PSX Daily Market Review - 2nd Oct 2019

Trading volume at PSX floor increased by 14.68 million shares or 8.84% on DoD basis, whereas the benchmark KSE100 index opened at 32,084.66, posted a day high of 32,290.39 and a day low of 32,002.11 points during last trading session while session suspended at 32,254.32 points with net change of 175.47 points and net trading volume of 132.15 million shares. Daily trading volume of KSE100 listed companies dropped by 10.66 million shares or 7.47% on DoD basis.
Foreign Investors remained in net selling positions of 3.63 million shares but net value of Foreign Inflow dropped by 0.48 million US Dollars. Categorically, Foreign Individual & Corporate remained in net selling positions of 0.24 and 3.57 million shares but Overseas Pakistanis investors remained in net buying positions of 0.18 million shares. While on the other side Local Individuals, Banks and Insurance Companies remained in net selling positions of 2.66, 6.82 and 1.86 million shares respectively but Local Companies, NBFCs, Mutual Fund and Brokers remained in net buying positions of 2.88, 0.06, 7.45 and 4.44 million shares respectively.

Global shares steady, investors pin hopes on U.S.-China talks
Global share prices ticked up on Tuesday as some investors clung to hopes that China and the United States could work towards reaching a deal on trade and other issues in the fourth quarter.Japan's Nikkei .N225 rose 0.6% while MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.11%. Chinese markets will be shut for a week from Tuesday to mark 70 years since the founding of the People’s Republic of China. U.S. stock futures ESc1 rose 0.16% in Asia, a day after the S&P 500 .SPX gained 0.50%. Technology sectors led the gains on Monday while U.S.-listed shares of Chinese firms bounced up a tad, after big balls on Friday, with Alibaba (BABA.N) up 0.75% and Baidu (BIDU.O) gaining 1.53%. During the July-September quarter, the S&P500 gained 1.21%.
Gwadar Port opens for transit trade
Gwadar Port has been opened for transit trade and the first ship in this regard is set to arrive next week, a sub-committee of the Senate Standing Committee on Maritime Affairs was informed on Tuesday. Officials of the Ministry of Maritime Affairs briefed the sub-committee regarding transit trade and transshipment. The body was informed that the Afghan Trade Transit (ATT) Module required some changes that have been applied and after initial testing it is ready for application. The senate body was informed that the first ATT shipment would arrive on Oct 8, next week at Gwadar port, which will gradually increase. Convener of the sub-committee Senator Kauda Babar, who hails from Gwadar, pointed out towards the lacunas in planning and development of the area.
Cabinet approves first-ever e-commerce policy framework
With a delay of more than three years, the Federal Cabinet on Tuesday approved the much-awaited first-ever e-commerce policy framework. While approving the framework at the cabinet meeting, Prime Minister Imran Khan remarked that e-commerce will add synergy to Pakistan’s Kamyab Jawan Prog­ramme and One-Woman, One-Bank Account initiative, while proving to be a driver of youth empowerment and employment generation through digital connectivity. The current size of the local e-commerce industry seems to have no ballpark number. The only barometer to quantify is from sales proceeds. As per statistics, e-commerce sales in 2017 were Rs20.7bn, which grew by 93.7pc to Rs40.1bn in 2018. Compared to this, the e-commerce sales in India is $33bn, while in China it stood at $1,526bn. The e-commerce sales are very high in developed countries.
Suzuki raises Alto, bike prices
The Pak Suzuki Motor Company Limited (PSMCL) on Tuesday announced second price jump in two variants of Alto660cc by Rs70,000-85,000 from Oct 1 followed by price hike of Rs2,000-6,000 in two-wheelers. Two-time price increase in Alto suggests the PSMCL is now fully cashing in on its burgeoning demand after losing sales on hot selling WagonR and other models. Suzuki began Alto production in June announcing VXR and Alto AGS models at a price of Rs1.101 million and Rs1.295m respectively. The company on Aug 1 came out with a price hike of Rs137,000 and Rs138,000. VXR and AGS models now sell at Rs1.308m and Rs1.518m. The company, in a circular to its authorised dealers, did not attribute any reason for the price hike. However, it said the price hike would not be for the old pending orders, which have been booked with partial advance payment, and/or for those orders in which customers failed to deposit their balance payments within the due requested time.
FBR chief for only 12.5pc GST on basic food commodities
Federal Board of Revenue (FBR) chairman Shabbar Zaidi on Tuesday said that there should be only 12.5 percent general sales tax (GST) on basic food commodities instead of standard 17 percent. He said that former finance minister Ishaq Dar had increased the GST to 17 percent on food commodities as it was 12.5 percent before the PML-N government. He was of the view that GST should be only 12.5 percent on food commodities. He made these remarks in a meeting of sub-committee of the National Assembly standing committee on finance and revenue. The Committee meeting was held under the convenership of MNA Dr Aisha Ghous Pasha. MNA Ms Hina Rabbani Khar and MNA Dr Ramesh Kumar Vankwani also attended the meeting as committee members.