Previous Session Recap
Trading volume at PSX floor dropped by 116.47 million shares or 31.81% on DoD basis, whereas the benchmark KSE100 index opened at 43,272.46, posted a day high of 43,468.22 and a day low of 43,095.41 points during last trading session while session suspended at 43,207.04 points with net change of -11.63 points and net trading volume of 151.13 million shares. Daily trading volume of KSE100 listed companies dropped by 47.94 million shares or 24.08% on DoD basis.
Foreign Investors remained in net buying positions of 0.12 million shares and value of Foreign Inflow increased by 1.25 million US Dollars. Categorically, Foreign Individuals and Foreign Corporate remained in net selling positions of 0.03 and 2.18 million shares but Overseas Pakistanis remained in net buying positions of 2.33 million shares. While on the other side Local Individuals and Local Companies remained in net buying positions of 9.19 and 2.04 million shares but Banks, NBFCs, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 0.89, 2.41, 1.07 and 0.37 million shares respectively.
Analytical Review
Stocks tread water ahead of signing of initial U.S.-China trade deal
Stocks were steady in early Asian trade on Wednesday as investors awaited the signing of an initial U.S.-China trade deal, with sentiment somewhat dented by comments from the U.S. Treasury Secretary that tariffs would remain in place for now. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.13%, Japan’s benchmark Nikkei and South Korea’s Kospi shed 0.29% and 0.48%, respectively, while Australian stocks added 0.33%. Treasury Secretary Steven Mnuchin said late Tuesday that the United States would keep in place tariffs on Chinese goods until the completion of a second phase of a U.S.-China trade agreement. The news came hours before the signing of a preliminary trade agreement to ease an 18-month-old trade war between the world’s two largest economies. Wall Street stocks dipped on Tuesday, reversing earlier intraday record highs, after media reported the United States would likely maintain tariffs on Chinese goods past November’s presidential election.
Govt delists five properties from privatisation plan
After receiving statements of qualification (SOQs) from three parties for the sale of two power plants worth $2 billion, the government on Tuesday delisted five properties from its privatisation programme. The decision to delist five properties from the privatisation programme was taken at a meeting of the Cabinet Committee on Privatisation (CCOP) presided over by Adviser to the Prime Minister on Finance & Revenue Dr Abdul Hafeez Shaikh. The single-point meeting of the CCOP also decided to hand over three of the five delisted properties to Naya Pakistan Housing Authority for construction of low-cost housing units and to offer them to the general public. The two other properties were found to be problematic as their titles were not clear and had been pledged against commercial loans. The relevant ministries were directed to identify two alternate properties with clear titles and transfer them to the Privatisation Commission for sale.
EU lays out €1tr plan to support Green Deal
The European Union plans to dedicate a quarter of its budget to tackling climate change and to help shift one trillion euros ($1.1tr) in investment towards making the economy more environmentally friendly over the next 10 years. The Europe Investment Plan unveiled on Tuesday will be funded by the EU budget and the private sector. It aims to deliver on European Commission president Ursula von der Leyen’s Green Deal to make the bloc the world’s first carbon-neutral continent by 2050. The plan includes a mechanism designed to help the regions that would be most disrupted economically by the transition to cleaner industries. It does not depend on any further approval from EU countries. Von der Leyen, who took office in December, has made the fight against climate change the priority of her mandate.
Consumer confidence weakening, latest Ipsos survey shows
In its latest survey, Ipsos, a Paris-based market research and consulting firm, showed that the respondents think the country is moving in the wrong direction as consumers fear the economy is likely to become weaker in the next six months. The respondents feel that inflation, job insecurity and additional taxes are the top three most worrying issues faced by the country at the moment. In a survey of 2,900 participants across the rural and urban areas of the country during July-December period of this fiscal year, 79 per cent of the respondents were pessimistic in their outlook for local and national economy. The survey participants said that during the last 12 months, they have grown less comfortable in purchasing basic household items or making major purchases such as a car or home.
Pak-Iran freight train service suspended as floods damage track
The freight train service between Pakistan and Iran was suspended as floods caused major damage to the railway track in Noshki and Dalbandin. A Pakistan Railways official based in Dalbandin told Dawn that routine operation had been suspended since Jan 6. It was partially resumed after three days, but suspended again the next day as major parts of Noshki and Chagai districts received heavy rains. The official said the floodwater had swept away more than 150 lower parts of the railway track, making it vulnerable to derailment. He said a goods train on the way from Quetta to Iranian city of Mirjaveh was stopped in Dalbandin to avoid any accident. Repair work on the damaged parts of the railway track had begun, but it would take at least 10 days to restore the routine service due to unavailability of required machinery and lack of human resource, the official said.
Stocks were steady in early Asian trade on Wednesday as investors awaited the signing of an initial U.S.-China trade deal, with sentiment somewhat dented by comments from the U.S. Treasury Secretary that tariffs would remain in place for now. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.13%, Japan’s benchmark Nikkei and South Korea’s Kospi shed 0.29% and 0.48%, respectively, while Australian stocks added 0.33%. Treasury Secretary Steven Mnuchin said late Tuesday that the United States would keep in place tariffs on Chinese goods until the completion of a second phase of a U.S.-China trade agreement. The news came hours before the signing of a preliminary trade agreement to ease an 18-month-old trade war between the world’s two largest economies. Wall Street stocks dipped on Tuesday, reversing earlier intraday record highs, after media reported the United States would likely maintain tariffs on Chinese goods past November’s presidential election.
After receiving statements of qualification (SOQs) from three parties for the sale of two power plants worth $2 billion, the government on Tuesday delisted five properties from its privatisation programme. The decision to delist five properties from the privatisation programme was taken at a meeting of the Cabinet Committee on Privatisation (CCOP) presided over by Adviser to the Prime Minister on Finance & Revenue Dr Abdul Hafeez Shaikh. The single-point meeting of the CCOP also decided to hand over three of the five delisted properties to Naya Pakistan Housing Authority for construction of low-cost housing units and to offer them to the general public. The two other properties were found to be problematic as their titles were not clear and had been pledged against commercial loans. The relevant ministries were directed to identify two alternate properties with clear titles and transfer them to the Privatisation Commission for sale.
The European Union plans to dedicate a quarter of its budget to tackling climate change and to help shift one trillion euros ($1.1tr) in investment towards making the economy more environmentally friendly over the next 10 years. The Europe Investment Plan unveiled on Tuesday will be funded by the EU budget and the private sector. It aims to deliver on European Commission president Ursula von der Leyen’s Green Deal to make the bloc the world’s first carbon-neutral continent by 2050. The plan includes a mechanism designed to help the regions that would be most disrupted economically by the transition to cleaner industries. It does not depend on any further approval from EU countries. Von der Leyen, who took office in December, has made the fight against climate change the priority of her mandate.
In its latest survey, Ipsos, a Paris-based market research and consulting firm, showed that the respondents think the country is moving in the wrong direction as consumers fear the economy is likely to become weaker in the next six months. The respondents feel that inflation, job insecurity and additional taxes are the top three most worrying issues faced by the country at the moment. In a survey of 2,900 participants across the rural and urban areas of the country during July-December period of this fiscal year, 79 per cent of the respondents were pessimistic in their outlook for local and national economy. The survey participants said that during the last 12 months, they have grown less comfortable in purchasing basic household items or making major purchases such as a car or home.
The freight train service between Pakistan and Iran was suspended as floods caused major damage to the railway track in Noshki and Dalbandin. A Pakistan Railways official based in Dalbandin told Dawn that routine operation had been suspended since Jan 6. It was partially resumed after three days, but suspended again the next day as major parts of Noshki and Chagai districts received heavy rains. The official said the floodwater had swept away more than 150 lower parts of the railway track, making it vulnerable to derailment. He said a goods train on the way from Quetta to Iranian city of Mirjaveh was stopped in Dalbandin to avoid any accident. Repair work on the damaged parts of the railway track had begun, but it would take at least 10 days to restore the routine service due to unavailability of required machinery and lack of human resource, the official said.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index is being caged in a rising wedge and it's getting resistance from rising trend line of that wedge since last three trading sessions. As of now chances of an evening star on daily chart are still evident and this formation would complete if index would slide below 42,840 points till day end today therefore it's recommended to stay cautious and trade with strict stop loss. Daily momentum indicators are losing strength after reaching 61.8% correction of its weekly and monthly bearish rallies and a candle stick formation at this stage could be dangerous because it would make investors uncomfortable and could result in some kind of serious selling pressure. In this scenario index would find try to find some ground at 42,840 and 42,300 points in coming days.
While on flip side some fresh volume would be required to push index above its resistant regions of 43,620 44,860 points. Index would enter into a new bullish era once it would succeed in closing above 44,250 points, therefore it's recommended to post trailing stop loss on existing long positions and avoid initiating short positions until index succeed in creating a clear reversal sign.
While on flip side some fresh volume would be required to push index above its resistant regions of 43,620 44,860 points. Index would enter into a new bullish era once it would succeed in closing above 44,250 points, therefore it's recommended to post trailing stop loss on existing long positions and avoid initiating short positions until index succeed in creating a clear reversal sign.
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