PSX Daily Market Review - 11th April 2018

Trading volume at PSX floor increased by 17.04 million shares or 8.40% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 46,599.81, posted a day high of 46,674.88 and a day low of 46,407.60 during last trading session. The session suspended at 46,476.73 with net change of -103.89 and net trading volume of 74.86 million shares. Daily trading volume of KSE100 listed companies dropped by 25.73 million shares or 25.58% on DoD basis.
Foreign Investors remained in net selling position of 1.5 million shares but net value of Foreign Inflow increased by 1.78 million US Dollars. Categorically, Foreign Individual remained in net buying positions of 0.09 million shares but Foreign Corporate and Overseas Pakistanis Investors remained in net selling position of 1.44 and 0.16 million shares. While on the other side Local Individuals and NBFCs remained in net buying positions of 11.59 and 0.02 million shares but Local Companies, Banks, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 3.15, 1.24, 1.36, 1.99 and 1.98 million shares respectively.

Global stocks pare gains with next phase of U.S.-China trade saga in focus, euro buoyant
Asian stocks rose modestly on Wednesday, paring earlier gains as optimism that trade ties between Washington and Beijing were on the mend gave way to questions about the next phase of the diplomatic tit-for-tat between the two countries.MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was 0.35 percent higher. It gained 1.2 percent the previous day after a speech by Chinese President Xi Jinping was seen as striking a more conciliatory stance following a week of tit-for-tat tariff threats between Beijing and Washington. The index’s surge lost some steam, however, with some Asian equity markets staggering, as the world’s two biggest economies are still seen needing to clear more hurdles before reaching any sort of settlement over trade issues. “The United States and China are still at a phase in which they are attempting to probe the intentions of the other,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo.
PM seeks Chinese help for power sector uplift
Prime Minister Shahid Khaqan Abbasi on Tuesday invited Chinese investors and companies to participate in the development of Pakistan’s power sector . The prime minister stated this while talking to Administrator of National Energy Administration (NEA) of China, Nuer Baikeli, who called on him on the sidelines of BOAO Forum for Asia, a statement issued by the PM House here said. The prime minister expressed the hope to further strengthening cooperation with the National Energy Administration of China and the government of Pakistan. Appreciating the contribution rendered by CPEC energy projects in alleviating the energy shortage in Pakistan, the prime minister thanked the Chinese government and NEA for their strong support and collaboration. He said that these projects were providing efficient and affordable electricity and both sides were continuing to work on other projects based on hydropower in north of Pakistan and local coal in Thar district of south.He also indicated the need of early completion and synchronization of transmission line of South-North with the upcoming generation projects in Karachi and Thar.
Nepra to investigate unscheduled power outages in Karachi
Taking serious notice of additional 10 hours unscheduled loadshedding in Karachi, National Electric Power Regulatory Authority (NEPRA) Tuesday constituted a high level committee to probe the matter. In view of extended loadshedding in different parts of Karachi, NEPRA has directed K-Electric, the company responsible for the electricity supply, to submit a detailed report on the issue, said the NEPRA spokesman here. The clarifications rendered by K-Electric were unsatisfactory therefore NEPRA has constituted a high level committee to visit K-Electric and investigate the issue, the spokesman said. The five-member committee constituted by NEPRA includes Husnain Zegham, senior advisor technical, Masood Akhter, DG consultant (M&E), Hafiz Irfan Ahmad, senior advisor (standards), Husnain Gohar, AD (Technical), Junaid Ahmad, AD (Standards-II). NEPRA team is scheduled to visit K-Electric from April 11 to April 13, 2018 and will probe the matter of extended loadshedding during the prevailing harsh weather.
Govt rules out loans from int’l capital market
The federal government has ruled out the possibility of raising loans from the international capital market by issuing bonds within ongoing fiscal year after announcing an amnesty scheme that may generate few billion of dollars. Advisor to Prime Minister on Finance Dr Miftah Ismail has dismissed the possibility of raising loans from the international capital market by issuing bonds due to high interest rate. Another official informed that there would be no need for the government to launch the bond in international market after announcement of amnesty scheme. “It will be major success for the government if the scheme helps in generating $4 to $5 billion within next two and a half months,” he added. The federal government is in need of dollars to build its foreign exchange reserves that are tumbling due to the repayment on previous loans and widening current account deficit of the country. The foreign exchange reserves held by State Bank of Pakistan (SBP) have come down to $11.6 billion. Meanwhile, the government would have to repay $2.5 billion to the previous loans within ongoing financial year. The current account deficit is expected to widen to $15.7 billion (4.8 percent of GDP) this year. The country’s current account deficit widened by 50% to stand at $10.83 billion during eight months (July to February) of the current fiscal year, compared with $7.22 billion in the same period of previous year.
Punjab okays four uplift schemes
The Punjab Provincial Development Working Party (PDWP) Tuesday approved four development schemes of various sectors with an estimated cost of Rs1298.325m. The approved schemes are: construction of various schemes for Hafizabad district at the cost of Rs 90.268m, construction of 3 connecting roads to Kolo Tarrar Village in Hafizabad district at the cost of Rs45.633m, widening and improvement of road from MDA Chowk to Dera Adda Chowk, Multan (Dual Carriageway) at the cost of Rs 574.721m and construction of flyover at Jhal Road, Railway Crossing to Sahiwal at the cost of Rs587.703m.
Market is expected to remain volatile therefore it'ss recommended to stay cautious while trading today.

The Benchmark KSE100 Index is moving downward gradually after completing its 61.8% correction and posting double top on weekly chart during last three trading session. But it’s still being supported by a descending trend line on daily chart and the bearish trend would not become evident until index would slide below that line, once index would close below that trend line then said line would start reacting as a resistant region for the index. Daily Momentum have changed to bearish while weekly stochastic is trying to generate a bearish crossover and if succeeded then a major shift in market trend would be witnessed. Its recommended to stay cautious while trading during current trading session because index is caged between strong supports and resistances and breakout of either side would call for a further 1000 points move.