PSX Daily Market Review - 6th July 2017

Foreign Investors remained in a net selling of 5.33 million shares and the net value of Foreign Inflow dropped by 4.92 million US Dollars. Categorically, Foreign Individual, Corporate and Overseas Pakistani investors remained in net selling of 0.016, 4.44 and 0.88 million US Dollars. While on the other side, Local Individuals, Banks and Brokers remain in net selling of 12.52, 0.72 and 0.13 million shares but Local Companies and Mutual Funds remained in net buying of 5.28 and 9.86 million shares, respectively.

Most Asian stock markets fell on Thursday after minutes from the Federal Reserve last meeting showed a lack of consensus on the future pace of U.S. interest rate increases, while oil prices inched higher following a steep decline a day earlier. MSCI broadest index of Asia-Pacific shares outside Japan was down 0.2 percent. Japanese Nikkei slipped 0.3 percent as a stronger yen depressed the outlook for export earnings. South Korean KOSPI lost 0.2 percent, while Australian shares were down 0.3 percent. Chinese bluechip CSI 300 index fell 0.2 percent and Hong Kong Hang Seng slid 0.1 percent.
A record cargo volume of 52.49 million tonnes was handled at Karachi Port during 2016-17, registering a growth of 4.89 per cent over the previous year’s 50.05m tonnes. According to details, dry cargo handling jumped 7.46pc to 37.17m tonnes during the year as against 34.59m tonnes the port dealt with last year.The breakup of imports comprised 18.57m tonnes of dry general cargo which stood at 2.79pc higher over the last year when 18.07m tonnes were handled. The import of bulk cargo made a remarkable growth of 23.85pc at 10.05m tonnes as against 8.12m tonnes handled in 2015-16.
Taking serious notice of the spike in interbank rates for the US dollar against the Pakistani rupee, Finance Minister Senator Ishaq Dar said that the rise of the US dollar against the rupee was "artificial". The sudden rupee devaluation on Wednesday was the currency biggest drop in nine years. During an emergency meeting of officials from the Finance Division, Dar took notice and expressed deep concern and disappointment at the fact that the "current political situation was being exploited by certain individuals, banks and entities".
Gas supply to Punjab industrial units, compressed natural gas (CNG) stations and four power plants was temporarily suspended on Tuesday after a liquefied natural gas (LNG) terminal owned by Engro Corporation encountered a technical fault. The outage resulted in gas supply suspension to 412-megawatt Rousch and 157MW Fauji Kabirwala power plants in Khanewal, and two state-owned plants in Faisalabad having a combined production capacity of 241MW. As a result, the country’s power shortfall soared by nearly 800MW, to 4,500MW.
Tax exemption on Information Technology exports is an incentive of the incumbent government to promote IT industry, which will ensure a new era of evolution in the country. IT is an emerging sector and it requires support to flourish. The current situation is the main reason for tax exemption on IT sector till June 2019. The federal government has extended the exemption on exports of IT products and services in the federal budget for 2016-17. Over the last few years, the Ministry of IT and Telecom (MOIT) has taken a number of initiatives for the development of ICTs especially in the arena of access, skills, markets, and governance to attain Prime Minister Nawaz Sharif vision of a Digital Pakistan, an official of the ministry said.

The Market is expected to remain volatile today. We advise Traders to exercise caution. Buying on dips and booking gains on strength is recommended.

The Benchmark KSE100 Index bounced back yesterday after resisting  from a horizontal resistant line and have generated a hammer on daily chart. For current trading session, it has supportive regions around 44800 and 44350 points while resistant regions are standing at 46315 and 46982 points. Trading with strict stop loss of 44800 is recommended for current trading session.