PSX Daily Market Review - 10th April 2018

Trading volume at PSX floor dropped by 45.36 million shares or 18.28% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 46,652.16, posted a day high of 46,828.20 and a day low of 46,530.06 during last trading session. The session suspended at 46,580.62 with net change of -57.00 and net trading volume of 100.57 million shares. Daily trading volume of KSE100 listed companies dropped by 35.82 million shares or 26.26% on DoD basis.
Foreign Investors remained in net selling position of 0.3 million shares but net value of Foreign Inflow increased by 3.21 million US Dollars. Categorically, Foreign Individual and Corporate Investors remained in net buying positions of 0.06 and 0.64 million shares but Overseas Pakistanis remained in net selling position of 1.0 million shares. While on the other side Local Individuals and Brokers remained in net buying positions of 3.35 and 13.46 million shares but Local Companies, Banks, NBFCs, Mutual Funds and Insurance Companies remained in net selling positions of 0.38, 4.49, 0.36, 6.82 and 5.31 million shares respectively.

Stocks rally as Xi calms jitters over U.S.-China trade row
U.S stock futures rallied, Asian shares bounced and the safe haven yen fell on Tuesday as Chinese President Xi Jinping promised to lower import tariffs on products including cars this year, helping soothe investor jitters over an escalating U.S.-China trade row. U.S. S&P 500 E-mini futures rose 1.2 percent ESc1, while the MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS recovered from early losses and advanced 0.8 percent. Japan's Nikkei share average .N225 climbed 1.1 percent.
Growth to hit 11-year peak
The PML-N government on Monday announced that the economy is going to grow at 5.79 per cent, slightly lower than the target of 6pc for 2017-18, but highest in the last 11 years. In the meeting of National Accounts Committee (NAC), only 15 out of 20 key growth indicators were found to be on target. The growth rate, however, is provisional as final numbers for the full year will firm up later. The per capita income calculates to Rs180,204 for 2017-18, higher than Rs162,230 figure for FY17 based on provisional data from Population Census 2017 held in March last year. The agriculture sector witnessed growth of 3.81pc, exceeding its target of 3.5pc in the outgoing fiscal year.
Oil industry declines to pay Ogra fee
The oil industry has declined to pay annual fees to the Oil and Gas Regulatory Authority (Ogra) unless formal notification of an agreement on fee structure reached in June last year. The oil industry and Ogra had reached an out-of-court settlement on a two-year old dispute over fee structure payable by all oil marketing, refining, storage, and pipeline companies. The two sides also signed a formal agreement to double the term of licence for the oil related companies from 15 to 30 years with a fee of Rs2.5 million per licence while annual fee structure was based on the market size and throughput sales. However, Ogra or the government did not issue a notification or statutory regulatory order to formalise the agreement over the following nine months. Facing cash flow constraints, Ogra suddenly ordered the Oil Companies Advisory Council (OCAC) to “ensure the payment of outstanding fee from oil industry on the immediate basis”.
Exports up 24pc in March
The exp­or­ts of merchandise posted a growth of 24 per cent year-on-year to $2.23 billion in March, the Ministry of Commerce announced on Monday. This is the highest growth posted in a single month in the last four years, according to an official announcement. Between July-March, exports recorded a growth of 13pc year-on-year to $17.08bn. According to the commerce ministry statement, the initiatives by the government to provide duty drawback as well as the exchange rate adjustments have contributed positively to the growth. Improved market access especially in the European market owing to the successful review of GSP+ facility also played an important role.
Neelum-Jhelum starts providing power to grid
Neelum Jhelum Hydropower Project has started providing electricity to the national grid on trial basis. The first unit is contributing 60MW electricity to the system and will generate electricity to its full capacity to the tune of 242MW in next two days. Neelum Jhelum Hydropower Project, located in Azad Jammu & Kashmir, is scheduled to be inaugurated on April 13. The project has four units with cumulative generation capacity of 969-MW. The first unit has started electricity generation followed by the second, third and fourth units at one month interval respectively.
Market is expected to remain volatile therefore it'ss recommended to stay cautious while trading today.

The Benchmark KSE100 Index have generated hammers on daily chart during last two trading session but it still have not slide below its major supportive region of 46,500 points which falls on a trend line which reacted as a major resistance previously and right now its supporting index against bears. Daily Stochastic have entered into bearish zone but MAORSI is resisting against pressure and have not generated bearish signal clearly. Today’s closing below 46,300 would push MAORSI also into bearish zone which would lead index towards 46,100 and 45,900 if succeeded. Weekly double top is still intact and would resist against any bullish rally in coming days. It’s recommended to adopt swing trading strategy until index gave a clear breakout of either side.