PSX Daily Market Review - 14th Feb. 2018

Trading volume at PSX floor dropped by 11.63 million shares or 5.4% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 4343582.09, posted a day high of 43878.33 and a day low of 43548.81 during last trading session. The session suspended at 43690.36 with net change of 175.28 and net trading volume of 61.85 million shares. Daily trading volume of KSE100 listed companies dropped by 4.06 million shares or 6.16% on DoD basis.
Foriegn Investors remained in net selling position of 6.57 million shares and net value of Foreign Inflow dropped by 6.99 million US Dollars. Categorically, Foreign Individual and Overseas Pakistanis investors remained in net buying positions of 0.03 and 0.89 million shares but Foreign Corporate Investors remained in net selling position of 7.49 million shares. While on the other side Local Individuals, Companies, Mutual Funds and Insurance Companies remained in net buying positions of 8.63, 0.35, 3.67 and 0.36 million shares but Local Banks, NBFCs and Brokers remained in net selling positions of 2.31, 0.42 and 3.63 million shares respectively.

Asian share markets turned mixed on Wednesday as investor nerves were strained ahead of a U.S. inflation report that could soothe, or inflame, fears of faster rate hikes globally. The early inclination was to hope for the best and E-Minis for the S&P 500 added 0.1 percent while MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent. Yet Japan’s Nikkei could not hold early gains and slipped 0.7 percent to test four-month lows. Dealers said there was a lot of focus on the 200-day moving average at 21,031 as a break there would ring bearish alarm bells. On Wall Street, the Dow had ended up a slim 0.16 percent, while the S&P 500 gained 0.26 percent and the Nasdaq 0.45 percent. Moves were tentative with investors clearly scarred by the return of volatility.
The government has started the process for transformation of Central Power Purchasing Agency-Guarantee (CPPA-G) as an independent operator of the country’s electricity market from its existing role of a billing and financial settlement agent of the distribution companies. An application to register CPPA as a ‘market operator’ was admitted by the National Electricity and Power Regulatory Authority (Nepra) in July 2017. Having taken stakeholder comments, Nepra is now moving ahead to a public hearing to be held on March 6. As market operator, the transformed CPPA-G will be responsible for almost all buying and selling of electricity at market prices, from power generation to transmission and distribution companies and enable third-party private players as well.
Pakistan and Canada have decided to hold a joint working group meeting next month in Islamabad to identify and remove bottlenecks in bilateral trade relations and develop partnerships in economic, trade, agriculture and investment sectors. This was decided during a meeting between Commerce Minister Pervez Malik, Canadian International Trade Minister Francois-Philippe Champagne and Canadian Immigration Minister Ahmed Hussen in Ottawa on Monday. Mr Malik informed the Canadian side that under the World Trade Organisation framework, Pakistan is looking for a level playing field for its exports to the Canadian market.
The government’s incentives package to increase the country’s exports is in final stage, which would offer subsidised rates of electricity and gas to the exporters. “The government is preparing an incentives package to enhance the country’s exports on the directive of Prime Minister Shahid Khaqan Abbasi, which is likely to be announced within next couple of weeks,” said an official. He further said that the government would reduce the rates of electricity and gas for the industrial sectors. Similarly, the government would also repay tax refunds to the exporters, which is their long lasting demand, he added. However, the official said, the exporters would have to show 20-25 percent growth in their exports to avail the package.
The services exports during first half of fiscal year 2017-18 rose to $2.58 billion compared to the exports of $2.46 billion in same period of previous year, thus posting an increase of 4.72 per cent. Similarly, the imports of services also registered an increase of 9.01 per cent as they reached $5.14 billion in Jul-Dec 2017-18 from $4.7 billion in first six months of fiscal year 2016-17, according to a latest data released by Pakistan Bureau of Statistics (PBS).
Its recommended to practice caution as market is expected to remain volatile.

The Benchmark KSE100 Index have maintained its resistant trend line after retesting them during last trading session and closed below those regions. As of right now index is consolidating in a range bound situation and its not becoming able to penetrate in either direction therefore its recommended to practice caution until index close above its resistant region of 44180 or supportive region of 43300. Intraday momentum seems bearish for current trading session and its expected that index would try to penetrate its support today it would not become able to open with a positive gap above 43840. Its recommended to sell on strengh if around 43840 with strict stop loss of 44180 points during current trading session.