PSX Daily Market Review - 12th July 2017

Foreign Investors remained in a net buying position of 9.37 million shares and the net value of Foreign Inflow increased by 11.49 million US Dollars. Categorically. Foreign Corporates and Overseas Pakistani investors remained in net buying positions of 7.69 and 1.67 million shares, respectively. While on the other side, Local individuals and Brokers remained in net buying positions of 3.86 and 7.59 million shares but local Companies, Banks and Mutual Funds remained in net selling positions of 1.63, 10.22 and 13.54 million shares, respectively.

Asian shares steadied on Wednesday after Wall Street managed to weather a fresh twist in the political controversy surrounding U.S. President Donald Trump administration, while investors looked ahead to Federal Reserve Chair Janet Yellen comments later in the day. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS ticked up 0.1 percent while Japanese Nikkei .N225 slid 0.3 percent. "Yellen testimony is the biggest focus. I donot expect shares to move much in either direction ahead of that," said Hirokazu Kabeya, chief global strategist at Daiwa Securities. U.S. stocks took a brief tumble after emails disclosed Trump eldest son cited Russian support for his father 2016 election campaign.
Pakistan trade deficit widened by 36.32 percent to highest ever level of $32.58 billion during last fiscal year (FY17) because of the record increase in imports and decline in exports. Trade deficit was recorded at $23.9 billion during the previous fiscal year (FY16). The government had set the target to keep trade deficit at $20.5 billion for FY2017. However, the deficit surged by $12 billion due to massive growth in imports and decline in exports.
Federal Minister for Planning, Development & Reform Ahsan Iqbal has said that development of special economic zones (SEZs) is the most important phase of China Pakistan Economic Corridor (CPEC) which would prove as a milestone in relocation of Chinese industries and flourishing of Pakistan local enterprises. The minister expressed these view while speaking to a high-level Chinese delegation at Planning Commission here on Tuesday. The 60-member delegation was headed by Li Xuedong, Deputy Director General, Department of International Affairs, National Development and Reform Commission (NDRC) of the People’s Republic of China, comprises of senior officials from NDRC, National Railway Administration, Chinese investors and representatives of China EXIM Bank and China Development Bank.
Finance Minister Senator Ishaq Dar on Tuesday reviewed progress on the development of border crossing complexes at Torkham and Chaman under the Integrated Transit Trade Management System (ITTMS) project. The progress of the project was reviewed during a meeting which was chaired by the finance minister. Among others, the meeting was attended by finance secretary, Federal Board of Revenue (FBR) chairman, Quartermaster General of Pakistan Army, Asian Development Bank (ADB) country director, NLC DG, ITTMS project director, senior officials of the Ministry of Finance, ADB and Infrastructure Project Development Facility.
Two Pakistani Customs officers Sanaullah Abro and Nasreen Nawaz have been chosen by a global forum to give presentation to World Customs Organization (WCO) on career development programme and also lead group discussion. The officers were sponsored by the WCO to attend the Council session of the WCO as honorary guests for one week at the Brussels, said a message received on Tuesday.

The Market is expected to remain volatile today. We advise Traders to exercise caution. Buying on dips and booking gains on strength is recommended.

The Benchmark KSE100 Index bounced back in bearish direction after retesting its double top and the supportive regions ahead are at 43630 and 43205 from a supportive trend line and 61.8% expansion of its last correction. Daily stochastic and MAORSI are attempting to generate a cheat pattern to penetrate its bullish momentum in bearish direction and confirmation of this pattern could be dangerous for bulls. For the current trading session, trading with strict stop loss of 43800 or 43630 is recommended as penetration below these levels would call for 43205. Index may face resistance around 44910 on its way to bullish reversal.