PSX Daily Market Review - 15th Dec. 2017

Trading volume at PSX floor dropped by 24.76 million shares or 21.04% on DoD basis, whereas, the benchmark KSE100 Index opened at 38825.74, posted a day high of 38825.74 and a day low of 38126.84 during last trading session. The session suspended at 38223.55 with net change of -596.10 and net trading volume of 54.16 million shares. Daily trading volume of KSE100 listed companies dropped by 15.92 million shares or 22.71% on DoD basis.
Foreign Investors remained in net buying position of 0.51 million shares and net value of Foreign Inflow increased by 1.97 million US Dollars. Categorically, Froeign Individual and Corporate Investors remained in net buying positions of 0.16 and 0.77 million shares but Overseas Pakistanis remained in net selling position of 0.42 million shares. While on the other side Local Individuals and Brokers remained in net selling position of 0.23 and 6 million shares but Local Companies, Banks, Mutual Funds and Insurance Companies remained in net buying positions of 0.48, 2.09, 1.58 and 1.13 million shares respectively.

Asian shares edged higher on Friday, on track for weekly gains, though sentiment was kept in check by Wall Street’s weakness on concerns about the progress of U.S. tax reform. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.04 percent in early trade, poised to gain 1.2 percent for the week. But Japan's Nikkei stock index .N225 slipped 0.8 percent, down 1.3 percent for the week, feeling the pinch of a stronger yen even amid fresh signs the economy is gathering momentum.
Pakistan plans launching another international bond in about 45 days to manage external vulnerabilities and said it would do everything possible not to go for another IMF programme in any circumstances. This came on the conclusion of 10-day comprehensive talks with the International Monetary Fund that identified a couple of near-term challenges mostly arising out of pre-election political instability but otherwise noted strong economic growth prospects and healthy fundamentals. The IMF welcomed recent depreciation of the rupee, noted favourable economic growth momentum supported by im­­proved energy and security situation and infrastructure investments but called for strengthening resilience, greater exchange rate flexibility, fiscal discipline and tight monetary policy stance.
The Economic Cooperation Organization (ECO) countries have agreed to double the trade volume among the member states from the current $60 billion to $120 billion. The announcement was made by Deputy Chairman Planning Commission, Sartaj Aziz in a press conference here, at the end of the 28th Meeting of the Regional Planning Council (RPC) of the Economic Cooperation Organization (ECO) that was held from 11th to 14th December. The meeting was attended by Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyz, Pakistan, Turkey, and Turkmenistan. The Turkish Cypriot State and the Cooperation Council of Turkic Speaking States attended the meeting as observers.
The International Monetary Fund (IMF) on Thursday expressed concerned over external sector of Pakistan’s economy, which could see further difficulties ahead of next general election of 2018. Political instability in Pakistan during last few months has decoupled the country from the economic development. “Pakistan is currently facing difficult time and it needs to maintain stability on external and fiscal sides,” said the IMF Mission Chief Harald Finger while addressing a press conference at the conclusion of post programme monitoring of $6.64 billion External Fund Facility (EFF).
The World Bank Thursday showed interest in execution of new rail connectivity between Peshawar and Jalalabad via Loi Shalman Valley and having an analytical study of different terminals at Karachi. The interest was shown by a delegation of the World Bank, headed by Olivier Le Ber, Transport Manager the World Bank, in a meeting with the officials of the Ministry of Railways here. Mazhar Ali Shah, DG Planning, Ministry of Railways briefed the delegation about 13km long railway track between Port Qasim and Bin Qasim.
NML, ISL, GATM and TRG may lead the market in positive direction

The Benchmark KSE100 Index had dropped after completing 61.8% correction of its last bearish rally and closed again at a technical region by getting support from its 61.8% correction of last bullish run which was started for correction of last bearish run. As of right now index have a major supports at 38100 and 37890 points from its 61.8% correction level. If index would not open with a gap below 38100 then it can be expected that a reversal could be witnessed on intraday basis in KSE100 Index. Bouncing back from this region would add 1000-1100 points in index and would push index towards 39300. But as its mentioned that index is standing at a very crucial region so breakout of these regions in bearish direction would call for an expansion of last correction which would lead index towards 37760 and 37087. Its recommended to remain cautious while trading today as breakout of either side have a gap of 1000 points.