PSX Daily Market Review - 8th May 2017

Trading volume at PSX floor increased by 20.25 million shares or 7.04%, DoD basis. Whereas, the Benchmark KSE100 Index opened at 49283.65, posted a day high of 50098.59 and a day low of 49232.96 during the last trading session  while the session suspended at 49851.13 with a net change of 567.49 points and net trading volume of 136.69 million shares. Daily trading volume of KSE100 listed companies increased by 20.6 million shares or 17.74%, DoD basis.
Foreign Investors remained in a net selling position of 13.54 million shares and the net value of Foreign Inflow dropped by 4.78 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistani Investors remained in net buying positions of 67900 and 9378 shares but Foreign Corporate investors remained in a net selling position of 13.62 million shares. On the other side Local Individuals, Companies, Banks and NBFCs remained in net buying positions of 12.57, 3.39, 2.05 and 1.29 million shares respectively but Local Mutual Funds and Brokers remained in net selling positions of 3.01 and 6.57 million shares.

The euro hit a six-month high against the dollar on Monday while Asian shares gained and U.S. stock futures briefly touched a record high, on investor relief after centrist Emmanuel Macron comfortably won the French presidential election. The common currency gave up gains later, with some market participants citing uncertainties on whether his new party, rebranded La Republique En Marche, can get a parliamentary majority in elections in June. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.3 percent, snapping a three-day losing streak. Japanese Nikkei .N225 gained 1.7 percent to hit a near 1 1/2-year high after a five-day weekend due to the Golden Week holidays.
Electricity consumers across the country had a bad day on Sunday, when the gap between the demand and supply kept fluctuating between 5,000 and 7,000 megawatts, resulting in extensive power cuts of seven to 10 hours. The Ministry of Water and Power said the demand crossed 20,223MW at 8pm, compared to peak generation of 15,400 to 15,700MW, a shortfall of 4,786MW.
The Federal Board of Revenue (FBR) has identified over 21,800 big taxpayers and 100,000 rich individuals who have disappeared from the tax net in the past one year. In the tax years 2014 and 2015, the big taxpayers – including 7,720 companies and 14,103 associations of persons (AoPs) – had filed their income tax returns and paid revenue of Rs10.415 billion, and Rs11.697bn, respectively. In tax year 2016, they did not file tax returns.
Finance Minister Ishaq Dar has said Gross Domestic Product (GDP) growth rate is expected to be above five percent during current fiscal year with inflation slashed to single digit around 4 percent - the lowest in 47 years. While addressing the second business session of annual meeting of Asian Development Bank, chaired by Japanese Deputy Prime Minister Taro Aso, Dar said that an effective resource mobilisation strategy helped in increasing tax collections by 60 percent over the last three fiscal years, a 20 percent average annual increase.
Sui Northern Gas Company Limited (SNGPL) and Sui Southern Gas Company (SSGC) are making concerted efforts to bring down the UFG (unaccounted for gas) losses to ensure smooth supply of natural gas to consumers, official sources in the Ministry of Petroleum and Natural Resoruces said. "Gas theft, law and order affected areas, minimum billing, leakages, measurement errors and shift of bulk sales to retail sector are among the major UFG contributing factors," they told APP. The government took drastic measures against gas theft and illegal connections across the country which was helping to bring down down the UFG losses gradually, they added.

Today EFERT, NBP, SML and STPL can lead the market in the positive direction.

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