Previous Session Recap
Trading volume at PSX floor increased by 50.41 million shares or 19.80% on DoD basis, whereas the benchmark KSE100 index opened at 40,664.60, posted a day high of 40,911.19 and a day low of 40,450.98 points during last trading session while session suspended at 40,531.42 points with net change of -133.18 points and net trading volume of 205.86 million shares. Daily trading volume of KSE100 listed companies increased by 48.73 million shares or 31.01% on DoD basis.
Foreign Investors remained in net buying positions of 2.73 million shares but value of Foreign Inflow dropped by 0.83 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in net buying positions of 0.24 and 5.26 million shares but Foreign Corporate remained in net selling positions of 2.77 million shares. While on the other side Local Individuals, NBFCs, Mutual Fund and Insurance Companies remained in net buying positions of 3.26, 0.29, 4.48 and 5.51 million shares but Local Companies, Banks and Brokers remained in net selling positions of 4.26, 0.11 and 12.37 million shares respectively.
Analytical Review
Asian shares climb on dovish Fed, but Brexit hurdle looms
Asian stocks rose on Thursday to the highest in a month after the Federal Reserve signaled rate settings were likely to remain accommodative, but the imminent UK election and a deadline for Sino-U.S. trade talks kept investors cautious. The Fed kept interest rates unchanged, as expected, at its policy meeting on Wednesday but indicated interest rates would remain on hold, which nudged Wall Street stocks higher. That helped MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS climb 0.8% to the highest since Nov. 11. Japan's Nikkei stock index .N225 rose 0.18% and U.S. stock futures ESc1 edged up 0.1%. Australian shares were down 0.7%, however, weighed by the financial sector after a money-laundering scandal.
Trade gap narrows 33pc
The country’s trade deficit dipped by 33.04 per cent in the first five months of current fiscal year from a year ago, data released by the Pakistan Bureau of Statistics (PBS) showed on Wednesday. The decline is mainly due to a double-digit fall in imports along with a nominal increase in export proceeds. Moreover, the government’s corrective measures to slow down imports in order to reduce pressures on foreign exchange reserves and slump in overall demand. In absolute terms, the trade gap narrowed to $9.66 billion in July-November from $14.43bn over the corresponding months last year. On a monthly basis, the deficit fell by 29.65pc to $1.92bn in November from $2.74bn over the corresponding month last year.
Green Corridor to expedite customs clearance
Customs authorities of Pakistan and China on Wednesday reached consensus to expedite clearances of agriculture products under the proposed Green Corridor at Sust and Khunjerab. The consensus on this issue among others was reached during the past two days in meetings between General Customs Administration of China and Pakistan Customs at the Federal Board of Revenue (FBR) headquarter. An official statement issued after the meeting said the Green Corridor will serve as a fast track customs clearance system exclusively for agricultural products at the Silk Route Dry Port (SRDP) at Sust, Pakistan and Khunjerab Dry Port at Tashkurgan on the Chinese side.
PM wants comprehensive strategy to boost farm sector
Prime Minister Imran Khan on Wednesday met with the Asian Development Bank (ADB) Chief for Rural Development and Food Security Dr Akmal Siddiq and discussed a comprehensive strategy to boost agricultural sector of the country. PM Khan said the provision of all possible facilities to farmer community is government’s top priority as agriculture sector was the backbone of the country’s economy as a huge chunk of population was attached directly or indirectly to it. He said the government was also focusing on fisheries and farming sectors, besides increasing production of wheat, rice and other major crops through introduction of modern modes and technologies. The government is also keen to take advantage from the Chinese experience in the agriculture sector, he added.
AGP unearths irregularities worth Rs100b
Auditor General of Pakistan has unearthed irregularities worth more than Rs100 billion in the procurement, re-gasification and sale of imported LNG. In its special study on import of LNG for the period of 2015-16, the Auditor General of Pakistan pointed out serious irregularities in the Purchase of LNG in noncompetitive manner. During the Special Study of import of LNG for the period 20l5-l6 it was observed that the Price Negotiation Committee (PNC) constituted by ECC, in its I3th meeting dated October 30, 2015 recommended e rate of 13.9 percent of Brent for purchase of LNG from Qatar for acquiring 400 MMcfd LNG (through approximately 495 ships) in 15 years to the ECC for approval. Meanwhile PSO (a member of the PNC) also engaged in open tendering for purchase of LNG separately.
Asian stocks rose on Thursday to the highest in a month after the Federal Reserve signaled rate settings were likely to remain accommodative, but the imminent UK election and a deadline for Sino-U.S. trade talks kept investors cautious. The Fed kept interest rates unchanged, as expected, at its policy meeting on Wednesday but indicated interest rates would remain on hold, which nudged Wall Street stocks higher. That helped MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS climb 0.8% to the highest since Nov. 11. Japan's Nikkei stock index .N225 rose 0.18% and U.S. stock futures ESc1 edged up 0.1%. Australian shares were down 0.7%, however, weighed by the financial sector after a money-laundering scandal.
The country’s trade deficit dipped by 33.04 per cent in the first five months of current fiscal year from a year ago, data released by the Pakistan Bureau of Statistics (PBS) showed on Wednesday. The decline is mainly due to a double-digit fall in imports along with a nominal increase in export proceeds. Moreover, the government’s corrective measures to slow down imports in order to reduce pressures on foreign exchange reserves and slump in overall demand. In absolute terms, the trade gap narrowed to $9.66 billion in July-November from $14.43bn over the corresponding months last year. On a monthly basis, the deficit fell by 29.65pc to $1.92bn in November from $2.74bn over the corresponding month last year.
Customs authorities of Pakistan and China on Wednesday reached consensus to expedite clearances of agriculture products under the proposed Green Corridor at Sust and Khunjerab. The consensus on this issue among others was reached during the past two days in meetings between General Customs Administration of China and Pakistan Customs at the Federal Board of Revenue (FBR) headquarter. An official statement issued after the meeting said the Green Corridor will serve as a fast track customs clearance system exclusively for agricultural products at the Silk Route Dry Port (SRDP) at Sust, Pakistan and Khunjerab Dry Port at Tashkurgan on the Chinese side.
Prime Minister Imran Khan on Wednesday met with the Asian Development Bank (ADB) Chief for Rural Development and Food Security Dr Akmal Siddiq and discussed a comprehensive strategy to boost agricultural sector of the country. PM Khan said the provision of all possible facilities to farmer community is government’s top priority as agriculture sector was the backbone of the country’s economy as a huge chunk of population was attached directly or indirectly to it. He said the government was also focusing on fisheries and farming sectors, besides increasing production of wheat, rice and other major crops through introduction of modern modes and technologies. The government is also keen to take advantage from the Chinese experience in the agriculture sector, he added.
Auditor General of Pakistan has unearthed irregularities worth more than Rs100 billion in the procurement, re-gasification and sale of imported LNG. In its special study on import of LNG for the period of 2015-16, the Auditor General of Pakistan pointed out serious irregularities in the Purchase of LNG in noncompetitive manner. During the Special Study of import of LNG for the period 20l5-l6 it was observed that the Price Negotiation Committee (PNC) constituted by ECC, in its I3th meeting dated October 30, 2015 recommended e rate of 13.9 percent of Brent for purchase of LNG from Qatar for acquiring 400 MMcfd LNG (through approximately 495 ships) in 15 years to the ECC for approval. Meanwhile PSO (a member of the PNC) also engaged in open tendering for purchase of LNG separately.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index have bounced back after getting resistance from 40,900 points consecutively third time where its being caped by descending trend line on daily and weekly chart. It's still have not succeeded in closing above 40,900 points since last week. As of now it's expected that index would try to target its supportive regions at 40,140 and 39,780 points if it would succeed in penetration below 40,500 points on hourly closing basis. Therefore its recommended to stay cautious and avoid initiating long positions.
While on flip side in case of reversal index would find resistances at 40,760 and 40,960 points but index would remain under pressure until it would succeed in closing above 40,960 points. Breakout above this region would call for 41,200 and 41,800 points.
While on flip side in case of reversal index would find resistances at 40,760 and 40,960 points but index would remain under pressure until it would succeed in closing above 40,960 points. Breakout above this region would call for 41,200 and 41,800 points.
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