PSX Daily Market Review - 10th Dec 2018

Trading volume at PSX floor dropped by 61.23 million shares or 32.27% on DOD basis whereas the Benchmark KSE100 index opened at 38,300.33, posted a day high of 38,651.88 and day low of 37.779.67 during last trading session while session suspended at 38,562.05 points with net change of -261.42 points and net trading volume of 91.39 million shares. Daily trading volume of KSE100 listed companies dropped by 30.06 million shares or 24.75% on DOD basis.
Foreign Investors remained in net buying positions of 0.47 million shares but net value of Foreign Inflow dropped by 0.82 million US Dollars. Categorically, Foreign Individuals remained in net selling positions of 0.02 million shares but Foreign Corporate and Overseas Pakistanis investors remained in net buying positions of 0.32 and 0.17 million shares. While on the other side Local Individuals, Companies and NBFCs remained in net buying positions of 14.19, 0.44 ad 0.08 million shares respectively but Banks, Mutual Funds, Brokers and Insurance Companies remained in net selling positions of 0.92, 10.09, 2.89 and 0.99 million shares.

Global stocks extend slump as global growth worries mount
Global stocks extended their slump on Monday, with U.S. equity futures and Asian shares sliding on worries over slowing growth and fears that a fresh flare-up in tensions between Washington and Beijing could quash chances of a trade deal. S&P futures ESc1 fell 0.8 percent and Dow futures YMc1 lost 0.8 percent in the Asian day. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slid 1.4 percent to a near three-week low. The Shanghai Composite Index .SSEC retreated 0.8 percent. Australian stocks lost 2 percent, brushing its lowest level since December 2016, and South Korea's KOSPI .KS11 fell 1.1 percent.
Summary moved to tax smoky, sugary sins
The government is likely to impose Rs10 sin tax on cigarettes per packet and Rs1 on bottle of sugary beverages, it is learnt reliably here Sunday. "To discourage cigarettes smoking and use of sugary drinks (drinks with sugar including carbonated soft drinks, sport drinks and energy drinks), increasing revenues and saving money by reducing NCDs related health care costs, the ECC is requested to approve the imposition of sin tax on tobacco and sugary drinks proposed," said a summary moved by the Ministry of National Health Services, Regulation and Coordination (NHSRC) for the approval of the Economic Coordination Committee (ECC).
73 Sindh engineers completed training in China
Aiming to create highly skilled human resource from Tharparkar and other districts of Sindh, a group of 73 engineers who were sent to China for training in operation and management of coal power plant have completed their training.
WB projects 13pc increase in remittances to South Asia
TRemittances to South Asia are projected to increase by 13.5 percent to $132 billion in 2018, a stronger pace than the 5.7 percent growth seen in 2017, says the latest edition of the World Bank’s Migration and Development Brief. The upsurge is driven by stronger economic conditions in advanced economies, particularly the United States, and the increase in oil prices having a positive impact on outflows from some GCC countries, such as the United Arab Emirates has reported a 13 percent growth in outflows for the first half of 2018. Bangladesh and Pakistan experienced upticks of 17.9 percent and 6.2 percent in 2018, respectively.
E-commerce growth: Sale value reaches Rs100b mark
Pakistan has witnessed reasonable growth in e-commerce activities over the past few years as sale value of industry was on rise and reached Rs100 billion mark. Lured by lower transaction costs, convenience and expanding internet penetration, both enterprises and consumers have started shifting their transactions online but country still lags behind regional and comparable economies in terms of digitisation of its payment systems and efficiency of its logistics environment. The issues related to e-commerce have been persistent despite increase in its adoptability among the masses and consistent penetration in coverage areas. The industry could move at much faster peace if these issues are fixed on long-term basis by industry players and other stakeholders.

The Benchmark KSE100 Index have tried to bounce back after getting support from a horizontal supportive region which fall on 74.6% correction of previous bullish rally during last trading session but weekly and daily momentum indicators are still in bearish mode and hourly momentum indicators are trying to generate bearish crossovers therefore it’s recommended to stay cautious and start profit taking around 38,760 and 39,300 points in case of a positive spike because if index would not succeed in breakout of 39,300 points then a sharp downward rally could be started which may lead index towards 37,760 and 37,000 points in coming days. Market is expected to remain volatile therefore it’s recommended to stay cautious.