PSX Daily Market Review - 8th Jan 2020

Trading volume at PSX floor dropped by 59.74 million shares or 22.41% on DoD basis, whereas the benchmark KSE100 index opened at 41,296.24, posted a day high of 41,967.94 and a day low of 41,296.24 points during last trading session while session suspended at 41,904.47 points with net change of 608.23 points and net trading volume of 142.51 million shares. Daily trading volume of KSE100 listed companies dropped by 57.49 million shares or 28.75% on DoD basis.
Foreign Investors remained in net selling positions of 0.18 million shares but value of Foreign Inflow increased by 3.68 million US Dollars. Categorically, Foreign Individuals remained in net selling positions of 1.66 million shares but Foreign Corporate and Overseas Pakistanis remained in net buying positions of 0.99 and 0.49 million shares. While on the other side Local Individuals, Companies, NBFCs and Mutual Fund remained in net selling positions of 31.90, 0.94, 0.26 and 12.45 million shares but Banks, Brokers and Insurance Companies remained in net buying positions of 0.19, 49.48 and 1.33 million shares respectively.

Stocks tumble, gold and crude soar after Iran strike on U.S. forces
Asian shares and U.S. treasury yields tumbled on Wednesday, while the yen, gold and oil shot higher after Iran fired rockets at Iraqi airbases hosting U.S. military forces, stoking fears of a wider conflict in the Middle East. Iran’s missile attacks on the Ain Al-Asad air base and another in Erbil, Iraq, early Wednesday came hours after the funeral of an Iranian commander whose killing in a U.S. drone strike has intensified tensions in the region. MSCI’s broadest index of Asia-Pacific shares outside Japan was 1% lower shortly after China’s share markets began trading, with China’s blue-chip CSI300 index down 0.56%. Japan’s Nikkei tumbled 2.2% and Australian shares fell more than 1%. U.S. stock futures were also sharply lower, with S&P500 e-minis off nearly 1%.
PM approves Rs7bn Utility Stores relief package
Special Assistant to the Prime Minister on Information Dr Firdous Ashiq Awan said on Tuesday Prime Minister Imran Khan has approved a Rs7 billion package for providing relief to the poor through the Utility Stores Corporation (USC). Speaking at a press conference here along with USC Chairman Zulqarnain Ali Khan and Managing Director Umar Lodhi, the special assistant said that the relief package was in line with the prime minister’s vision of a welfare state modelled on that of Madina. The package includes lowering the prices of essential edible items, including flour, cooking oil, rice and pulses. Dr Awan said that the USC would ensure delivery of basic items at affordable prices to the poorest section of society because this was one of the government’s top priorities.
PSO dues, Wapda loans and Tapi on second ECC meeting agenda
The government has called another meeting of the Economic Coordination Committee (ECC) on Wednesday for constitution of a price negotiation committee for Turkmenistan-Afghanistan-Pakistan-India (Tapi) Pipeline and settlement of about Rs75 billion liabilities to state-run entities. To be presided over by Adviser to the Prime Minister on Finance & Revenue Dr Abdul Hafeez Shaikh, the second meeting of the ECC within a week will be presented a case for payment of Rs28bn dues to the Pakistan State Oil (PSO) on account of foreign exchange loss besides settlement of Rs38.12bn loans acquired by Water & Power Development Authority (Wapda) for payment of net hydel profit (NHP) to the provinces. A senior government official told Dawn that PSO had been authorised by the Ministry of Finance to arrange foreign exchange requirements for oil imports under FE-25 to release pressure on the country’s foreign exchange reserves. The finance ministry had allowed a credit limit of up to Rs600bn.
Ecnec approves seven development projects worth Rs216.4 billion
The Executive committee of the National Economic Council (ECNEC) on Monday approved seven development projects worth Rs216.4 billion that related to poverty alleviation, education, hydropower project and others. Adviser to the Prime Minister on Revenue and Finance Dr Abdul Hafeez Shaikh chaired the meeting of the ECNEC. The ECNEC considered and approved seven projects put forth by Ministry of Planning, Development and Special Initiatives. ECNEC considered and approved the Southern Punjab Poverty Alleviation Project (SPPAP)-IFAD assisted, Revised-III at the total cost of Rs15.52 billion with Rs 7.5 billion as the FEC.
Pak Suzuki to shut down production for four days
Pak Suzuki Motor Company (PSMC) on Tuesday announced that it will observe three non-production days — every Monday — during the month of January owing to depressed demand. In a notice to its vendors, the company said that it will observe “Mondays of current month as NPDs owing to depressed demand.” January is usually considered as a recovery month for auto sales as buyers resume purchases after slowing down their buying activities in November and December of every year due to change of model year. Vendors said the PSMC had also revised down production schedule of its hot selling Alto 660cc car by 25 per cent for January.