PSX Daily Market Review - 12th Dec 2018

Trading volume at PSX floor dropped by 30.16 million shares or 19.56% on DOD basis whereas the Benchmark KSE100 index opened at 39,334.80, posted a day high of 39,338.68 and day low of 38.801.13 during last trading session while session suspended at 38,851.96 points with net change of -447.67 points and net trading volume of 84.42 million shares. Daily trading volume of KSE100 listed companies dropped by 28.76 million shares or 25.42% on DOD basis.
Foreign Investors remained in net selling positions of 6.26 million shares and net value of Foreign Inflow dropped by 3.75 million US Dollars. Categorically, Foreign Individuals and Foreign Corporate and remained in net selling positions of 0.35 and 7.18 million shares but Overseas Pakistanis investors remained in net buying positions of 2.27 million shares. While on the other side Local Individuals, Local Companies, NBFCs, Mutual Fund and Brokers remained in net buying positions of 0.17, 5.53, 0.17, 2.71 and 1.11 million shares respectively but Banks and Insurance Companies remained in net selling positions of 0.75 and 3.44 million shares.

Stocks run with Sino-U.S. trade hopes; sterling hamstrung by politics
Asian stock markets rallied on Wednesday as U.S. President Donald trump sounded upbeat about a trade deal with China, while sterling struggled with the risk of an imminent party coup against British Prime Minister Theresa May. In an interview with Reuters, Trump said talks were taking place with Beijing by phone and he would not raise tariffs on Chinese imports until he was sure about a deal. Trump also said he would intervene in the Justice Department’s case against a top executive at China’s Huawei Technologies [HWT.UL] if it would serve national security interests or help close a trade deal.
Trade deficit shrinks to $14.5b in five months
Pakistan’s trade deficit had shrunk to $14.5 billion in first five months (July to November) of the current fiscal year on the back of minor decline in imports while the pace of increase in exports remained modest. The trade deficit had recorded at $14.5 billion during July to November of FY2019, which is 2.03 percent lesser than the deficit of corresponding period of previous year, according to Pakistan Bureau of Statistics (PBS). The deficit had contracted due to reduction in imports and minor increase in the exports during five months of the ongoing financial year.
Bakhtyar reviews pace of CPEC projects
Federal Minister for Planning, Development & Reform Khusro Bakhtyar said that the industrial framework agreement with China would help move forward with relocation of Chinese industries and large scale investment in Pakistan. While chairing a meeting to review progress on Pak-China Industrial Cooperation Tuesday the federal minister directed for utility provision to first CPEC Special Economic Zone at Rashkai.
Circular debt rises to Rs1,300b, Senate body told
A parliamentary committee was yesterday informed that the government was launching an anti power theft project with the cost of $1 billion as the country’s circular debt has increased to over Rs1,300 billion. Senate Standing Committee on Power which met with Senator Fida Muhammad in the chair. The total circular debt is more than Rs 1300 billion out of that Rs700 billion is parked in the power holding company. Out of the remaining Rs600 billion circular debts, Rs250 billion is because of Peshawar Electric Supply Company (Pesco), said Federal Minister for Power Umar Ayub Khan while briefing the committee.
KP to sell 18 MWs to Gadoon industrial estate
The KPK government has decided to sell out 18 megawatt electricity from Pehour power station to Gadoor Industrial estate to help revive closed industrial unities and generate employment opportunities for youth besides strengthening economy of the province. This was decided during 26th meeting of Board of Directors of KP PEDO with Sahibzada Saeed in chair. Secy Energy Salim Khan, CE PEDO Engr Ziaullah Shah, PESCO Chief Dr Amjad Ali, Deputy Secretary Home Akmal Khattak, President SCCI Faiz Muhammad and other senior officials attended the meeting.

The Benchmark KSE100 Index have reversed after getting resistance from a resistant trend line on daily chart and have tried to generate bearish engulfing pattern but could not succeed in doing so because a horizontal supportive region have resisted against bearish momentum. But a dark cloud formation has occurred on daily chart which would try to add pressure on index to fill its previous gap. For current trading session index have supportive region at 38,550 points where a horizontal supportive region would try to support index and also its daily gap would be fulfilled. Breakout of that region in bearish direction would call 37,700 points in coming days. While on flipside index would face resistances at 39,015 and 39,463 points on intraday basis.