PSX Daily Market Review - 11th Jan 2019

Trading volume at PSX floor dropped by 21.8 million shares or 16.28% on DoD basis, whereas the benchmark KSE100 index opened at 39,023.67, posted a day high of 39,225.55 and a day low of 38,997.55 points during last trading session while session suspended at 39,090.28 with net change of 168.59 points and net trading volume of 66.45 million shares. Daily trading volume of KSE100 listed companies dropped by 30.41 million shares or 31.39% on DoD basis.
Foreign Investors remained in net selling positions of 2.72 million shares and net value of Foreign Inflow dropped by 0.5 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani investors remained in net selling positions of 1.47 and 1.18 million shares. While on the other side Local individuals, Mutual Funds and Brokers remained in net buying positions of 1.47, 1.36 and 8.54 million shares but Local Banks, NBFCs and Insurance Companies remained in net selling positions of 1.5, 0.23 and 1.02 million shares respectively.

Asia stocks at one-month high, focus stays on U.S.-China trade talks
Asian stocks inched higher to one-month highs on Friday, after Federal Reserve Chairman Jerome Powell reiterated the U.S. central bank can be patient on raising interest rates further. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged 0.2 percent higher, while Japan's benchmark Nikkei .N225 advanced 1.1 percent in early trade. Wall Street extended its rally into a fifth straight day on Thursday in a whipsaw trading session as investors responded to mixed comments by Powell, while a warning from Macy’s (M.N) pummeled retail stocks.
Pakistan can manage crisis without IMF: Asad
Federal Minister for Finance Asad Umar Thursday said it was possible for Pakistan to manage its financial crisis and improving its economy without approaching the International Monetary Fund (IMF) for a loan. Talking to a private news channel, he said the Pakistan Tehreek-e-Insaf government was receiving financial package from Saudi Arabia unconditional and on the minimum interest rate, 3 per cent. Replying to a question about inflation in the country, he said the government would not increase prices of electricity and gas for low-income earners. Responding to another question, he said there was huge increase in the country's exports volume in December, but Pakistan’s current dollar reserves, which stand at $7.2 billion, are not enough to repay our foreign loans. Meanwhile, Minister for Finance Asad Umer here on Thursday said that due to corrective measures introduced by the current government for bringing stabilization in national economy, the economic indicators had started showing resilience.
Auto sale sees minor increase
Sale of cars in the country witnessed a minor increase of 0.58 percent during first half of current fiscal year as compared to the same period of previous year. During the period under review, the sale of cars increased from 103,432 units in July-December 2017-18 to 104,038 units in same period of the current fiscal year. According to data released by Pakistan Automotive Manufacturing Association (PAMA), the sale of Honda cars witnessed an increase of 11.02 percent to 21,784 units in first six months of current fiscal year from 19,621 units in same period of last year. Similarly, the sale of Suzuki Swift also increased from 2,141 units to 2,509 units, thus showing an increase of 17.18 percent.
Trade deficit shrinks by 5pc in first half of FY19
The trade deficit of the country has contracted by 5 percent to $16.8 billion in July-December (2018-19) against the deficit of $17.7 billion during same period of the year 2017-18. Government’s policy measures have resulted in shrinking of trade deficit , decline in imports and increase in exports which augurs well for overall balance of payment of the country, said a statement issued by finance ministry here on Thursday. The overall imports from July-December 2018 have shrunk by over 2 percent from $28.7 billion in July–December 2017 to $28 billion in July–December 2018. This trend is even more pronounced in respect of imports under Regulatory Duty (RD) regime, where the import value has declined from $ 5.2 billion in July–December 2017 to $ 4.4 billion in July–December 2018, showing a contraction of 16 percent (effective on 1994 tariff lines).
CDWP recommends 3 mega projects to Ecnec for approval
he Central Development Working Party (CDWP) has recommended 3 mega projects of water resources, health and information technology to Executive Committee of National Economic Council (ECNEC) for its final approval. The CDWP fully recommended second revision of emergency plan for polio eradication worth $986 million to the ECNEC. Chaired by Federal Minister for Planning, Development and Reforms and Deputy Chairman Planning Commission Makhdum Khusro Bakhtyar here Thursday, the CDWP approved emergency plan for polio eradication of $986 million, Nai Gaj Dam worth Rs 46.5 billion and Punjab police integrated command, control and communication worth Rs 17520.408 million, said a statement issued by Ministry for Planning and Reforms.

The Benchmark KSE100 Index is being capped by a horizontal resistance which falls on 50% correction of its last bearish rally and index is not being able to penetrate that region since last three trading sessions. Daily and intraday momentum indicators have turned to bearish side but weekly have entered a strong bullish zone. Today’s closing above 38,500 points would strengthen more this momentum on weekly chart but it’s expected that index would be push back in bearish zone before closing of current trading session. As of now index have major resistant regions ahead at 38,360 and 39,500 points while in case of index would try to find some ground at 38,474 points where a strong horizontal supportive region would try to resist against any bearish sentiment. It’s recommended to stay cautious and stay on selling side at spike instead of initiating new buying.