Previous Session Recap
Trading volume at PSX floor increased by 17.11 million shares or 9.49% on DoD basis, whereas the benchmark KSE100 index opened at 40,531.13, posted a day high of 40,787.09 and a day low of 39,323.42 points during last trading session while session suspended at 40,455.44 points with net change of -75.69 points and net trading volume of 139.38 million shares. Daily trading volume of KSE100 listed companies also increased by 12.81 million shares or 10.12% on DoD basis.
Foreign Investors remained in net selling positions of 11.04 million shares and value of Foreign Inflow dropped by 3.69 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani Investors remained in net selling positions of 9.35 and 1.70 million shares respectively. While on the other side Local Individuals, Companies, Banks and Insurance Companies remained in net long positions of 6.62, 4.40, 0.45 and 1.60 million shares but NBFCs, Mutual Fund and Brokers remained in net selling positions of 0.13, 1.06 and 1.51 million shares respectively.
Analytical Review
Shares step back as hopes of early end to coronavirus fade
Global shares eased on Friday, as investors were spooked by a sharp rise in the number of coronavirus cases in China this week while oil prices extended gains on hopes of more production cuts. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipped 0.08% with South Korea's Kospi .KS11 falling 0.25% while Japan's Nikkei .N225 slid 0.67%. U.S. stock futures ESc1 shed 0.07% in Asia, after the S&P 500 .SPX lost 0.16%. China’s Hubei province on Friday reported 4,823 new cases, well above the levels seen earlier this month. While a record spike seen a day earlier was mostly due to new methodology used to count new infections, it nonetheless weighed on investor sentiment.
$425m sought for Swat hydro projects
The Khyber Pakhtunkhwa government is seeking $425 million from the World Bank group to develop run-of-river hydropower projects on Swat River Basin which has an estimated energy potential of 2,000MW. The KP government has developed a project at a cost of $782m. However, this financing plan is indicative and efforts would be made to mobilise as much commercial financing as feasible while the share of the provincial government would depend upon the level of commercial capital mobilised, according to a document released by the WB. The $425m loan also included $287m from the International Development Association (IDA).
Pakistan, Turkey sign two MoUs
Pakistan and Turkey on Thursday finalised two memorandums of understandings (MoUs) to increase the level of economic engagement and mobilise the untapped potential for increasing trade and investment. The understanding was reached during a meeting of the Joint Working Group (JWG) on Trade and Investment held on the sidelines of the two-day visit of President Recep Tayyip Erdogan. Two MoUs finalised by the JWG include one on Trade Facilitation and Customs Cooperation, and the other to reinforce cooperation in the field of Halal Accreditation. The two sides agreed to explore the possibilities of enhancing bilateral trade by mutually beneficial market access and trade facilitation.
PM Imran asks provinces to devise joint plan on food prices
rime Minister Imran Khan on Thursday approved the establishment of a National Demand Supply Cell (NDSC) aimed at monitoring the availability of essential commodities and instructed the provinces to formulate within a week a National Action Plan for keeping their prices in check. The prime minister was presiding over a meeting on adulteration, hoarding and inflation, which was attended by federal Minister for Planning Asad Umar, federal Minister for Food Security Khusro Bakhtiar, PM’s Adviser on Commerce Razak Dawood and Special Assistant to the PM on Information Dr Firdous Ashiq Awan.
PHMA warns of protest if levies on power tariff not reversed by weekend
The members of value-added knitwear industry have threatened to go on strike if government’s commitment of providing electricity to the export sector at regionally competitive rate of 7.5 cents/KWh is not fulfilled by Monday, next week. The executive body as well as the majority members of the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) in a meeting held at PHMA regional office with its Vice Chairman Shafiq Butt in the chair, have assured their leadership that the whole export industry is ready to come to streets for mass protests if the surcharges and extra levies are not taken back immediately.
Global shares eased on Friday, as investors were spooked by a sharp rise in the number of coronavirus cases in China this week while oil prices extended gains on hopes of more production cuts. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipped 0.08% with South Korea's Kospi .KS11 falling 0.25% while Japan's Nikkei .N225 slid 0.67%. U.S. stock futures ESc1 shed 0.07% in Asia, after the S&P 500 .SPX lost 0.16%. China’s Hubei province on Friday reported 4,823 new cases, well above the levels seen earlier this month. While a record spike seen a day earlier was mostly due to new methodology used to count new infections, it nonetheless weighed on investor sentiment.
The Khyber Pakhtunkhwa government is seeking $425 million from the World Bank group to develop run-of-river hydropower projects on Swat River Basin which has an estimated energy potential of 2,000MW. The KP government has developed a project at a cost of $782m. However, this financing plan is indicative and efforts would be made to mobilise as much commercial financing as feasible while the share of the provincial government would depend upon the level of commercial capital mobilised, according to a document released by the WB. The $425m loan also included $287m from the International Development Association (IDA).
Pakistan and Turkey on Thursday finalised two memorandums of understandings (MoUs) to increase the level of economic engagement and mobilise the untapped potential for increasing trade and investment. The understanding was reached during a meeting of the Joint Working Group (JWG) on Trade and Investment held on the sidelines of the two-day visit of President Recep Tayyip Erdogan. Two MoUs finalised by the JWG include one on Trade Facilitation and Customs Cooperation, and the other to reinforce cooperation in the field of Halal Accreditation. The two sides agreed to explore the possibilities of enhancing bilateral trade by mutually beneficial market access and trade facilitation.
rime Minister Imran Khan on Thursday approved the establishment of a National Demand Supply Cell (NDSC) aimed at monitoring the availability of essential commodities and instructed the provinces to formulate within a week a National Action Plan for keeping their prices in check. The prime minister was presiding over a meeting on adulteration, hoarding and inflation, which was attended by federal Minister for Planning Asad Umar, federal Minister for Food Security Khusro Bakhtiar, PM’s Adviser on Commerce Razak Dawood and Special Assistant to the PM on Information Dr Firdous Ashiq Awan.
The members of value-added knitwear industry have threatened to go on strike if government’s commitment of providing electricity to the export sector at regionally competitive rate of 7.5 cents/KWh is not fulfilled by Monday, next week. The executive body as well as the majority members of the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) in a meeting held at PHMA regional office with its Vice Chairman Shafiq Butt in the chair, have assured their leadership that the whole export industry is ready to come to streets for mass protests if the surcharges and extra levies are not taken back immediately.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index have faced a strong resistance at 40,800 points during last trading session and had bounced back after getting resistance from that level. It's expected that index would face intraday pressure again today from same region in case of bullish pull back but some kind of bearish volatility could be witnessed and chances of formation of an evening star would increased if index would slide below 40,200 points. It's recommended to adopt swing trading with strict stop loss on both sides. Index have initial supportive regions ahead at 40,200 points and breakout below said regions would call for 39,900 and 39,700 points.
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