PSX Daily Market Review - 11th Sep 2018

Trading volume at PSX floor dropped by 8.31 million shares or 6.88% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 40,860.60, posted a day high of 40,927.22 and a day low of 40,369.17 during last trading session. The session suspended at 40,684.05 with net change of -170.72 and net trading volume of 60.27 million shares. Daily trading volume of KSE100 listed companies dropped by 9.78 million shares or 13.96% on DoD basis.
Foreign Investors remain in net buying positions of 1.37 million shares but net value of Foreign Inflow dropped by 0.70 million US Dollars. Categorically Foreign Individuals and Overseas Pakistanis remained in net buying positions of 0.03 and 2.55 million shares but Foreign Corporate investors remained in net selling positions of 1.21 million shares. While on the other side Local Individuals, Local Companies and Brokers remained in net selling positions of 2.11, 1.73 and 0.89 million shares respectively but Banks, NBFCs, Mutual Fund and Insurance Companies remained in net buying positions of 0.71, 0.54, 0.60 and 1.30 million shares.

Asia shares relieved by trade lull, sterling up on Brexit deal hopes
Asian shares were struggling to snap an eight-session losing streak on Tuesday as investors decided no news was good news on tariffs, while the pound touched a five-week top on hints a Brexit deal might be nearer. MSCI’s broadest index of Asia-Pacific shares outside Japan wavered either side of flat having hit its lowest since July last year on Monday. Japan’s Nikkei fared better on the back of a softer yen and climbed 0.6 percent. Having warned last week that he was ready to levy additional taxes on practically all Chinese imports, U.S. President Donald Trump was uncharacteristically quiet on trade on Monday. “Although the end of the $200bn consultation period ended without much clarity, there was no very strong escalation and APAC equities had declined significantly into the event,” wrote analysts at JPMorgan in a note.
ECC refers gas price decision to PM
he Economic Coordination Committee (ECC) of Cabinet Monday deferred a difficult decision on increase in gas prices and referred the matter to Prime Minister Imran Khan. The Oil and Gas Regulatory Authority (OGRA) determined 46 percent increase in natural gas price. PM Khan last week gave go-ahead to increase the prices and linked it with the approval of ECC. The ECC that met with Finance Minister Asad Umar in the chair on Monday decided that the PM would decide if gas price would be increased or not. Talking to the media, Federal Information Minister Fawad Hussain said that final decision of increasing gas prices will be taken by PM Khan.
Rs120b burden will be transferred to power consumers
The National Electric Power Regulatory Authority (Nepra) has completed the process of tariff determinations for six Discos and allowed Prior Year Adjustment (PYA) to the ex-WAPDA Discos which will enable them to transfer the burden of Rs 120 billion to the electricity consumers. It is pertinent to mention here that earlier this month NEPRA allowed PYA to four Discos including Islamabad Electric Supply Company (Iesco), Lahore Electric Supply Company (Lesco), Faisalabad Electric Supply Company (Fesco) and Tribal Electric Supply. The remaining six Discos sought PYA against capacity payments, operations and maintenance, use of system charges and transmission and distribution losses other than fuel component. Last week, the regulator heard the request for six Discos from PESCO, HESCO, SEPCO, GEPCO, MEPCO and QESCO. Mepco sought PYA of Rs23.50 billion, Pesco Rs17.839 billion, Hesco Rs15.453 billion, Sepco Rs6.158 billion, Gepco Rs10.464 billion and Qesco Rs9.9 billion.
Textile Asia-2018 ends with signing of JVs worth $175m
Asia's biggest international trade exhibition, Textile Asia-2018 concluded here on Monday with agreements of joint ventures (JVs) worth $175 million. The exhibition was jointly organised by Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) and E-commerce Gateway here at Lahore Expo Centre. PCJCCI President SM Naveed and E-Commerce Gateway President Dr Khursheed Nizam were chief guests at the closing ceremony. Addressing the ceremony, Dr Khursheed said that more than 55,000 people visited the trade fair from different sectors of textile industry during the last three days. A number of MoUs worth US$175 million in total had been signed for joint ventures, which would definitely help develop the textile sector in Pakistan on modern lines, he added.
OGDC discovers oil, gas in Kohat
Oil and Gas Development Company Ltd (OGDC), operator of the Chanda — development and production lease — with joint venture partners Gov¬ern¬¬ment Holdings Private Ltd (GHPL) and Zaver Pet¬roleum Corporation Ltd (ZPCL) has discovered crude oil and gas from its exploratory well Chanda No. 1, located in district Kohat, Khyber Pakhtun¬khwa. The well has tested 7,000 barrels per day of crude oil and 2.2 million standard cubic feet per day of gas through 32/64² choke at well head flowing pressure of 1150-1200 Psi from Hangu and Lumshiwal formation.

The Benchmark KSE100 Index is about to complete 61.8% correction of its last bullish rally which was started from 38,561 and continued till 43,638 points on daily and weekly chart. While at the same region where correction is being fulfilled index is being supported by two more supportive elements, initially, a descending trend line which was previously acting as a strong resistance is going to support the index along with a strong horizontal supportive region and all these supportive regions are standing around 40,566 points. Therefore it’s expected that index would find some real ground or support at this region. It’s expected that index would try to bounce back from this region towards 41,000 and 41,300 points. It’s recommended to post stop loss at 41,140 points for new buying which could be initiated for short term trading before 40,566 points. As of now index would face strong resistances at 41,300 and 41,600 points during current trading session.