PSX Daily Market Review - 8th June 2017

Trading volume at PSX floor increased by 0.77 million shares or 0.33%, DoD basis. Whereas, the KSE100 index opened at 50236.85 with a positive gap of 92.22 points, posted a day high of 50349.10 and a day low of 49968.74 during the last trading session while the session suspended at 50162.81 points with a net change of 18.18 points and a net trading volume of 59.64 million shares. Daily trading volume of KSE100 listed companies dropped by 30.17 million shares or 33.58%, DoD basis.
Foreign Investors remained in a net buying position of 4.4 million shares and the net value of Foreign Inflow increased by 3.99 million shares. Categorically, Foreign Individuals remained in a net selling position of 0.021 million shares but Foreign Corporate and Overseas Pakistani Investors remained in net buying  positions of 3.51 and 0.91 million shares, respectively. While on the other side, Local Individuals and Mutual Funds remained in net buying  positions of 2.68 and 0.62 million shares whereas Local Companies, Banks, NBFCs and Brokers remained in net selling  positions of 5.58, 2.09, 0.2 and 0.52 million shares, respectively.

Asian shares wobbled in early Thursday trade as investors braced for any surprises from congressional appearance of former FBI director James Comey, policy meeting of the European Central Bank and the UK general elections. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.27 percent while Japanese Nikkei .N225 rose 0.3 percent thanks to the dollar rebound against the yen.
The Economic Coordination Committee of the Cabinet on Wednesday approved the provision of a government guarantee by the Ministry of Finance for repayment of a loan as well as interest, for a syndicated term finance facility for the power sector amounting to Rs41 billion. The amount will be utilised for the purposes of funding the repayment liabilities of the Distribution Companies (Discos), through an arrangement between Power Holding (Private) Limited and Discos. The ECC discussed and approved proposals from different ministries on Wednesday in a meeting at the Prime Minister Office, with Finance Minister Ishaq Dar in the chair.
The Economic Coordination Committee (ECC) of the Cabinet on Wednesday decided for not deregulating the sugarcane prices after three provinces opposed the proposal of the federal government. The ECC considered and approved a proposal of Ministry of Industries & Production, finalized with consensus, for not deregulating the price of sugarcane. Last year, the ECC had proposed that price of sugarcane may be deregulated from next season (2017) to eliminate government’s involvement and provision of subsidy. However, three provinces i.e. Punjab, Sindh and KPK had not supported the proposal. They said if sugarcane prices are deregulated, mill owners will fleece the growers.
GE Transportation will provide Pakistan Railways with 20 FDL C20EMP locomotives to help in the transportation of people and goods across the country’s mountainous northern terrain. “We continue to make great strides towards reaching the transportation goal as part of the country’s Vision 2025 plan,” said Khawaja Saad Rafique, Federal Minister, Pakistan Railways. “Modernizing rail transportation and improving regional connectivity are critical components of the government’s plan, and we’re confident that our relationship with GE will help achieve these goals,” he said.
Finance minister of Khyber Pakhtunkhwa, Muzaffar Said, on Wednesday unveiled the province annual budget for fiscal 2017-18, which has a total outlay of Rs603 billion. For the fiscal 2017-18, the KP government expects to generate Rs45.21bn through the province’s own tax and non-tax sources. A Rs10bn loan will also be taken to undertake developmental programmes. The rest will come from the federation. In his budget speech, Muzaffar stated that the provincial government has been striving to secure royalties relating to hydel power projects and has achieved considerable success in this regard. Rs24.7bn will be received from the federation under this head.