PSX Daily Market Review - 11th June 2018

Trading volume at PSX floor increased by 3.78 million shares or 1.69% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 44,178.85, posted a day high of 44,332.86 and a day low of 43,894.34 during last trading session. The session suspended at 43,948.11 with net change of -196.09 and net trading volume of 169.88 million shares. Daily trading volume of KSE100 listed companies increased by 10.95 million shares or 6.89% on DoD basis.
Foreign Investors remained in net buying position of 8.58 million shares but net value of Foreign Inflow dropped by 0.36 million US Dollars. Categorically, Foreign Individuals, Foreign Corporate and Overseas Pakistanis investors remained in net buying positions of 0.53, 3.13 and 4.93 million shares. While on the other side Local Individuals, NBFCs and Mutual Fund remained in net buying positions of 3.53, 0.28 and 10.05 million shares but Local Companies, Banks, Brokers and Insurance Companies remained in net selling positions of 8.18, 5.51, 34.68 and 7.67 million shares respectively.

Asia stocks edge up after G7; summit, central bank meetings eyed
Asia stocks shook off initial modest losses and edged up on Monday ahead of a U.S.-North Korea summit that might ease regional tensions, while investors also started to focus on key central bank meetings later this week. Stocks dipped after U.S. President Donald Trump backed out of a joint Group of Seven communique over the weekend, in a blow to the group’s efforts to show a united front. The S&P 500 futures ESc1 were down 0.1 percent after dropping as much as 0.3 percent. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped early but was last up 0.15 percent. Hong Kong's Hang Seng .HSI gained 0.3 percent while the Shanghai Composite Index .SSEC fell 0.5 percent. South Korea's KOSPI .KS11 added 0.4 percent, and Japan's Nikkei .N225 climbed 0.3 percent.
Port Qasim project to help end power crisis
Port Qasim Power Project (PQPP) is one of the early harvest energy projects under CPEC has potential to generate 9 billion kilowatt/hour of electricity annually, effectively mitigating the loadshedding in Pakistan and producing tremendous economic and social benefits. During the implementation of the project, Power China Resources Ltd. (PCR) has followed the principle of "joint construction through consultation for mutual benefits" by sharing advanced technologies and training local talents, said a statement of Chinese Embassy. Pakistani workers accounting for 60% of the whole staff are the primary workforce at the plant. To meet the needs of local operation, PCR employed 100 Pakistani college graduates in 2016 and sent them to China for thermal power technology training for free. Now these workers have taken up key positions and become the main force for power plant operation and maintenance.
Public complaints about real estate sector
In a public hearing conducted by the Competition Commission of Pakistan in Lahore, a large number of public complaints were placed before it and discussed. The role of Lahore Development Authority as a 'developer' rather than a 'regulator' was the moot point, with a perception that no one monitors the malpractices being committed in the Real Estate business. Another inferable apprehension was that some black sheep housed in the Lahore Development Authority are indulging in malpractices which, ostensibly, lead to encouragement and influx of illegal Housing Schemes in Lahore as well asin its extended areas; thereby deceiving the public at large through deceptive marketing practices.
ECC gives tax reliefs to Tapi, RLNG projects
In a major development the federal government has granted billion of rupees income tax, sales tax and custom duties exemptions, to cross borders Iran Pakistan and Turkmenistan Afghanistan, Pakistan India (TAPI) gas pipeline projects. The exemption granted by the Economic Coordination Committee of the Cabinet would also be available to RLNG III Pipeline project (RLNG-III) or any other project declared as Large Diameter Gas Pipeline Project by the Ministry of Energy Petroleum Division. Similarly exemption from custom duty in excess of 10 percent ad valorem leviable under the First schedule to the Customs Act 1969 and whole of sales tax leviable under the Sales Tax Act 1990 on import and subsequent supply of plant, machinery, equipments, materials, specialized vehicles or vessels, accessories, spares, chemicals consumable as are locally manufactured by developers, contractor and service companies of above projects was also requested by Petroleum Division.
Bhasha, Mohmand Dams get Rs25b to start construction
The government has made special allocation to start construction of Bhasha Dam and Mohmand Dam and enhanced water sector allocation from Rs 36 billion to Rs 65 billion for next fiscal year. Pakistan is facing acute water scarcity requiring special interventions and that was why authorities concerned increased allocation to conserve water and its augmentation during 2018-19. The Annual Development Plan (ADP), highlighting initiatives under Public Sector Development Programme for next fiscal, on Sunday showed that to start construction of Bhasha Dam and Mohmand Dam, Rs 23 billion and Rs 2 billion have been earmarked respectively.

The Benchmark KSE100 Index has completed its 50% correction on daily chart and right now it’s getting resistances from a horizontal resistant region which is falling on said correction level. Daily Momentum indicators are ready to start a new bearish journey because Stochastic have generated a bearish crossover over while MAORSI is ready for that. This week 44,116 and 44,460 points would react as crucial levels and these both levels would try to push index towards 43,580 points where index could find support from a horizontal supportive region, but daily closing below 43,585 would call for a negative trend towards 42,900 points, mean while if index would succeed in penetrating 44,460 points then next targets could be 44,950 and 45,016 points. For current trading session its recommended to initiate selling on strength with strict stop loss.