PSX Daily Market Review - 30 March 2017

The Bench Mark KSE100 Index Opened at 48523.41, posted a day high of 48909.10 and a day low of 48336.78 during last trading session, whereas session suspended at 48375.63 with a net change of -147.78 points and net trading volume of 93.65 million shares. Daily trading volume of KSE100 listed companies increased by 16.17 million shares or 20.86% on DoD basis.

Asian shares edged up to near their highest in two years on Thursday, while the dollar benefited from waning expectations that the European Central Bank was poised to end its easy policy. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was 0.2 percent higher in early trade, pushing against its loftiest levels since June 2015. Japanese Nikkei stock index .N225 was down 0.2 percent, while Australian shares firmed, helped by gains in oil prices. Strong energy shares had helped the U.S. S&P 500 .SPX end higher overnight. The dollar index, which tracks the U.S. currency against a basket of six major rivals, was steady on the day at 100.030 .DXY. It was lifted to a one-week high overnight as the euro slipped on concerns about the impact of Brexit as well as news that European Central Bank policymakers are keen to reassure investors that their easy-money policy is far from ending. The euro was down 0.1 percent at $1.0752, after Reuters reported ECB policymakers were wary of changing their policy message after tweaks this month upset investors and raised chances of a surge in borrowing costs.
Struggling to meet its budget deficit target of 3.8 per cent for the ongoing financial year, the cash-strapped government does not appear in a mood to pay back private power producers their bills (commonly known as ‘circular debt’) amounting to more than Rs250 billion — at least not anytime soon. The recent correspondence between power companies and the Private Power Infrastructure Board (PPIB) shows that the government is turning up heat on the independent power producers (IPPs) for demanding payment of their overdue bills. According to a letter sent to the 13 IPPs that had invoked sovereign guarantees on March 2 for the recovery of a portion of their long outstanding bills amounting to Rs48bn, the board has rejected their call. Besides, it has put them on a legal notice for running what it termed a false and malicious advertisement campaign against the government in newspapers.
Bahrain Minister for Commerce and Industry Zayed R Alzayani.Bahrain has invited Pakistan to conclude Free Trade Agreement (FTA) with Gulf Cooperation Council (GCC) for boosting trade. A high-level Bahrain’s delegation, led by Alzayani, met Commerce Minister Khurram Dastgir Khan here on Wednesday. Welcoming the visiting delegates, the minister said that Pakistan attaches immense importance to its relations with Bahrain and appreciated the participation of delegation in the Second Pakistan-Bahrain Business Opportunities Conference. The minister supported the idea of concluding a Free Trade Agreement with Gulf Cooperation Council (GCC), that comprise of six countries including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Dastgir directed the officials of the commerce ministry to send the text of framework agreement to GCC immediately.
In yet another significant development, the Pakistan Water and Power Development Authority (Wapda) has secured Rs144 billion for Dasu Hydropower Project by signing an agreement of local debt financing with a consortium of major local banks led by Habib Bank Limited (HBL). This is by far the biggest single loan agreement for any public sector entity in the history of Pakistan. The agreement signing ceremony was held here at Wapda House here on Wednesday. WAPDA Chairman Lt Gen (R) Muzammil Hussain, HBL President Nauman Dar, National Bank of Pakistan (NBP) President Saeed Ahmed Khan and representatives of other banks in the consortium signed the agreement on behalf of their organisations. Wapda Member (Finance), Member (Power) and senior officers of Wapda and the banks also attended the ceremony.
The All Pakistan Textile Mills Association (APTMA) leadership has warned of rapid de-industrialisation in Punjab due to the energy price disparity and liquidity crunch, saying that an immediate intervention of the government has become imperative to save exports and jobs. APTMA Central Chairman Aamir Fayyaz held a press conference after presiding over an emergent general body meeting at the APTMA Punjab office on Wednesday. Group leader Gohar Ejaz, Vice Chairman Ali Pervez and APTMA Punjab Chairman Syed Ali Ahsan were also present on the occasion. APTMA Chairman Aamir Fayyaz said the trade gap has touched the alarming level, which could only be dealt with strengthening the exports. He said the Punjab-based textile industry has been crippled due to high cost of doing business, particularly the energy cost, both domestically and regionally.

STCL, DSL,NML,JSCL and SHEL can lead the market in the positive direction.

^{To Open picture in original resolution right click image and then click open image in a new tab}