PSX Daily Market Review - 12th April 2018

Trading volume at PSX floor increased by 64.55 million shares or 29.36% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 46,557.41, posted a day high of 46,755.65 and a day low of 46,476.44 during last trading session. The session suspended at 46,486.49 with net change of 9.76 and net trading volume of 106.35 million shares. Daily trading volume of KSE100 listed companies increased by 31.49 million shares or 42.06% on DoD basis.
Foreign Investors remained in net buying position of 0.9 million shares and net value of Foreign Inflow increased by 1.35 million US Dollars. Categorically, Overseas Pakistanis remained in net buying positions of 2.62 million shares but Foreign Individual and Foreign Corporate Investors remained in net selling position of 0.12 and 1.60 million shares. While on the other side Local Individuals, NBFCs, Mutual Fund and Brokers remained in net buying positions of 2.77, 0.77, 4.37 and 3.58 million shares but Local Companies, Banks, and Insurance Companies remained in net selling positions of 2.02, 8.59 and 1.55 million shares respectively.

Asian stocks on edge, oil soars on escalating Middle East tensions
Asian stocks came under pressure on Thursday as the threat of imminent U.S. military action in Syria rattled investors and sent oil prices to their highest levels since late 2014 on concerns about supply.MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.05 percent in early trade while Japan's Nikkei .N225 dropped 0.4 percent. On Wednesday, the S&P 500 .SPX lost 0.55 percent and the Nasdaq Composite .IXIC dropped 0.36 percent while energy shares .SPNY gained more than 1 percent on rising oil prices. Trump declared that missiles “will be coming” in Syria, taunting Russia for supporting Syrian President Bashar al-Assad after a suspected chemical attack on rebels. Damascus and Moscow have denied any responsibility. His comments raised the prospect of direct conflict over Syria for the first time between the two world powers backing opposing sides in the seven-year-old civil war, which has also escalated a rivalry between Saudi Arabia and Iran. “Last year Russia and Syria did not shoot back against U.S. missiles. But this time the scale of possible attacks by the U.S. and possibly its allies seems larger. If Russia fires back, the war front will be bigger,” said Hidenori Suezawa, financial market analyst at SMBC Nikko Securities.
Balochistan being neglected in CPEC, says Bizenjo
Balochis­tan Chief Minister Mir Abdul Quddus Bizenjo said on Wednesday that his province was being neglected by the federal government in the China-Pakistan Econo­mic Corridor (CPEC) project. “More than Rs5,000 billion is being spent on the CPEC, but Balochistan is not receiving even one per cent of it,” he said while speaking at the Meet the Press programme at the National Press Club. He said a major portion of the CPEC fell in Balochistan, but the people of the province were ignored in development activities being made under the project. “We have to see what benefit the people of Balochistan will get from the CPEC,” he added. “I am collecting the record of the CPEC to ascertain what benefit will be given to our people in the grand project which is being executed in the name of Balochistan,” he maintained.
ADB sees growth rising to 5.6pc
Pakistan’s gross domestic product (GDP) growth is expected to accelerate to 5.6 per cent on strong prospects for large-scale manufacturing and crop harvests for a second year in a row. However, this GDP growth is expected to adjust downward in 2018-19 to 5.1pc as balance of payment constraints seem to outweigh improvements to supply-side factors such as better security and energy supply, cautions the ADB’s ‘Asian Development Outlook 2018’ released on Wednesday. According to the outlook, the continued buoyant domestic demand including from the China-Pakistan Economic Corridor (CPEC) and other infrastructure investments, strengthened economic growth globally that will revive exports, much improved power supply, and commodity prices which are still broadly favourble despite a further double-digit increase in the oil prices. “Pakistan’s economic prospects in the coming years remain positive if budget and current account deficits are reduced and exports are rejuvenated by improving the country’s competitiveness,” ADB Country Director for Pakistan, Xiaohong Yang said.
FWO to lay oil pipeline from Lahore to Peshawar
Frontier Work Organisation (FWO) has Wednesday informed Oil & Gas Regulatory Authority (OGRA) that it will lay an oil pipeline from Lahore to Peshawar by 2020 with an estimated cost of $ 370 million. In a public hearing at Ogra, FWO bid to get licence for its oil pipeline project received wide support from the stakeholders including Khyber Pakhtunkhwa government, oil industry such as Hascol, Attock Oil Refinery and other stakeholders. A public hearing was held by Ogra regarding the grant of licence to FWO for construction of oil pipeline from Machike (near Lahore) to Tarujabba (Peshawar) with an estimated project cost of $370 million. In a public hearing, KP government termed the second option of oil pipeline, via GT Road, expensive, time consuming, hazardous and uncertain and supported FWO plan for the execution of oil pipeline from Lahore to Peshawar. Except state owned entity Interstate Gas System (ISGS) no other oil sector company or stakeholder has opposed the project. FWO presented the project and stated that the project will cater for the growing fuel demands of KP. The project will not only help to improve carbon emission and improve environment but will also uplift the economic condition of general public by creating thousands of job opportunity. Representative of FWO assured that the project will be completed in record two years time.
Pakistan, Kuwait Fund sign loan accord
Pakistan and the Kuwait Fund on Wednesday signed Supplementary Loan Agreement of KD 4.5 million (equivalent to $1500million) for Golen Gol Hydropower Project. The State of Kuwait has already been co-financing this project with an amount of KD 11.00 million (equivalent to $3700million). Kuwait Fund for Arab Economic Development (KFAED) Deputy Director General Ghanem Sulaiman Al-Ghenaiman signed the document on behalf of the Kuwait Fund while Economic Affairs Division Secretary Syed Ghazanfar Abbas Jilani signed it on behalf of the Government of Pakistan. The ceremony held at Economic Affairs Division was attended by Mr. Fawaz Al-Adasani, Assistant Regional Manager for East, South Asia and Pacific Countries of Kuwait Fund, Fahad Al Mazeel, Charge d Affairs, Embassy of the State of Kuwait and senior officials from Economic Affairs Division, Ministry of Water Resources and Wapda. The EAD secretary said that completion of the Golen Gol Hydroelectric Power Project will offer new opportunities for the people living in Chitral and Khyber Pakhtunkhwa (KP) province. It will meet electricity demand in the area and also boost tourism and economic activities.
Market is expected to remain volatile therefore it'ss recommended to stay cautious while trading today.

The Benchmark KSE100 Index is moving downward gradually after completing its 61.8% correction and posting double top on weekly chart during last three trading session. But it’s still being supported by a descending trend line on daily chart and the bearish trend would not become evident until index would slide below that line, once index would close below that trend line then said line would start reacting as a resistant region for the index. Daily Momentum have changed to bearish while weekly stochastic is trying to generate a bearish crossover and if succeeded then a major shift in market trend would be witnessed. Its recommended to stay cautious while trading during current trading session because index is caged between strong supports and resistances and breakout of either side would call for a further 1000 points move.