PSX Daily Market Review - 14th May 2018

Trading volume at PSX floor dropped by 31.58 million shares or 16.1% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 43,869.07, posted a day high of 44,027.58 and a day low of 43,550.68 during last trading session. The session suspended at 43,594.79 with net change of -260.99 and net trading volume of 86.30 million shares. Daily trading volume of KSE100 listed companies increased by 12.01 million shares or 16.16% on DoD basis.
Foreign Investors remained in net selling position of 0.24 million shares and net value of Foreign Inflow dropped by 1.79 million US Dollars. Categorically, Foreign Individuals and Foreign Corporate remained in net buying positions of 0.02 and 0.41 million shares but Overseas Pakistanis Investors remained in net selling positions of 0.67 million shares. While on the other side Local Individuals, Local Companies and Banks remained in net buying positions of 1.89, 2.60 and 2.20 million shares but NBFCs, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 0.39, 4.20, 3.25 and 0.69 million shares respectively.

Asian stocks up on U.S.-China thaw, Malaysian shares bounce, ringgit falls
Asian shares shot up to near two-month highs on Monday on signs the United States and China were toning down their trade war rhetoric, while Malaysian Ringgit hit a four-month trough in the first onshore trade since a shock election result last week.Veteran Mahathir Mohamad came out of political retirement to lead the opposition Pakatan Harapan (Alliance of Hope) to a stunning victory over a ruling party he had once led, defeating prime minister Najib Razak, a former protege he had accused of corruption. Some investors were concerned that populist promises such as repealing an unpopular goods and services tax and restoring a petrol subsidy could undermine the country’s economic prospects. In response, the Malaysian Ringgit MYR= fell to a four-month low of 3.982 per dollar at open, while the benchmark share index dropped as much as 2.7 percent at open before bouncing into positive territory.
PM asks businesses to raise exports to $100b
Prime Minister Shahid Khaqan Abbasi Sunday stressed upon the exporters to increase Pakistan’s exports to at least $100 billion as the country had immense potential to compete in the global markets. He said the government had already met the demands of investors and exporters, and now it was up to them to enhance the exports volume. Addressing the Lahore Chamber of Commerce and Industry’s (LCCI) achievement award ceremony, the prime minister said three-month exports incentives announced by the government, were now paying dividends and hinted that the incentives period could be enhanced to three years. “The government has provided whatever the exporters had demanded. Now, it is up to them to come forward and play their role for increasing exports digits to $40 billion or $ 100 billion,” he added.
26.08pc wheat procurement completes
Food Department claimed to have achieved 26.08 percent wheat procurement target so far by purchasing 1,394,229 bags wheat during the current wheat procurement drive in the division. A spokesman for the food department said here Sunday that 2,910,252 bags 'Bardana' were distributed to wheat growers, besides accelerating the efforts to achieve the wheat procurement target within stipulated time.
Two oil firms told to suspend work at Keamari terminal
On the request of defence authorities, the federal government has finally ordered immediate suspension of unauthorised operations at two key oil installations at Keamari in Karachi being carried out by private oil marketing companies (OMCs) without prior security clearance, it emerged on Sunday. The petroleum division of the ministry of energy asked the Oil and Gas Regulatory Authority (Ogra) to take action in the matter as the ministry of defence (MOD) had been showing “serious concern over the operations of the unauthorised terminals”. The MOD had written letters about the unauthorised activities by oil companies without security clearance in February last year and then followed up in June 2017.
SECP gets new chairman
The federal government has appointed Shaukat Hussain as chairman Securities and Exchange Commission of Pakistan (SECP) after withdrawing the earlier cabinet approval where another senior commissioner was appointed as the head of the corporate sector regulator. The notification F.3(5) Inv-II/2000, dated May 11, 2018 issued by the finance ministry, said that Hussain has been appointed SECP‘s chairman with immediate effect. A senior official of the ministry said that the first summary was circulated among the cabinet members seeking approval for the appointment of SECP Commissioner Tahir Mahmood as its chairman. It also identified that the Acting Chairman Zafar Abdullah was not being confirmed as chairman as he is set to retire in August. While another summary was circulated on Friday highlighting that the matter was reconsidered by the government and Hussain was being appointed as chairman.

The Benchmark KSE100 Index have bounced back after getting resistance from a horizontal resistant region and now it’s moving towards a horizontal supportive region where a double bottom also could be formatted on daily chart. Daily Stochastic is trying to move again in bearish direction and it’s expected that index would try to target 42,800 to 42,700 points region if succeeded in closing below its double bottom of 43,300 points. An intraday spike could be witnessed in index because hourly momentum indicators are trying to start a pull back during current trading session. It’s recommended to initiate selling on strength with strict stop loss of 44,180.