PSX Daily Market Review - 15th Aug 2018

Trading volume at PSX floor dropped by 86.85 million shares or 34.73% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 42,813.29, posted a day high of 42,853.68 and a day low of 42,596.14 during last trading session. The session suspended at 42,637.58 with net change of -204.60 and net trading volume of 87.29 million shares. Daily trading volume of KSE100 listed companies dropped by 50.42 million shares or 36.61% on DoD basis.
Foreign Investors remained in net selling position of 12.10 million shares and net value of Foreign Inflow dropped by 0.41 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in net buying positions of 0.02 and 0.60 million shares but Foreign Corporate investors remained in net selling positions of 12.72 million shares. While on the other side Local Individuals, Banks, NBFCs and Insurance Companies remained in net buying positions of 11.79, 1.64, 2.24 and 5.87 million shares but Local Companies, Mutual Fund and Brokers remained in net selling positions of 0.74, 1.92 and 5.45 million shares respectively.

Asian stocks weaken as Turkey worries weigh, dollar stands tall
Asian stocks sagged on Wednesday, failing to track Wall Street’s gains and with the dollar near a 13-month high as concerns about Turkey’s financial crisis weighed on investor appetite, despite the lira’s move away from an all-time low. Australian stocks lost 0.15 percent and Japan's Nikkei .N225 slipped 0.15 percent after rallying more than 2 percent on Tuesday. South Korean markets .KS11 were closed for a public holiday. Wall Street’s three main indexes rose on Tuesday as the lira’s climb eased fears of broader financial contagion for now. A string of robust earnings also boosted U.S. shares. But the rise in U.S. shares did not carry through to Asia, with MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipping 0.15 percent after bouncing 0.4 percent the previous day when the lira showed signs of stabilizing.
PIA to replace Sabre with Turkish computer system from 22nd
Cash-starved Pakistan International Airlines to disband Sabre and to use Turkish HTIT Computer System from August 22, the reliable sources told The Nation on Monday. According to the source, completely oblivious to problems faced by cash starved PIA, the Aviation Division and airline management with blessings of politically appointed Board of Directors, instead of focusing on fixing outdated In flight Entertainment System (IFE) and giving priority to procure essential spares to keep its fleet in air, has after its failed efforts to rebrand airline livery with Markhor, signed an agreement with HITIT Computer Systems, a Turkish company, on April 18, 2018 to replace existing Sabre Reservation system by August 22nd. PIA scrapped its own Computerized Reservation System with Sabre, a subsidiary of American Airlines in 2007 using their technology to book E-Tickets over the internet, eliminating paper ticketing before IATA mandated deadline of December 31, 2007.
Trade deficit restrained as exports, imports flatten out in July
Pakistan’s exports of merchandise posted a paltry growth of 1.2 per cent in July from a year ago, the Pakistan Bureau of Statistics said on Monday. The export proceeds rose to $1.64 billion in the first month of the current fiscal year from $1.62bn over the corresponding month of last year. The disappointing data comes despite multiple currency depreciations since last July that have seen the rupee sink by 17pc. On the upside, however, the data showed an equally paltry growth in imports and the trade deficit. Imports recorded a growth of 0.6pc to $4.84bn in July from $4.8bn a year ago. As a result, the merchandise trade deficit up by 0.3pc in July, which is the lowest monthly growth in the preceding 12 months.
Iran offers discount oil to Asia
Iran is selling oil and gas at a discount to Asian customers as it prepares for the return of US sanctions, state news agency IRNA reported on Monday. The "informed source" in Iran's oil ministry did not give details of the discount, but sought to downplay the move as common industry practice. "Discount is part of the nature of the global markets being offered by all oil exporters," the source told IRNA. Bloomberg reported on Friday that the state-run National Iranian Oil Company was reducing official prices for September sales to Asia to their lowest level in 14 years, compared with Saudi crude.
SBP import curbs to hinder orders
Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Monday feared that the latest move of import restriction by the State Bank of Pakistan (SBP) would hinder smooth process of future export orders, leading to decline in foreign inflows amidst highest trade deficit in the country. In a meeting of the PHMA office-bearers and executive committee here, PHMA Central Chairman Dr Khurram Anwar Khawaja expressed the concern over inconvenience caused to exporters in completion of their orders due to disallowing exporters to make advance payment up to US$10,000 per invoice for the import of all eligible items without the requirement of L/C or Bank Guarantee from the supplier abroad. The PHMA meeting demanded of the SBP to immediately restore the required facility for the exporters to avoid further decline in country’s exports as the orders from foreign buyers had been affected.

SSGC, DGKC, ISL and TRG would try to lead negative momentum

The Benchmark KSE100 Index have completed 61.8% correction of its last bearish rally and right now its heading for expansion of said correction, but before completion of that expansion index have supportive regions ahead at 42,460 and 42,089 points. Index would try to find some ground at 42,460 points initially during current trading session and hourly closing below that region would call for a dip towards 42,089 points. Daily, Weekly and Hourly momentum indicators have started falling since last trading session and index would try to remain bearish if it would slide below 42,460 points which fall on a strong horizontal supportive region along with an ascending supportive trend line. Its recommended to initiate selling on strength with strict stop loss if index start sliding below 42,460 points.
On other side index have resistant regions ahead at 42,940 and 43,330 points and these price levels fall on a horizontal resistant region and a strong descending resistant trend line respectively. DGKC, FCCL, ISL and SNGP have started sliding from their resistant regions gradually and it’s expected that these scripts would try to remain under pressure except SNGP which have closed at its supportive region and it need to open with a negative gap below 100.60 to maintain its negative momentum. ATRL have tried to bounce back in bullish direction from its 74.6% correction during last trading session and it would try to retest that region again, if it would succeed in sliding below 202 then next supportive region would be found near 192. SSGC and TRG are trying to bounce back in bearish direction after completion of their 61.8% correction of their last bearish rallies and it’s expected that these both would try to maintain bearish momentum towards 31.48 and 30.86 respectively during current trading session, mean while TRG need to close below 32.50 on hourly chart to target 30.86.