PSX Daily Market Review - 13th Sep 2018

Trading volume at PSX floor dropped by 2.53 million shares or 1.81% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 40,768.98, posted a day high of 40,822.61 and a day low of 40,431.38 during last trading session. The session suspended at 40,522.04 with net change of -237.49 and net trading volume of 69.64 million shares. Daily trading volume of KSE100 listed companies dropped by 8.08 million shares or 10.40% on DoD basis.
Foreign Investors remain in net selling positions of 10.50 million shares and net value of Foreign Inflow dropped by 6.11 million US Dollars. Categorically Foreign Individuals remained in net buying positions of 0.01 million shares but Foreign Corporate and Overseas Pakistanis investors remained in net selling positions of 10.22 and 0.27 million shares. While on the other side Local Individuals, Local Companies, Banks, Mutual Fund and Insurance Companies remained in net buying positions of 3.06, 0.40, 1.25, 1.95 and 7.60 million shares respectively but NBFCs and Brokers remained in net selling positions of 0.67 and 3.49 million shares.

Asian shares win reprieve on Sino-U.S. trade talk hopes
Asian shares won a reprieve on Thursday as news the Trump administration has reached out to China for a new round of trade talks raised hopes a deal could be struck in the bitter tariff dispute between the world’s two biggest economies. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched 0.2 percent higher in early trade, a day after it hit 14-month lows, while Japan's Nikkei .N225 gained 0.8 percent. On Wall Street, the S&P 500 .SPX was up 0.04 percent. Senior U.S. officials led by Treasury Secretary Steven Mnuchin recently sent an invitation to their Chinese counterparts, including Vice Premier Liu He, to hold another bilateral trade meeting.
Rs35b tobacco tax loss riles MPs
The Senate Special Committee on Causes of Decline in Tax Collection of Tobacco Sector Wednesday directed Federal Board of Revenue (FBR) to develop a comprehensive mechanism to control illicit trade of tobacco, which has been causing loss of billions of rupees to national exchequer. The committee, which met here with Senator Kalsoom Parveen in the chair, also asked FBR to identifying the market share of different companies to determine the tax and directed it to prepare a report on the subject and submit before the committee within 15 days. The committee expressed deep concerns over the decline of Rs35 billion revenues from the tobacco industry despite the fact that the profit of the manufacturers had witnessed over 70 percent increase. The committee also observed that illicit trade of tobacco was harming the national economy badly and asked for taking strict measures to stop the illegal trade of tobacco.
Policy to promote industries soon: Aslam
Provincial Minister for Industries, Trade and Investment Mian Aslam Iqbal said on Wednesday that a comprehensive policy for promoting industries would be announced soon. Talking to journalists after listening to citizens' problems at his Camp Office Samanabad, he added that new industrial policy was being finalised speedily and Punjab government had also decided to open one-window operation in Punjab Investment Board for helping local and foreign investors. Under this one-window facility would encourage the local and foreign investors and enhance their confidence in the government.
One million gas connections in 2018-19
Sui Northern Gas Pipelines Limited (SNGPL) and SSGCL will provide over one million new gas connections in their respective areas during the fiscal year 2018-19. “Both the companies have planned to add 1,121,295 new connections and lay 12,898 km of transmission and distribution pipelines in their respective networks,” official sources told APP on Wednesday. Replying to another question, they said, the companies had invested Rs 1,351 million on transmission projects, Rs 10,202 million on distribution projects and Rs 11,198 million on other projects bringing total investment to about Rs 22,751 million.
Expat Pakistanis ask govt to revise FTA, PTA
Foreign investors on Wednesday emphasised the government to boost business confidence through policy announcements on matters relating to taxation, debt management, reform in FBR and measures to boost Foreign Direct Investment. The Overseas Investors Chamber of Commerce and Industry (OICCI), a body of foreign investors in Pakistan, has hoped that the PTI led government will soon take some bold measures to put the economy on solid growth trajectory. President OICCI Irfan Wahab Khan in an informal interaction with media has said they submitted recommendations to Finance Minister Asad Umar to boost the FDI in Pakistan.

ATRL, DGKC, ISL and SNGP would try to lead positive sentiment during current trading session.

The Benchmark KSE100 Index is getting support from a descending trend line along with a strong horizontal supportive region at its 61.8% correction of its last bullish rally since last two consecutive trading sessions. Now chances of reversal are increasing because momentum indicators on hourly chart have generated bullish crossovers and if index would succeed in closing above 40,930 points during current trading session then daily momentum indicators would also change their direction towards bullish sentiment. If index would succeed in penetrating above 40,930 points then chances of a morning star would become evident on daily chart which would lead index towards 41,200 and 41,340 points. For current trading session index have supportive regions ahead at 40,380 and 40,110 points while resistant regions are standing at 40,930 and 41,340 points. It’s recommended to start buying on dip with strict stop loss of 40,110 points.