling position of 1.39 and 0.36 million shares respectively. While on the other side Local Companies, Mutual Funds and Brokers remained in net buying position of 2.56, 0.28 and 19.88 million shares but Local Individuals, Banks and NBFCs remained in net selling position of 0.048, 16.67 and 3.79 million shares respectively.

Asian shares inched ahead on Wednesday while the dollar and commodities held gains as investors shook off disappointment about U.S. President Donald Trump failed healthcare bill and focused on an improving outlook for global growth. The good cheer did not extend to the pound which was on the skids as the British government sent a letter to Brussels formally starting the country exit from the European Union. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.2 percent and back toward recent 21-month peaks. Australian main index climbed 0.8 percent to its highest since mid-2015. Japanese Nikkei .N225 added 0.1 percent, having climbed over 1 percent the previous day. The Dow snapped an eight-day losing streak, its longest run of losses since 2011, in part as a survey showed consumer confidence surged to a more than 16-year high. Economic fundamentals still remain exceedingly sound here in 2017 and you do not need Trump pro-growth fiscal agenda for this to be one of the best years for growth since the recovery started, argued Tom Porcelli, chief U.S. economist at RBC Capital Markets.
The Economic Coordination Committee of the Cabinet (ECC) on Tuesday approved export of 0.2 million metric tonnes of sugar and one month salary for employees of the Pakistan Steel Mills. The ECC, with Finance Minister Ishaq Dar in the chair, approved a proposal of the Ministry of Commerce about further export of 0.200 MMT of sugar (without any subsidy). The export of sugar would be made within 60 days after approval of export quota by the State Bank of Pakistan or by 31st of May 2017, whichever is earlier. It was further decided that only those mills would be allowed to export that had cleared outstanding dues of farmers from the last season and had crushed at optimum capacity. It may be recalled that ECC in December 2016 had allowed export of 0.225 MMT sugar till 31st March 2017 with the condition that the Inter-Ministerial Committee, constituted vide directive by Prime Ministery Office (dated 25.11.15) under chairmanship of the Minister for Commerce would recommend to ECC stoppage of further export if domestic price of sugar was negatively impacted. The Pakistan Sugar Mills Association (PSMA) made subsequent requests to extend the export period to 31st May 2017 and also sought increase in export quantity.
SBP will issue Rs 50 Abdul Sattar Edhi Commemorative Coin from March 31st. Keeping in view the meritorious services rendered to the humanity in general and Pakistanis in particular, the Federal govt had decided to issue Commemorative Coin in memory of late Abdul Sattar Edhi in the Cabinet meeting held on Friday, July 15, 2016. Subsequently, the SBP was authorised to issue Rs 50 Commemorative Coin in recognition of his services to humanity. These coins will be issued through the exchange counters of all the field offices of SBP Banking Services Corporation from March 31st, 2017.
The Securities and Exchange Commission of Pakistan (SECP) has issued authorization to Eman Management Pvt Ltd (EMPL) to float Orient Rental Modaraba, having capital of Rs 500 million. This is the second successive authorization by the SECP in the current month to float a modaraba, which shows the growing interest of prospective investors in Islamic finance especially in the modaraba sector. The new modaraba will engage in providing rental equipment solutions, operations and maintenance services to its customers on ijarah basis. The equipment selected for rental will include a fleet of power generation equipment, commercial vehicles, material handling equipment and construction machinery. All the business transactions of the Orient Rental Modaraba will be in conformity with Shari’ah and based on the principles of risk and profit sharing.
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.

MCB, FRSM, TRG and STCL can lead the market in the positive direction.

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