PSX Daily Market Review - 6th June 2017

Trading volume at PSX floor increased by 33.38 million shares or 15.05%, DoD basis, whereas, the KSE100 index opened at 48705.86 with a positive gap of 150.56 points, posted a day high of 50163.07 and a day low of 48555.30 during the last trading session. The session suspended at 50120.93 with a net change of 1565.63 points and a net trading volume of 99.97 million shares. Daily trading volume of KSE100 listed companies dropped by 5.09 million shares or 4.84%, DoD basis.
Foreign Investors remained in a net selling position of 7.38 million shares and the net value of Foreign Inflow dropped by 8.32 million US Dollars. Categorically, Foreign Individuals remained in a net buying position of 43324 shares but Foreign Corporate and Overseas Pakistani Investors remained in net selling positions of 5.11 and 2.32 million shares respectively. While on the other side, Local Individuals, Companies and Banks remained in net selling positions of 4.95, 6.3 and 0.85 million shares, respectively. However, Local Mutual Funds and Brokers remained in net buying positions of 11.81 and 5.63 million shares.

Asian stocks retreated on Tuesday after Wall Street stumble overnight, while oil inched up from the previous day losses as lower Libyan oil production assuaged concerns that the severing of ties with Qatar by other Arab states could impede a deal to cut crude output. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2 percent in early trade, pulling back from a two-year high hit on Monday. Japanese Nikkei .N225 dropped 0.4 percent. South Korean markets were closed for a holiday. Australian shares tumbled 0.9 percent
Sindh Chief Minister Syed Murad Ali Shah, who also holds the portfolio of the finance minister, today presented budget of Rs1.043 trillion for the fiscal year 2017-18 in the Sindh Assembly. Before the provincial assembly session, the provincial cabinet met to accord approval to budgetary estimates of the upcoming financial year and revised budget for the outgoing fiscal 2016-17. “The task before is ardous... [but] we are armed with the vision of Shaheed Zulfikar Bhutto and BB,” he said prior to presenting figures, complaining that Sindh has been discriminated against by the federal government. For the upcoming fiscal year, the outlay represents an increase of 20 per cent compared to previous fiscal year’s figure of Rs869.12 billion. The budget deficit is expected to be more than Rs14 billion for the upcoming fiscal year, Shah said. Total revenue is expected to see a 20.4 per cent increase at Rs1.028.8 trillion from previous fiscal year.
The World Bank forecasts that Pakistan is expected to pick up to a 5.2 per cent economic growth in fiscal 2017 (July 1, 2016 – June 30, 2017) and to 5.5 per cent in the next fiscal year which reflect an upturn in private investment to increase energy supply and improve security. “The overall growth in the South Asian region is forecast to pick up to 6.8 percent in 2017 and accelerate to 7.1 percent in 2018 which reflect a solid expansion of domestic demand and exports,” World Bank’s June 2017 Global Economic Prospects said.
China Pakistan Economic Corridor (CPEC) early harvest projects have created direct employment for over 30,000 Pakistani engineers and workers, official data revealed. According to the planning commission data available with The Nation, out of the total 38,000 jobs, under early harvest projects of the CPEC, around 8,000 or less than 25 percent were consumed by Chinese workers. Energy projects, under the CPEC portfolio, are the major employment contributor where 16,000 Pakistanis were hired as labourer and engineers, the data said. The Port Qasim Coal Power project is on the top of the list which created job opportunities for 5,000 Pakistanis.
The Senate Standing Committee on Finance and Revenue has recommended the government to provide tax exemptions to the local industry as it has given under China Pakistan Economic Corridor (CPEC). The Senate committee, which met under the chair of Senator Saleem Mandviwalla, has discussed the budget proposals of the senators and local industry representatives. The committee members showed concerns on granting tax exemptions to the projects under CPEC. “The local industry of the country will be shut down due to the tax exemptions given to CPEC projects. The government should also provide same exemptions to the local industry so they can compete with Chinese products,” said Mandviwalla.
Pakistan International Airlines (PIA) will be operating special flights to Doha to bring back Pakistani pilgrims stranded there. In a statement issued on Monday, PIA CEO Nayyar Hayat had directed that special flights be arranged for the pilgrims. Mr Hayat has asked the country manager to coordinate with the Pakistanis stranded in Qatar. PIA officials in Doha have also been directed to contact the Pakistani embassy in Doha. Pakistani pilgrims who were travelling to Saudi Arabia for Umrah via Qatar were stranded in Doha after several countries including Saudi Arabia, UAE and Egypt cut diplomatic ties with Qatar.

Today DSL, ENGRO, MLCF , and PAEL may lead the market in the positive direction.