PSX Daily Market Review - 12th March 2018

Trading volume at PSX floor dropped by 23.37 million shares or 14.31% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 43089.18, posted a day high of 43188.55 and a day low of 42860.98 during last trading session. The session suspended at 43011.26 with net change of -61.48 and net trading volume of 53.89 million shares. Daily trading volume of KSE100 listed companies dropped by 15.14 million shares or 21.93% on DoD basis.
Foreign Investors remained in net buying position of 0.22 million shares and net value of Foreign Inflow increased by 1.8 million US Dollars. Categorically, Foreign Individual and Overseas Pakistani Investors remained in net selling positions of 0.15 and 1.12 million shares but Foreign Corporate Investors remained in net buying position of 1.49 million shares. While on the other side Local Individuals, Companies and Mutual Funds remained in net selling positions of 1.63, 1.38 and 4.6 million shares but Local Banks, NBFCs, Brokers and Insurance Companies remained in net buying positions of 1.06, 0.77, 0.88 and 4.01 million shares respectively.

A relief rally swept across Asian share markets on Monday after the latest U.S. jobs report managed to impress with its strength while also easing fears of inflation and faster rate hikes, a neat feat that whetted risk appetites globally. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS climbed 1.1 percent, for a third session of gains. South Korea .KS11 rose 1 percent while Australia's main index added 0.7 percent, boosting by mining shares on news that Australia could be exempt from new U.S. trade tariffs on steel and aluminum imports. E-Mini futures for the S&P 500 ESc1 put on another 0.3 percent. Japan's Nikkei .N225 jumped 1.5 percent, showing little immediate reaction as Prime Minister Shinzo Abe came under renewed fire over suspicions of cronyism involving the sale of state-owned land.
The Average prices of 15 essential items increased during the week ended on March 8, 2018 as compared to the previous week. According to data of Sensitive Price Indicator (SPI) based weekly inflation for the week under review released by Pakistan Bureau of Statistics (PBS), the average prices of 08 items registered decrease, while that of 30 items remained unchanged. The weekly SPI has been computed with base 2007, 2008=100, covering 17 urban centers and 53 essential items for all income groups. The items, which registered increase in their prices during the week under review as compard to the previous week included chicken farm (5.3%), garlic (1.7%), washing soap (1.16%), bananas (0.97%), sugar (0.87%), tea (0.78%), lawn printed (0.77%), red chilly powder (0.34 %), vegetable ghee (0.2%), mutton (0.2%), cooking oil (0.19%), gur (0.16%), rice basmati (0.16%), and pulse masoor (0.08%). The items, which registered decrease in prices included potatoes (3.37%), onions (2.69%), tomatoes (2.42%),
The timeframe for unbundling Sui gas companies is unrealistic and new five gas companies will not be able to meet their operational deadline of December 2018. In the Expression of Interest (EOI) document, it is mentioned that transaction to be done in six months but due to upcoming elections and volume of work it is unlikely that the process will be completed during the required time, said the potential Transaction Adviser Firms said in their queries regarding prequalification of transaction adviser on un-bundling of Sui companies, sources informed The Nation on Sunday. Appointment of transaction adviser, to carry out the unbundling of Sui companies, has been approved by the Board of Directors of both the gas companies as per the draft policy decision issued in this respect. Ogra has agreed to allow the cost of this exercise as part of each company's revenue requirement.
The Punjab government will give 110,000 smart phones to the farmers with an objective to keep them updated about agriculture department recommendations about their crops. The farmers would get information regarding ecosystem, latest production techniques, subsidies on agriculture inputs, market prices of different commodities, and the latest researches. The farmers will pay Rs500 to 1000 for acquiring one smart mobile phone. The tenants will pay Rs500 while the owners of land would pay Rs1000.
The government appears to be working on a plan-B to meet its foreign exchange obligations for the current fiscal year and yet maintain a cushion in foreign exchange reserves enough to cover two and half months of imports on completion of the fiscal year on June 30. “The State Bank of Pakistan (SBP) will have $12.5 billion (reserves)” at the end of June 2018, announced Prime Minister’s Adviser on Finance and Revenue Dr Miftah Ismail, but said he could not give all the details at this stage. “This will come through borrowing obviously”, he said.
PSO, DGKC, MLCF and ATRL wouly try to lead index in positive direction but TRG, ISL, SNGP and PPL May lead the index in negative direction.

The Benchmark KSE100 Index have penetrated a triangle in bearish direction during last trading session and right now its coming back to retest supportive trend line of said triangle which would react as a resistance. On Intraday basis index seems to take a spike towards 43200 and 43250 where it would face resistances from a horizontal resistant region and a crossover of two trend lines. Hourly momentum is turing to bullish which would support intraday bullish sentiment but daily and weekly momentums are in bearish mode and these would try to cap any bullish move in coming days. Its recommended to sell on strength during current trading sesison with strict stop loss of 43450 points. For current trading session supportive regions are standing at 42800 and 42580.