PSX Daily Market Review - 13th Feb. 2018

Trading volume at PSX floor dropped by 10.31 million shares or 4.57% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 43795.20, posted a day high of 43900.20 and a day low of 43461.25 during last trading session. The session suspended at 43515.08 with net change of -293.72 and net trading volume of 65.91 million shares. Daily trading volume of KSE100 listed companies dropped by 14.23 million shares or 17.75% on DoD basis.
Foreign Investors remained in net selling position of 6.09 million shares and net value of Foreign Inflow dropped by 8.97 million US Dollars. Categorically, Foreign Corporates remained in net selling position of 8.49 million shares but Overseas Pakistanis remained in net buying position of 2.37 million shares. While on the other side Local Individuals, Companies, Mutual Funds and Insurance Companies remained in net buying postions of 9.58, 0.56, 1.58 and 1.66 million shares respectively but LOcal Banks and Brokers remained in net selling positions of 5.01 and 4.08 million shares.

Asian stocks pulled further away from two-month lows on Tuesday, lifted by Wall Street’s extended rebound from last week’s steep fall, but investors remained cautious ahead of U.S. inflation data later in the week.MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1 percent after sliding to its lowest level since Dec. 11 on Friday.Australian stocks rose 0.5 percent and South Korea’s KOSPI climbed 1 percent. Japan’s Nikkei added 1 percent.The Shanghai Composite Index was 1.2 percent higher, buoyed by global gains and suggestions of possible Chinese government support.An affiliate of China’s securities regulator on Monday encouraged major shareholders of domestically-listed firms to increase their holdings after last week’s global selloff mauled Chinese stocks. [.SS]
Iranian Consul General Muhammad Rafie has said that the volume of trade between Pakistan and Iran has reached the mark of $1.5 billion per year and his country wants it to increase to a record level of $5bn.Speaking at a ceremony held here on Sunday to mark the 39 anniversary of Islamic Revolution in Iran, he recalled that Pakistan was the first country to have officially welcomed regime change and Islamic revolution in his country.“The two nations have traditional, religious and trade relations spread over decades,” he said. “Pakistan and Iran share more than 1,000km-long border and both countries have strategic importance in the region in geopolitical and economic terms.”
Overseas Pakistani workers remitted $11383.47 million in the first seven months (July to January) of FY18, showing a growth of 3.55% compared with US $10993.48 million received during the same period in the preceding year.During January 2018, the inflow of workers’ remittances amounted to $1638.72m, which is 4.92% lower than December 2017 and 10.10% higher than January 2017, says a press statement by State Bank of Pakistan Monday.The country-wise details for the month of January 2018 show that inflows from Saudi Arabia, UAE, USA, UK, GCC countries (including Bahrain, Kuwait, Qatar and Oman) and EU countries amounted to $383.91 million, $351.58 million, $223.94 million, $235.1 million, $186.33 million and $56.4 million respectively compared with the inflow of $434.15 million, $323.29 million, $175.39 million, $180.91 million, $186.41 million and $31.69 million respectively in January 2017. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during January 2018 amounted to $201.46 million together as against $156.53 million received in January 2017.
Local car assemblers (including LCVs, Vans and Jeeps) sold 23,700 units in January 2018, up 13 per cent year-on-year and 23pc sequentially as start of the year was generally a robust period for auto sales. The change in import procedure, demand from online ride-hailing services as well as availability of auto finance at lower rates contributed to strong demand in outgoing month. This was the highest monthly unit sale recorded for month of January. Cumulatively, industry sales during the seven months of fiscal year 2018 posted 29pc growth to 147,838 units. According to Rai Basharat at Top Line Securities, Pak Suzuki Motor Company Limited (PSMCL), continues to lead the pack as majority of used car imports fall under lower engine capacity segment. PSMCL saw robust growth where sales rocketed 29pc YoY as price conscious models Mehran, up 22pc, followed by WagonR 100pc, and Cultus 15pc all posted robust sales growth. 7MFY18 sales were up 32pc YoY for PSMC to 69,224 units.
The Central Develo­pment Working Party (CDWP) on Monday cleared a total of 24 development projects at an estimated cost of around Rs200 billion. The approved projects also include two roads at a cost of Rs16.3bn in the constituency of Prime Minister Shahid Khaqan Abbasi. The CDWP meeting was presided over by the Planning Commission Deputy Chairman Sartaj Aziz. Of all the projects, 10 larger projects worth Rs169bn were referred to the Executive Committee of the National Economic Council (Ecnec) for formal approval. Twelve smaller development projects worth Rs20bn were approved by the CDWP. The concept papers of two other projects involving Rs10bn estimated cost were also cleared by the CDWP.
Its recommended to practice caution as market is expected to remain volatile.

The Benchmark KSE100 have entertained its resistant trend lines during last trading session and have slipped below those regions after retesting them. As of right now index have supportive region around 43300 points and if it would slide below that level then next targets would be 42500 points as its being caped by two descending trend lines and its coming down this time be completing its bearish corrections on hourly chart and its latest correction would be expanded till 42880. Its recommended to initiate selling on strenght.