PSX Daily Market Review - 01st Nov 2018

Trading volume at PSX floor dropped by 42.59 million shares or 12.99% on DoD basis, whereas the Benchmark KSE100 index opened at 41,611.95 posted a day high of 41,825.55 and day low of 41,237.48 points while the session suspended at 41,649.36 with net change of 40.33 points and net trading volume of 178.97 million shares. Daily trading volume of KSE100 listed companies dropped by 41.20 million shares or 18.71% on DoD basis.
Foreign Investors remained in net selling position of 1.43 million shares and net value of Foreign Inflow dropped by 1.06 million US Dollars. Categorically, Foreign Individuals and Foreign Corporate remained in net buying positions of 0.12 and 0.51 million shares but Overseas Pakistanis investors remained in net selling positions of 2.06 million shares. While on the other side Local Individuals, Local Companies, Banks and Mutual Fund remained in net selling positions of 5.24, 6.23, 0.13 and 4.69 million shares but NBFCs, Brokers and Insurance Companies remained in net buying positions of 0.31, 8.32 and 10.13 million shares respectively.

Asia starts new month up on strong Wall Street after brutal October
Asian stocks rose on Thursday as bruised investor sentiment got some relief from another robust Wall Street session, while the pound rallied on a report Britain has secured a deal that would give its financial services firms continued access to European markets after Brexit. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9 percent, adding to modest gains the previous day, though this came after a brutal October month. The index had fallen 10.2 percent in October, it worst monthly performance since August 2015, as factors ranging from Sino-U.S. trade tensions to worries about global economic growth, higher U.S. interest rates and company earnings spurred volatility in global markets.
PPIB attracted $16.7b investment so far
PPIB has so far attracted $16.7 billion investment through commissioning 37 power generation projects of around 15,500MW. This was stated by Managing Director PPIB Shah Jahan Mirza while briefing the PPIB board here. Federal Minister for Power Omar Ayub Khan chaired 119th Board meeting of Private Power and Infrastructure Board (PPIB). It was also explained that PPIB is currently processing the most diversified portfolio of its history which comprises of twenty five projects of more than 14,000 MW. It was underscored that currently more than 50% of electricity is fed into national grid by the private sector.
Nepra imposes Rs2 million fine on K-Electric
NEPRA has imposed a fine of Rs 2 million on K-Electric. This penalty has been imposed on K-Electric for non-compliance of performance standards, particularly failure to restore the power supply within the prescribed time frame and to ensure the safety of public in Karachi. “Weak and fragile distribution network was the major reason for unscheduled power cuts which could not withstand few millimeters rain and K-Electric failed to resume the power supply within prescribed time period,” said spokesman NEPRA here.
China factory activity slows in October amid trade war woes
Chinese factory activity slowed in October, official data showed Wednesday, adding to a growing list of bad news for the Asian giant as it struggles to maintain economic momentum in the face of US tariffs and a weakening yuan. The Purchasing Managers’ Index (PMI), a key gauge of factory conditions, came in at 50.2 for the month, down from 50.8 in September, the National Bureau of Statistics said.
Special status for rice sector proposed to boost exports
The commerce ministry has prepared a proposal to include rice in the list of sectors under special incentives to promote exports and earn foreign exchange, said the ministry officials on Wednesday. The ministry will put up the proposal before Economic Coordination Committee (ECC) in the next meeting. Rice sector fetches $2 billion per annum in foreign exchange and is the second largest export commodity. The country is net exporter of rice and produces 60 per cent more than domestic demand. Currently, five sectors enjoy government incentives to promote exports. These export-oriented sectors are exempted from sales tax, electricity load shedding, and gas load shedding — for period between December to February — in addition to enjoying reduced electricity tariffs.

The Benchmark KSE100 Index has reachedbreached 61.8% correction oo its weekly move. Technically it is about to face resistance from crossover of a descending trend line along with a horizontal resistant line. As of now bears would have their last hope standing at 41,500 points and 42,300 points because closing above these regions would change market sentiment for short term basis in bullish direction. It’s recommended to post stop loss to any short positions at 41,500 points on closing basis and for new entries either wait for closing above 41,500 or initiate short positions on spike with strict stop loss of 42,230 points. After a clear breakout of 41,500 index would try to target 42,300 and 43,011 points in coming days. While on flipside index would find supports around 40,400 and 39,400 points.