PSX Daily Market Review - 11th Sep 2019

Trading volume at PSX floor dropped by 98.33 million shares or 67.10% on DoD basis, whereas the benchmark KSE100 index opened at 30,214.77, posted a day high of 30,550.93 and a day low of30,011.50 points during last trading session while session suspended at 30,467.20 points with net change of 252.43 points and net trading volume of 38.43 million shares. Daily trading volume of KSE100 listed companies dropped by 73.16 million shares or 65.61% on DoD basis.
Foreign Investors remained in net selling positions of 4.66 million shares but net value of Foreign Increased by 0.13 million US Dollars. Categorically, Foreign Individuals & Overseas Pakistanis remained in net selling positions of 3.03 and 2.04 million shares but Foreign Corporate Investors remained in net long positions of 0.34 million shares. While on the other side Local Individuals, Companies and Insurance Companies remained in net long positions of 6.53, 0.2 and 0.48 million shares but Local Banks, Mutual Funds and Brokers remained in net selling positions of 1.2, 6.63 and 0.84 million shares respectively.

Bond yields, stock prices supported ahead of central bank meetings
Asian stock markets held firm and bond yields rose on Wednesday as hopes of diminishing U.S.-China tensions and reduced risk of no-deal Brexit prompted investors to take profit in risk-off trade ahead of key central bank policy meetings.In early trade, MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.10% while Japan’s Nikkei rose 0.32%. On Wall Street, the S&P 500 ended little changed as a rally in energy and industrial shares countered a drop in the technology and real-estate sectors with investors favoring value over growth.
China expedites work on Matiari-Lahore transmission line
China has expedited its initial work on $1.7 billion worth Matiari-Lahore high-voltage direct current transmission line project. To kick off the project, a Chinese company has shipped power equipment to Pakistan for the country’s first transmission project under the China-Pakistan Economic Corridor (CPEC) framework. Fushun Electric Porcelain Manufacturing Company shipped 30 tons of direct current (DC) 660 kilovolts of Zinc Oxide Lightning Cooler to Pakistan for its grid project. Wang Youxue, member of the Party Work Committee of the Shen Fu New District of China’s Liaoning province said that the Fushun Electric Porcelain Manufacturing Company participated in the project as it was one of the key cooperation projects of the belt and road Initiative.
Durable, sustainable economic stability prerequisite for survival of country
Senior Vice President SAARC Chamber of Commerce and Industry and founder Chairman Pak US Business Council Iftikhar Ali Malik Monday said that sustainable and durable economic stability is prerequisite for survival of the country and strengthening of democracy. In a press statement issued here, he said that the PTI government should take all stakeholders into confidence to tailor a viable strategy to evolve new result and growth oriented judicious economic policies on war footings for the revival of economy. He said despite the categorical assurance of Prime Minister Imran Khan, Federation of Pakistan Chamber of Commerce and Industry and other top leaders of corporate sector are not being taken on board by all policy and decision makers.
Govt finalises plan to increase power generation capacity by three times
The government plans to increase the country’s power generation capacity by almost 300 per cent in next 20 years to 111,000 megawatts and phase out almost all of the existing thermal power plants to meet rising energy demand at affordable costs. The move is part of the Indicative Generation Capacity Expansion Plan (IGCEP) 2018-40 finalised by the National Transmission and Despatch Company in consultation with all the federal and provincial agencies and private sector consultants to ensure low-cost development of future projects and to comply with regulator’s Grid Code obligations. The IGCEP 2018-40 represents the first complete iteration of an integrated planning exercise for the power sector of the country and will be revised every year on the basis of ground realities including growth trajectory, consumption patterns and completion or delays in projects to ensure regulatory compliance.
KP approves Rs133m to help women entrepreneurs
The Khyber Pakthunkhwa government has approved a mega project worth Rs133.367 million to help women entrepreneurs associated with garments sector in the province. The approval was given by Provincial Working Development Party (PWDP) after the project was pending for the last three years in the province. Official sources said on Monday that PWDP has approved Rs133 out of Rs367 million for this long awaited project and hoped that the Finance Department would soon issue necessary funding for it. During last fiscal year, Rs34.990 million had been released for expenditure of this project whereas Rs 30 million was allocated for it in current fiscal year. This project after completion would benefit thousands of women besides alleviate poverty and generate employment opportunities especially in rural areas of the province.

The Benchmark KSE100 index is caged in a triangle on daily chart and right now it's moving after retesting its supportive trend line of said triangle therefore it's expected that index would try to take a spike towards 30,860 points on intraday basis if it would succeed in penetration above its initial resistant region of 30,550 points. while on flipside if it would not succeed in penetration above 30,550 points on hourly basis then a dip could be witnessed which may lead index towards 30,200 & 29,700 points. It's recommended to stay on long side and start adding fresh positions if index would succeed in penetration above 30,550 points. Daily momentum indicators are in positive mode while hourly stochastic and MAORSI both have generated bullish crossovers on same time therefore these both would try to lead index in positive zone during current trading session.

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