PSX Daily Market Review - 6th March 2020

Trading volume at PSX floor increased by 153.74 million shares or 82.22% on DoD basis, whereas the benchmark KSE100 index opened at 38,992.89, posted a day high of 39,742.50 and a day low of 38,992.89 points during last trading session while session suspended at 38,382.11 points with net change of 475.71 points and net trading volume of 241.81 million shares. Daily trading volume of KSE100 listed companies also increased by 93.70 million shares or 63.26% on DoD basis.
Foreign Investors remained in net selling positions of 13.06 million shares and value of Foreign Inflow dropped by 3.18 million US Dollars. Categorically, Foreign Individuals, Corporate and Overseas Pakistani remained in net selling positions of 0.15, 0.04 and 12.86 million shares respectively. While on the other side Local Companies, NBFCs and Mutual Fund remained in net long positions of 20.42, 4.55 and 26.76 million shares but Local Individuals, Banks and Brokers remained in net selling positions of 22.05, 6.47 and 4.13 million shares respectively.

Stocks suffer, Treasury yields plumb new depths as virus spreads
Asian shares and U.S. stock futures fell on Friday following another Wall Street rout as disruptions to global business from the coronavirus beyond China worsened, stoking fears of a prolonged world economic slowdown. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 1.3%. Australian shares were down 1.64%, while Japan's Nikkei stock index .N225 slid 2.29%. Yields on 10-year U.S. Treasuries fell to a record low and two-year yields fell to the lowest in more than three years as investors increased bets that the Federal Reserve will follow this week’s surprise 50 basis point rate cut with further easing to prevent corporate bond spreads from widening further. Tumbling yields hammered the dollar, which traded near a six-month low versus the yen and close to a two-year trough against the Swiss franc.
1,400 cargo trucks stranded at Taftan as border shut on coronavirus fears
More than 1,400 trucks loaded with goods are stranded at the Taftan border crossing after Pakistan temporarily closed its border with Iran over concerns of coronavirus, Dawn has learnt from knowledgeable sources. Pakistan closed its border with Iran on Feb 23 amid rising number of coronavirus cases and associated deaths. Balochistan, which shares 959km border with Iran, has already declared emergency in the province to contain the virus. Well-placed sources told Dawn that Tehran has requested Islamabad to allow trucks to enter into the country. “We are considering finding out ways for the clearance of goods,” the source said while adding the final decision is expected in the next couple of days.
PM for ‘out-of-box’ solution to energy crisis
Prime Minister Imran Khan on Thursday directed the authorities concerned to find an “out-of-the-box” solution to the energy crisis without putting any additional burden on the common man. “As years of corruption and inefficiency have weakened the foundation of the system, the emergency situation required out-of-box measures,” the prime minister said. The prime minister expressed these views while presiding over a meeting held here to review measures being taken for improving the efficiency of the state-owned institutions.
Soomro vows transparency in privatisation
The Privat­i­sation Commission on Thur­sday discussed the divestment of up to 10 per cent shares of the Oil and Gas Development Company Ltd (OGDCL) and decided to seek approval of the Cabinet Committee on Privatisation in its next meeting. The committee on privatisation in its meeting in August 2019 had decided to divest up to 7pc of the government-owned shares in the OGDCL to generate non-tax revenue in order to retire national debt and give investors an opportunity to be part of the profit-making public sector enterprise. The meeting, chaired by Minister for Privatisation Muham­admian Soomro discussed the share price trend of the OGDCL in the capital market.
Urea prices lowered to Rs1,665 per bag
Food Security Minister Makhdoom Khusro Bakhtyar on Thursday said the price of urea has been fixed at Rs1,665 per 50kg bag, which will provide relief to farmers especially as the standing wheat crop was at its final stages. He said that the price reduction was in line with the vision of the government to offer relief to farmers and ensure food security for the country. The minister was referring to the price reduction by Fauji Fertiliser Company (FFC) on Thursday to reduce urea price by Rs75 per bag effective from Mar 2 while the rate of fertilizer has declined in the wake of the Gas Infrastructure Development Cess waiver by the government.