PSX Daily Market Review - 7th July 2017

Foreign investors remained in net buying position of 0.31 million shares and the net value of Foreign inflow increased by 2.17 million US Dollars. Categorically, Foreign Corporate investors remained in a net selling position of 0.086 million shares but overseas Pakistanis remained in a net buying position of 0.39 million shares. While on the other side, Local individuals, Companies, Banks and Mutual Funds remained in net buying position of 1.82, 1.67, 2.69 and 3.57 million shares, respectively. However, Brokers remained in a net selling position of 9.82 million shares.

Asian shares lost ground on Friday after a weak session on Wall Street, while global sovereign debt yields were elevated across the board on bets the European Central Bank is moving ever closer towards unwinding its massive monetary stimulus. MSCI broadest index of Asia-Pacific shares outside Japan slipped 0.6 percent, after the Dow lost 0.7 percent and the tech-heavy Nasdaq fell 1 percent on Thursday, partly as higher Treasury yields dimmed the appeal of equities. Japanese Nikkei was down 0.1 percent, South Korean KOSPI dropped 0.3 percent and Australian stocks declined 1.3 percent. Hang Seng slipped 0.35 percent.
Asian Development Bank (ADB) Vice President Wencai Zhang on Thursday said that the bank would release almost two billion dollars loan to Pakistan during ongoing financial year 2017-18. He said that currently ADB is disbursing around $1.5-$1.6 billion annually to Pakistan. However, the ADB is trying to do more, as the Bank would release nearly two billion dollars in the current fiscal year. The ADB would provide $6 billion to Pakistan under the three-year (2018-20) operation plan. The government of Pakistan is asking us to disburse $2.5 billion annually, said Vice President ADB, who is currently visiting to Pakistan to discuss ADB’s development partnership with the Pakistan’s economic team. He met with Finance Minister, Railways Minister, Planning and Development Minister, Water and power minister and chairman NHA.
Central Development Working Party(CDWP) Thursday approved 17 development projects worth Rs 178.3 billion and forwarded 6 mega projects, including RBOD-I-II and III, to Executive Committee of National Economic Council (ECNEC) for further approval. The CDWP approved projects in transport & communications, energy, water resources, information technology, higher education, physical planning & housing, health and governance sectors. The meeting was chaired by Federal Minister and Deputy Chairman Planning Commission, Ahsan Iqbal and was attended by officials from different ministries and provincial governments.
National Telecommunication Corporation (NTC) and Telenor Pakistan have signed an agreement for provision of telecom services to NTC customers across Pakistan, through their mobile network. Under the agreement between NTC and Telenor, Telenor will provide services like internet dongles, mobile handsets and SIM cards to provide 3G/4G GSM and data services in areas where NTC infrastructure is not available. The signing ceremony was attended by Brig (r) Viqar Rashid Khan, MD NTC, and Irfan Wahab, CEO Telenor Pakistan. NTC is the official IT and telecom service provider for the Government of Pakistan and has been granted Integrated LDI License to provide ICT services to armed forces, defense projects, federal government, and provincial governments or as the federal government may determine.
The total liquid foreign reserves held by the country stood at $21,367.8 million on June 30. Foreign reserves held by the State Bank of Pakistan stood at $16,143.3 million and net foreign reserves held by commercial banks are $5,224.5 million. During the week ending 30th June, SBP’s reserves decreased by $233 million to $16,143 million, due to payments on account of external debt servicing.

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 is currently finding support from a rising trend line at 44500 along with a horizontal supportive region at 44300. Daily stochastic is attempting to generate a bullish crossover which could push the index back in bullish zone. For the current trading session, Index would try to bounce back towards 45350 as its attempting to bounce back after retesting supportive regions on hourly chart, but closing below 44300 will call for a new bearish trend which would target 43700 and then 43000.