PSX Daily Market Review - 11th July 2017

Foreign investors remained in a net selling position of 5.06 million shares and the net value of Foreign Inflow dropped by 4.5 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani investors remained in net selling positions of 2.6 and 2.47 million shares respectively but Foreign individuals remained in a net buying position of 10600 shares. While on the other side, Local Individuals, Companies, Banks and NBFCs remained in net selling positions of 41.68, 4.54, 2.83 and 0.85 million shares respectively, but Mutual Funds and Brokers remained in net buying positions of 38.48 million shares.

Asian shares and the dollar cautiously edged higher on Tuesday, as investors awaited testimony from Federal Reserve Chair Janet Yellen for clues on when the central bank would tighten U.S. monetary policy. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged a few points higher in early trading, with sentiment underpinned by technology-led gains on Wall Street. Japanese Nikkei stock index .N225 was up 0.1 percent, while Australian shares slipped 0.2 percent.
For the first time in 13 years, remittances recorded a year-on-year drop in 2016-17, data released by the State Bank of Pakistan (SBP) showed on Monday. Remittances declined 3.08 per cent to $19.3 billion in the last fiscal year, sending a warning signal to the government that already faces tough challenges on the external front. In absolute terms, the decline of $613 million does not seem to be significant. But the year-on-year drop marks a change in the long-term trend as remittances kept increasing for well over a decade. Inflows recorded a growth of 6.36pc in 2015-16 even though the oil price crisis was at its peak.
Pakistan says it could become one of the world’s top-five buyers of liquefied natural gas (LNG), with Petroleum Minister Shahid Abbasi predicting imports could jump more than five-fold as private firms build new LNG terminals. Outlining Pakistan’s ambitious plans ─ which, if fully implemented, could shake up the global LNG market – Mr Abbasi said that imports could top 30 million tonnes by 2022, up from just 4.5m tonnes currently.
The Executive Committee of the National Economic Council (Ecnec) on Monday approved a total of 11 development projects with an estimated cost of about Rs235bn. Finance Minister Ishaq Dar presided the meeting attended by representatives of the provincial governments and federal ministries concerned. The projects were earlier cleared by the Central Development Working Party (CDWP) on technical basis.
The Natio­nal Assembly Standing Committee on Petroleum and Natural Resources on Monday recommended the Oil and Gas Regulatory Authority (Ogra) to increase the number of new domestic gas connections to one million per year. The committee, chaired by MNA Chaudhry Bilal Ahmad Virk, also recommended enhancement of domestic connections to new localities by 100 connections. The committee was apprised that Ogra had allowed 0.5 million new domestic connections to gas distribution companies per year. However, due to huge number of pendency, the gas companies were unable to meet the demand.

The Market is expected to remain volatile today. We advise Traders to exercise caution. Buying on dips and booking gains on strength is recommended.

The Benchmark KSE100 Index penetrated its bearish trend channel in bullish direction while daily stochastic and MAORSI have succeeded in generating bullish crossovers on daily chart and touched its double top on daily chart. For current trading session, the Index needs a positive gap opening above its double top to move further upside, opening above 46345 could call for an intraday rally towards 46850 and 47200 where it may face resistance from a bearish trend line and a horizontal resistant region. Supportive regions for the current trading session lies between 45700 and 45540 points therefore trading with strict stop loss is recommended.