PSX Daily Market Review - 13th July 2017

Foreign investors remained in a net selling position of 1.33 million shares and the net value of Foreign inflow dropped by 8.21 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in a net buying position of 0.073 and 1.36 million shares but Foreign Corporate investors remained in a net selling of 2.76 million shares. While on the other side, Local Individuals remained in net buying positions of 16.01 million shares but Local Companies, Banks, Mutual Funds and Brokers remained in net selling positions of 1.77, 4.37, 13.81 and 1.4 million shares, respectively.

Asian shares scaled a two-year top on Thursday as investors wagered policy tightening in the United States would be glacial at best, lifting Wall Street to record peaks and lowering bond yields almost everywhere. The star performer was the Canadian dollar, which rocketed to 11-month highs after the country central bank hiked rates for the first time in seven years and left the door wide open to further moves. MSCI broadest index of Asia-Pacific shares outside Japan rose 0.45 percent to its highest since mid-2015. Japanese Nikkei firmed 0.4 percent and Australian main index jumped 1 percent.
Moody Investors Service has affirmed B3 rating for Pakistan and maintained a stable outlook in its Global Credit Research made available on Tuesday. According to Moody credit analysis, although Pakistani medium-term growth outlook — backed by the China-Pakistan Economic Corridor (CPEC) — is strong, "the government debt burden is high and fiscal deficits remain relatively wide". Moody credited the CPEC and International Monetary Fund three-year Extended Fund Facility programme for a strengthened outlook for growth.
Construction work of Kurram-Tangi Dam, having a capacity of 83.4MW, is in full swing in North Waziristan Agency (NWA). “The dam will be completed at a cost of about Rs 30 billion in five years,” sources of FATA Secretariat said. The dam will also irrigate three hundred and sixty-two thousand acres of land in North Waziristan Agency and Bannu district.
Minister for Railways Khwaja Saad Rafique on Wednesday urged Islamic Development and Economic Cooperation Organization Trade and Development Bank (ECO TDB) to promote investment in railways for better connectivity among ECO states. “I have already talked to Asian Development Bank (ADB) and would urge Islamic Development Bank (IDB) and ECO Trade and Development Bank to contribute to economic and social development of the ECO region,” he said while addressing the 9th high level Working Group meeting of ECO Container Train on Islamabad-Tehran-Istanbul (ITI) route.
Pakistani Ambassador to the United States Aizaz Ahmad Chaudhry has urged the Pakistani IT professionals to explore new export opportunities and forge investment links with the US IT firms. He was talking to a 16-member delegation of IT professionals from Pakistan, which is attending a Microsoft Global Partner event “Inspire” being held in Washington from July 9-13. During their meeting at the Embassy, the delegation discussed matters relating to IT sector in the country. Ambassador Aizaz Ahmad Chaudhry said, “Pakistan is an emerging market for the international investors and there is a tremendous potential for promoting Information Technology (IT) sector at the international level.”

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 completed 61.8% expansion of its latest bearish correction and may find support from a supportive trend line along with a horizontal supportive region at its 61.8% expansion level. For the current trading session, the index has resistant regions at 44550 and 45012 points regions from a horizontal resistance and a previous supportive trend line. The current trading session is crucial as closing above 44550 and 45000 would change the short term sentiments because closing above the said levels would create a daily morning star. Daily stochastic and MAORSI are still in bearish mode and they may push the index back towards its supportive regions. Trading with strict stop loss is recommended for the current trading session.

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