PSX Daily Market Review - 7th June 2017

Trading volume at PSX floor dropped by 23.41 million shares or 9.17%, DoD basis. Whereas, the KSE100 Index opened at 50297.80, posted a day high of 50311.01 and a day low of 49920.08 during the last trading session. It suspended at 50144.63 with a net change of 23.70 points and a net trading volume of 89.85 million shares. Daily trading volumes of KSE100 listed Companies dropped by 10.12 million shares or 10.12%, DoD basis.
Foreign Investors remained in a net buying position of 3.84 million shares with the net value of Foreign Inflow dropping by 3.86 million shares. Categorically, Foreign Individual and Corporate investors remained in net selling positions of 0.05 and 4.27 million shares but Overseas Pakistanis remained in a net buying position of 8.16 million shares. While on the other side Local Individuals, Companies, NBFCs and Brokers remain in net selling positions of 6.28, 5.85, 1.32 and 0.9 million shares, respectively. However, Banks and Mutual Funds remained in net buying positions of 2.25 and 6.73 million shares.

Gold and sovereign debt are set to build on solid overnight gains while Asian stocks are likely to slip on Wednesday as investors reduce risk before several major political and economic events later this week. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged 0.2 percent lower, retreating further from a two-year high hit on Monday. Early Asian markets such as Australia and Japan .N225 are pointed lower. Major U.S. stock indexes fell between 0.23 percent and 033 percent on Tuesday.
Domestic crude oil production of Pakistan stood at 24.2 million barrels (mbl) in first three quarters of the current fiscal year as compared to 24 mbl during the corresponding period last year. "Indigenous resources of oil are not enough to quench energy thirst of a growing economy, so the country imported 5.9 million tones crude oil to meet its domestic needs from July 2016 to March 2017," official sources told APP. They said the government was making all-out efforts to accelerate oil and gas exploration activities in different potential areas of the country, for which it would spend Rs 554.291 million in the next fiscal year.
The Indus River System Authority (Irsa) has increased the water releases from Tarbela dam to keep the reservoir level below 1480 feet required for the continuation of work on Tarbela 4th Extension Hydroproject. “Wapda has asked the authority to keep the reservoir level below 1480 feet till June 26 so work on 1410MW Tarbela 4th extension project will not be affected,” said official sources to The Nation here Tuesday. Therefore it was decided in the Irsa meeting that the outflow from Tarbella reservoir will be increased to keep the dam level below the 1480 feet, the official said.
The government has announced generous subsidies for the month of Ramazan but the major chunk of this subsidy would remain unutilised as most of the rural population of the country is not be included in the aid, due to administrative reasons. The federal government is providing over Rs1.6 billion subsidy on 19 commodities to provide relief to the general public during the holy month. These subsidies have been given through 5500 utility stores spread across the country. There are 9 zonal offices including Islamabad, Peshawar, Abbottabad, Sarghodha, Multan, Sukhur, Karachi, Quetta and Lahore. Quetta zonal office controls around 300 utility stores in Balochistan while there are 550 under administrative control of Karachi, and 480 in Sukhur, Sindh.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday said super tax was imposed for one year but it has been extended for the third consecutive year in the budget which is discouraging investors. This tax was imposed for one year in 2015 to help settle people displaced in the war against terror. The sacrifices of Army have restored peace and over ninety percent displaced people have returned to their homes, therefore, an extension of the super tax is unjustified, it said. Many Senators and Parliamentarians representing opposition and government have voiced against this controversial tax while 193 companies working in Pakistan have also called for the discontinuation of this tax which must be considered, said Atif Ikram Sheikh, Chairman FPCCI Regional Committee on Industries. He said that super tax must be abolished to encourage foreign investors who have expressed their concerns repeatedly. Atif Ikram Sheikh also lauded masses for launching a successful campaign on social media to boycott profiteers. It resulted in reduced prices of fruits in many major cities of the country but the impact seems temporary.

Today APL, KOHC, OGDC , and TRG may lead the market in the positive direction.