PSX Daily Market Review - 3rd Aug 2017

Foreign Investors remained in a net selling position of 1.15 million shares and the net value of Foreign Inflows dropped by 1.48 million US Dollars. Categorically, Foreign Corporate and overseas Pakistani investors remained in net selling positions of 0.28 and 0.87 million shares. While on the other side, Local Individuals and NBFCs remained in net buying positions of 12.77 and 1.32 million shares but Local Companies, Banks, Mutual Funds and Brokers remain in net selling positions of 6.54, 5.22, 6.04 and 5.19 million shares, respectively.

Asian shares slid on Thursday, led by falls in South Korean tech shares, as investors locked in recent gains after Wall Street Dow Jones Industrial Average broke the 22,000 barrier for the first time in its 121-year history. MSCI broadest index of Asia-Pacific shares outside Japan dropped 0.9 percent, with South Korean tech-heavy Kospi index on course to drop 1.8 percent, its biggest fall since November. "We havenot seen a major correction in tech shares so far this year so they may be hitting a speed bump," said Nobuhiko Kuramochi, chief strategist at Mizuho Securities.
The government will borrow Rs3.75 trillion from the banking system in August-October, the State Bank of Pakistan (SBP) reported on Wednesday. The government will borrow Rs3.45tr through market treasury bills (MTBs) and Rs300 billion through Pakistan Investment Bonds (PIBs) in the three-month period. The government, which depends largely on domestic and foreign borrowing, will raise Rs304.6bn in addition to the maturing amount of about Rs3.39tr during this period. The government has been borrowing heavily from the banking system for the last four years. This has put enormous pressure on banks liquidity.
The Direct­orate of Intelligence and Investigation, Inland Revenue, has lodged a case against a Karachi-based businessman for tax evasion of Rs576.564 million. A senior tax officer said that an FIR has been lodged against Usman Shahid under section 203 of Income Tax Ordinance read with section 3, 4 and 8 of the Anti-Money Laundering Act 2010. The case was filed in the court of Special Judge Customs, Taxation and Anti-smuggling, Karachi. The I&I Department has launched investigation against tax evaders across the country under the money laundering act. The tax evasion was worked out in a period of three years -- Rs17.219m in 2014, Rs80.823m in 2015 and Rs478.521m in 2016.
South Asia, long a backwater for energy markets, is emerging as a hotspot for liquefied natural gas (LNG), with Pakistan and Bangladesh set to join India as major consumers, helping to ease global oversupply that has dogged this market for years. Only India and Pakistan currently import LNG in South Asia, taking in a combined 25 million tonnes, or eight per cent of global demand last year. But with a fast-growing population, strong economic growth and soaring energy demand, more import projects are being developed, led by Pakistan and Bangladesh.
Members of the Senate Standing Committee on Finance had a divided opinion on Wednesday about the central bank’s decision to depreciate the rupee against the dollar on July 5. The committee received an in-camera briefing by the senior management of the State Bank of Pakistan (SBP) about the recent rupee depreciation. Sources said some senators considered the SBP’s decision justified while others believed otherwise.
Pakistan Sugar Mills Association has linked the sugarcane payments to growers to approval of sugar export with freight subsidy, as the mills are facing liquidity crunch. The sugar millers observed that cost of sugar produced at government notified rate of sugarcane at Rs.180/40 kg is very high and it is not viable to export sugar, keeping in view the high cost of production and depressed world market. They said if current situation prevails, it was feared, mills will not have the ability to procure sugarcane at anything more than Rs.120/40 kg. However, if subsidy, as requested by Pakistan Sugar Mills Association, is provided the surplus stock will be exported and mills will make the payment to growers.

Today DSL, HBL, HTL and PACE  may lead the Market in positive direction.

The Benchmark KSE100 Index is standing at its triple top from where it may be pushed back in the negative zone if it fails to open above 47110 with a positive gap. For the current trading session, selling on strength is recommended as its likely that the index would start a correction before breakout of its previous top.

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