PSX Daily Market Review - 16th Jan 2019

Trading volume at PSX floor increased by 6.92 million shares or 6.00% on DoD basis, whereas the benchmark KSE100 index opened at 39,412.60, posted a day high of 39,711.92 and a day low of 39,358.16 points during last trading session while session suspended at 39,614.17 with net change of 201.62 points and net trading volume of 89.30 million shares. Daily trading volume of KSE100 listed companies increased by 5.48 million shares or 6.54% on DoD basis.
Foreign Investors remained in net selling positions of 0.65 million shares and net value of Foreign Inflow dropped by 0.86 million US Dollars. Categorically, Foreign Corporate remained in net selling positions of 1.31 million shares but Foreign Individuals and Overseas Pakistani investors remained in net buying positions of 0.01 and 0.66 million shares. While other side Local individuals, Local Companies, NBFCs, Brokers and Insurance Companies remained in net buying positions of 2.04, 1.91, 0.16, 0.96 and 0.21 million shares but Banks and Mutual Fund remained in net selling positions of 1.23 and 3.32 million shares respectively.

Asia shares subdued, May's Brexit options eyed after crushing vote defeat
Asian shares took a breather on Wednesday after rallying the previous day on Chinese stimulus hopes, with investors assessing Brexit options after British lawmakers trounced Prime Minister Theresa May’s deal to pull out Britain from the European Union. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was off a touch, having swung up on Tuesday after Chinese officials came out in force to signal more measures to stabilize a slowing economy.
Minister says govt will uphold LNG contract with Qatar
The government on Monday said it was requesting Qatar for reduction in the price of Liquefied Natural Gas (LNG) and its supplies on delayed payments under the existing 15-year supply contract, but would abide by all the other clauses in the contract. Speaking informally to a group of media persons, Petroleum Minister Ghulam Sarwar Khan also said Pakistan and Saudi Arabia would sign an MoU for up to $10bn Saudi investment in Gwadar during the visit of Crown Prince Mohammed Bin Salman (MBS) in the last week of February.
APBF, CGSS sign MoU to conduct sector-specific studies
The All Pakistan Business Forum (APBF) and The Center for Global & Strategic Studies (CGSS) have signed a memorandum of understanding (MoU) to evolve a unified strategy on the issues of common interests especially research and development to achieve high economic growth. The signing ceremony was held at a local hotel on Tuesday where APBF President Syed Maaz Mahmood and CGSS President Major General (r) Syed Khalid Amir Jaffery inked the memorandum on behalf of their respective organizations. Whereas APBF Founding Chairman Haroon Khawaja and Chairman Ibrahim Qureshi witnessed the ceremony. The ceremony was also attended by Executive Committee of the APBF and the high powered 20-member delegation of CGSS Advisory Board and senior office-bearers.
ICCI for focusing on marble industry to promote exports
Acting president Islamabad Chamber of Commerce & Industry, Rafat Farid has called upon the govt to focus on marble industry, which has great potential to promote exports and transform Pakistan into a fast growing economy. He said this while talking to a delegation of local marble industry that called on him led by M Shakeel Munir, former chairman All Pakistan Marble Industries Association. Mian Abdul Sami, Farukh Majeed, Mian Irfan, Khalid Mian, Arif Butt and Naeem Mughal were in the delegation. Iftikhar Anwar Sethi, vice president ICCI, Baser Daud, Sheikh Amir Waheed, M. Naveed Malik, Mehmood Warraich and others were also present at the occasion. Rafat Farid said that all provinces of Pakistan including Baluchistan and KP have huge deposits of marble and granite. However, lack of new technology was forcing marble industry to use old quarrying methods due to which the standard quarry wastage in Pakistan was up to 73pc of the gross produce.
Businessmen for withdrawal of hike in NHA charges
The National Highway Authority has announced increase in NOC Fee, Rentals and ‘Security for grant of NOC’ to use NHA Rights of Way (ROW) by the industrial units established within NHA network by more than 100 percent. Now industrial factory/mills/plant established within one acre of land along NHA network/connected through approach road will have to pay Rs.2,000,000 one time NOC Fee, Rs.50,000 per year approach rentals and refundable security of Rs.100,000.

The Benchmark KSE100 index is still not being able to close above its correction levels of last bearish rally and right now it’s being capped by two major resistant regions at 39,960 and 40,200 points where two strong trend lines are generating crossovers with horizontal resistances. Daily stochastic is trying to generate bearish crossovers while intraday momentum indicators have lost their strength and they have generated bearish crossovers therefore some pressure could be witnessed on index during current trading session. Index has supportive regions at 39,150 and 38,600 during current trading session.
PSO is caged in a triangle on daily chart and it’s going to face strong resistances at 242 and 244 Rs. ATRL have a strong supportive region between 127 to 128 Rs and it would try to bounce back towards 134.10 where it would face strong resistance. MLCF would try to find support at 43.60 but breakout of that region would call for a free fall towards 42 onward. PAEL have strong resistances ahead at 29.20 and 29.60.