PSX Daily Market Review - 11th Oct 2018

Trading volume at PSX floor dropped by 25.79 million shares or 11.46% on DoD basis, whereas the Benchmark KSE100 index opened at 38,551.30, posted a day high of 38,823.84 and day low of 37,894.09 points while the session suspended at 38,792.09 with net change of 287.25 points and net trading volume of 112.57 million shares. Daily trading volume of KSE100 listed companies dropped by 12.47 million shares or 9.97% on DoD basis.
Foreign Investors remained in net selling position of 10.43 million shares and net value of Foreign Inflow dropped by 1.04 million US Dollars. Categorically, Foreign Individuals, Corporate and Overseas Pakistanis investors remained in net selling positions of 0.09, 8.33 and 2.01 million shares. While on the other side Local Individuals, NBFCs, Mutual Fund and Brokers remained in net buying positions of 4.71, 0.02, 7.17 and 1.00 million shares but Local Companies, banks and Insurance Companies remained in net selling positions of 0.55, 3.34 and 0.32 million shares respectively.

Asia shares shattered by Wall Street rout, China's yuan under fire
Asian share markets sank in a sea of red on Thursday after Wall Street suffered its worst drubbing in eight months, a conflagration of wealth that could threaten business confidence and investment across the globe. It also raised the stakes for U.S. inflation figures due later on Thursday as a high outcome would only stoke speculation of more aggressive rate hikes from the Federal Reserve. Dealers could find no single trigger for the scare, more a confluence of factors. “Equity markets are locked in a sharp sell-off, with concern around how far yields will rise, warnings from the IMF about financial stability risks and continued trade tension all driving uncertainty,” summed up analysts at ANZ. MSCI’s broadest index of Asia-Pacific shares outside Japan shed 2.7 percent to its lowest in 18 months.
Bids submission date extended till Nov 12 for 10 exploration blocks
Ministry of Energy Petroleum Division has extended bids submission date till November 12 for award of 10 exploration blocks in different oil and gas potential areas. The date has been extended to facilitate interested oil and gas Exploration and Production (E&P) companies, who could not submit their bids for the blocks due to certain reasons, official sources told APP. With the award of 10 more exploration blocks, they said, the country would witness a remarkable increase in oil and gas exploration activities, which would help meet ever-increasing energy demand. The sources said 10 blocks, including 2972-6 (Cholistan), 3072-8 (Shakar Ganj West, 3073-5 (Punjab),3069-10 (Musakhel), 2762-1 (Desert), 3068-3 (Block 28 North), 3269-1 (Wali West), 2768-13 (Sorah), 2567-12 (Taung) and 2667-9 (Khuzdar South), would be awarded to successful bidders through a transparent process.
Trade deficit cut by 1.63pc in first quarter
Pakistan’s trade deficit has slightly narrowed by 1.61 percent in first quarter (July to September) of the current fiscal year that may eases pressure on the tumbling foreign exchange reserves of the country. The country’s trade deficit has recorded at $8.9 billion during July-September period of the ongoing financial year as against $9.01 billion of corresponding period of previous year, showing a minor decline of 1.61 percent. Trade deficit has controlled due to the unexpected increase in exports as against the imports, according to the latest data of Pakistan Bureau of Statistics (PBS).
Water shortage to affect cotton yield adversely in Punjab, Sindh
Due to shortage of water during Kharif season, Punjab could miss over 15 percent while Sindh could have 32 per cent lesser yield of cotton, Senate Standing Committee on Food Security was told on Wednesday. The committee was informed that extraordinary shortage of water during Kharif season had adversely affected cotton sowing. However, Punjab achieved 85 percent of the target and Sindh achieved 68 percent of the target.
Asad Umar meets WB president, Indonesian finance minister
Minister for Finance, Asad Umar Wednesday held a number of meetings on the sidelines of the World Bank/IMF Group Annual meetings in Bali, Indonesia and discussed matters of mutual interests. Talking to his Indonesian counterpart Sri Mulyani Indrawati he called upon Indonesia to expedite the process of ratification of the additional tariff lines granted to Pakistan after comprehensive review of the Preferential Trade Agreement (PTA) in 2017.

ATRL, PSO, DGKC, MLCF and SSGC would try to lead bullish momentum during current trading session.

The Benchmark KSE100 Index have bounced back after getting support from a strong horizontal supportive region continuously for third trading session but could not succeeded in penetration of its major resistant region of 39,086 points in upward direction during last trading session. As of now daily momentum indicators have generated bullish crossovers and it’s an indication that index would try to take a spike towards its resistant regions of 39,086 and 39,600 points, but for a sharp spike towards 39,600 index need to close above 39,086 points on daily chart otherwise intraday pressure and volatility could be witnessed. It’s recommended to stay cautious during current trading session and initiate trades with strict stop loss.
As now ATRL would try to take a spike towards 132 Rs, while PSO and DGKC would continue their bullish rallies towards 244 and 93 Rs. MLCF would try to join this bullish sentiment to achieve 41.80 if it would succeed in penetrating above 39.70.