PSX Daily Market Review - 15th Feb. 2018

Trading volume at PSX floor increased by 3.3 million shares or 1.62% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 43675.68, posted a day high of 43781.77 and a day low of 43215.72 during last trading session. The session suspended at 43353.04 with net change of -337.32 and net trading volume of 77.84 million shares. Daily trading volume of KSE100 listed companies increased by 16 million shares or 25.86% on DoD basis.
Foreign Investors remained in net selling position of 6.14 million shares and net value of Foreign Inflow dropped by 1.18 million US Dollars. Categorically, Foreign Individual, Corporate and Overseas Pakistani Investors remained in net selling positions of 0.15, 5.75 and 0.25 million shares respectively. While on the other side Local Individuals, Companies, Banks and NBFCs remained in net buying postions of 16.31, 0.22, 0.31 and 0.34 million shares but Mutual Funds, Brokers and Insurance Companies remained in net selling positions of 6.86, 4.2 and 1.04 million shares respectively.

Asian stocks gained on Thursday after Wall Street brushed aside strong U.S. inflation data and surged, in a move that also saw the dollar pinned at two-week lows even as Treasury yields jumped in anticipation of more rapid U.S. interest rate hikes.MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1 percent.Australian stocks climbed 0.9 percent and South Korea’s KOSPI added 1.1 percent. Japan’s Nikkei advanced 1.3 percent following three successive days of losses that took it to a four-month low the previous day.Wall Street surged on Wednesday, with the Dow up 1 percent and the S&P 500 climbing 1.34 percent, as investors shrugged off the stronger-than-expected inflation data and snapped up shares of Facebook, Amazon.com and Apple.U.S. consumer prices rose more than forecast in January as Americans paid more for gasoline, rental accommodation and healthcare, further raising inflation concerns and the prospect of the Federal Reserve hiking interest rates more than initially expected..
The investors turned to profit taking on Wednesday with benchmark index shedding 162 points, down 0.4 percent to 43,353 points level as market paid heeds to recent political developments.The media reports that the National Accountability Bureau (NAB) has requested the Ministry of Interior to place names of former prime minister Nawaz Sharif, his daughter Maryam Nawaz and son-in-law capt (R) Safdar on the Exit Control List (ECL) as the Sharif family is facing three NAB references and an increasing pressure on foreign exchange have pushed the investors to turn to profit taking.Sector wise data indicates that Cement eroded 112 points from the index, followed by Oil & Gas Marketing and Fertilizer sectors that cumulatively took away 101 index points. Trading volumes improved by 2 percent whereas the trading session was up 3 percent.Stocks including LUCK (-2.4 percent), DGKC (-4.2 percent), SEARL (-3.9 percent), SNGP (-2.9 percent) & PSO (-2 percent) withheld 129 points from the index whereas stocks including HBL (+3.4 percent), UBL (+1.8 percent), MCB (+0.2 percent), JLICL (+3.4 percent) & ABL (+0.9 percent) added 146 points to the index gain.
Three Chinese experts groups are arriving Pakistan in March for preparation and early kick off of CPEC Industrial Zones, review energy project progress and explore the way forward in oil and gas sector.The experts groups, working under Joint Working Groups, that are arriving in March includes industrial experts, experts of energy group and sub-group on oil & gas sector, official source told The Nation here Wednesday. The source said that the energy experts will review the progress on the CPEC energy projects and will also discuss the inclusion of new hydropower projects in the CPEC portfolio. The hydro projects located in AJK, GB and KP will be the main focus of the experts' interaction, the source added. Regarding the industrial expert group the source said that their main focus will be the industrial cooperation particularly in the Special Economic Zones(SEZs). The SEZs will be developed in phases and in the first phase the economic zones of Sindh, Punjab and KP will be developed. However , the source said, that now the federal government has also accelerated work on its economic zones which is also likely be discussed with Chinese experts.
Saudi Arabia said on Wednesday it will further trim oil production and exports next month to reduce excess stockpiles that have weighed on crude prices, as concerns mount over US oversupply.Saudi Aramco's crude output in March will be 100,000 barrels per day (bpd) below its February level while exports will be kept below seven million bpd, the energy ministry said.“Saudi Arabia remains focused on working down excess oil inventories,” a ministry spokesman said.“Market volatility is a common concern for producers and consumers, and the kingdom is committed to mitigating this volatility and moderating its negative impacts.”
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 43100. 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 43461. Its recommended to sell on strength if around 43840 with strict stop loss of 44180 points during current trading session.