PSX Daily Market Review - 5th May 2017

Trading volumes on PSX floor increased by 27.66 million shares or 10.63%, DoD basis. Whereas, the Benchmark KSE100 Index opened at 48632.55 with a positive gap of 27.41 points, posted a day high of 49389.95 and a day low of 48632.55 during the last trading session while it suspended at 49283.64 with a net change of 678.50 points and a net trading volume of 116.09 million shares. Daily trading volume of KSE100 listed companies dropped by 18.81 million shares or 13.95%, DoD basis.
Foreign Investors remained in a net selling position of 18.2 million shares and the net value of Foreign Inflow dropped by 6.87 million US Dollars. Categorically, Foreign Individual and Overseas Pakistani investors remained in net buying positions of 0.19 and 1.08 million shares, respectively. However, Foreign Corporate investors remained in a net selling  position of 19.47 million shares. While on the other side, Local Individuals, Companies, Banks, NBFCs and Brokers remained in net buying positions of 12.06, 1.93, 5.95, 0.14 and 0.82 million shares ,respectively. Mutual Funds remained in a net buying position of 3.07 million shares.

Asian stocks declined for a third consecutive day on Friday as fresh falls in commodities raised concerns about the health of the global economy, though the euro bucked the broad weakness on receding concerns about French presidential election. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.4 percent on Friday and was trading at its lowest level since April 25. Hong Kong .HSI led regional losers with losses of 0.8 percent in opening trades. Australian shares fell 0.5 percent with metals and mining related stocks leading the decline. Japan .N225 and South Korea .KS11 markets are closed for trading. "The falls in commodities prices definitely tell us there is some kind of a moderation under way in the global economy and I would advise taking some money off the table at these levels," said Cliff Tan, East Asia head of global markets research at Bank of Tokyo Mitsubishi UFJ in Hong Kong.
The rupee depreciated against all major currencies in the first quarter of 2017, leaving a positive impact on exports. According to the monthly Statistical Bulletin of the State Bank of Pakistan (SBP) issued on Thursday, the local currency fell against all major as well as regional currencies, except the Iranian rial. Pakistani exports to Iran declined during the first quarter of 2017. The country has been struggling to grow its exports. With ever-increasing imports, the trade deficit in the first nine months of the current fiscal year reached $23 billion. A depreciation of the local currency and an increase in exports are positive signs for the country’s export sector.
The Oil and Gas Regulatory Authority (Ogra) has issued show-cause notices to three oil-marketing companies for unauthorised sale of petroleum products in violation of legal requirements and their own marketing licences. The companies — Exceed Petroleum, Kepler Petroleum and Quality-1 Petroleum — have 15 days to clarify why they should not be penalised or their licences cancelled for violating laws, regulations and rules. Ogra said all the three companies had set up their retail outlets in Khyber Pakhtunkhwa without having a licence to sell products in the province.
The federal government plans to launch another high-voltage power line — from Thar to Lahore — to transmit more than 4,000 megawatts of electricity. The high voltage direct current (HVDC) line of 660 kilovolts will transmit power from future projects in Sindh to load demand centres in Punjab. The project, a part of the next five years’ development plan for the energy sector, may also be included in the China-Pakistan Economic Corridor (CPEC) in the future, according to official sources in the Ministry of Water and Power. The government has already included two similar projects — Matiari (Hyderabad)-Lahore and Port Qasim (Karachi)-Faisalabad in the CPEC.
The Japanese government has agreed to provide a concessional loan of 2.665 billion yen (approximately $24 million) to the government of Pakistan for Islamabad and Burhan Transmission Line Reinforcement Project. The notes to this effect were signed and exchanged between Japanese Ambassador Takashi Kurai and Economic Affairs Division Additional Secretary Amin Anjum Assad. Japan’s State Minister for Foreign Affairs Nobuo Kishi and Minister for Water and Power Khawaja Muhammad Asif were also present on the occasion. Under the arrangement, Japan will provide $24 million for implementation of Islamabad-Burhan Transmission Line Reinforcement Project (Phase-I). Japan Cooperation Agency (JICA) will implement the loan project. The objective of the project is to improve reliability of the national grid and to meet the growing demand for electricity transmission through reinforcement of transmission lines necessary for power supply to the Islamabad capital territory and surrounding areas, thereby contributing to the improvement of economic infrastructure of Pakistan.

Today UBL, POWER, CSAP and NML can lead the market in the positive direction.

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