PSX Daily Market Review - 11th May 2018

Trading volume at PSX floor increased by 4.42 million shares or 2.30% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 43,877.06, posted a day high of 44,132.41 and a day low of 43,741.77 during last trading session. The session suspended at 43,855.78 with net change of 60.78 and net trading volume of 74.29 million shares. Daily trading volume of KSE100 listed companies dropped by 6.38 million shares or 7.91% on DoD basis.
Foreign Investors remained in net buying position of 0.93 million shares and net value of Foreign Inflow increased by 2.40 million US Dollars. Categorically, Foreign Individuals and Foreign Corporate remained in net buying positions of 0.01 and 1.10 million shares but Overseas Pakistanis Investors remained in net selling positions of 0.19 million shares. While on the other side Local Individuals, Local Companies, Banks and NBFCs remained in net buying positions of 6.40, 0.55, 1.91 and 0.02 million shares but Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 2.05, 9.42 and 0.73 million shares respectively.

Asian stocks near three-week top, dollar eases after U.S. inflation
Asian markets started on a firm footing and the dollar eased on Friday as softer-than-forecast U.S. inflation data tempered expectations for faster Federal Reserve interest rate rises this year. MSCI’s broadest index of Asia-Pacific shares outside Japan rose for a second straight session to near three-week highs. Japan’s Nikkei climbed 0.7 percent while South Korea’s KOSPI added 0.6 percent. Australian and New Zealand shares were both up 0.2 percent. On Wall Street, the Dow rose 0.8 percent, the Nasdaq Composite gained 0.89 percent and the S&P 500 rose 0.9 percent, surging past key resistance of 2,717 points.
MPs approve GIDC (Amend) Bill
Senate Standing Committee on Petroleum Thursday approved "Gas Infrastructure Development Cess (Amendment) Bill, 2018" with certain amendments which will enable the CNG stations to pay half (Rs 12 billion) of the GIDC outstanding amount to the government. The meeting of the committee was held here under the chairmanship of Senator Mohsin Aziz. Mohsin said that the committee would deal with petroleum related issues of less developed areas in Balochistan and Khyber Pakhtunkhwa on priority basis. He informed the members about the background of the GIDC Amendment Bill and the committee approved the Bill with certain amendments. The committee was informed that the CNG stations had collected the GIDC as per notified tariff of Oil and Gas Regulatory Authority (Ogra), but did not pay to the government. However now the petroleum division has informed the committee that the CNG association has agreed to pay approximately half of the amount payable pertaining to the period from January 1 to May 22, 2015 amounting Rs 12 billion. Now the CNG station will pay GIDC through SNGPL or SSGCL.
Overseas Pakistanis remit $16.25b in ten months
Overseas Pakistani workers remitted $16257 million in the first ten months (July to April) of FY18, showing a growth of 3.92 percent compared with US $15643.97 million received during the same period in the preceding year. During April 2018, the inflow of workers’ remittances amounted to $1650.59 million, which is 6.89 percent lower than March 2018 and 7.25pc higher than April 2017. The country-wise details for the month of April 2018 showed that inflows from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman) and EU countries amounted to $399.56 million, $358.28 million, $240.39 million, $232.58 million, $167.68 million and $54.74 million respectively compared with the inflow of $439.13 million, $344.01 million, $199.69 million, $191.62 million, $175.18 million and $41.89 million respectively in April 2017. Remittances received from Malaysia, Norway, Switzerland, Australia, Canada, Japan and other countries during April 2018 amounted to $197.36 million together as against $147.42 million received in April 2017.
Pakistan profitable market for foreign investors: Minister
Federal Minister for Commerce and Textile, Muhammad Pervaiz Malik on Thursday said that Pakistan is a profitable market and investors from Azerbaijan should take full advantage of it by investing in different sectors. In a meeting with Ambassador of Republic of Azerbaijan to Pakistan Ali Alizada, the minister said Pakistani government and Ministry of Commerce & Textile will provide full support to the foreign investors. The minister said that there exists great potential between the two countries but the bilateral trade is not a true reflection of that. He said that trade volume between the two countries has declined from $58.26 million in 2015-16 to $26.88 million in 2016-17 and a concerted effort is needed on both sides to increase the trade volume and economic cooperation. "The decrease in Pakistan's exports to Azerbaijan in 2016-17 is mainly due to decline in export of rice to Azerbaijan from $45 million to $ 21.1 million", he added.
Senate committees elect chairmen in inaugural meetings
Another three committees of Senate Thursday formally elected their chairpersons in inaugural meetings at the Parliament House. Senator Mohsin Aziz, Senator Mushtaq Ahmed and Senator Talha Mehmood were elected as chairmen of Senate Standing Committees on Petroleum, Science and Technology and Cabinet Secretariat respectively. Senator Mohsin Aziz's name was proposed by Senator Mir Kabeer Ahmed Shahi. While chairing the committee, he said that the committee will deal with petroleum related issues of less developed areas in Balochistan and Khyber Pakhtunkhwa on priority basis.

The Benchmark KSE100 Index have tried to bounce back yesterday after posting day low at a horizontal supportive region and an intraday pull back was witnessed at day end. As of now index have resistant regions ahead at 43,990 and 44,510 and these are the same regions which have supported index while it was sliding down and now these regions would try to add pressure on index in case of reversal. It’s expected that index may take a spike towards 43,990 points during current trading session and if it would not become able to penetrate that region then a new bearish rally would be witnessed today. It’s recommended to initiate selling on strength with strict stop loss of 44,330 on intraday basis. Index would remain bearish until it close above 44,530 points on daily chart.