PSX Daily Market Review - 16th July 2018

Trading volume at PSX floor increased by 15.85 million shares or 14.56% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 39,856.68, posted a day high of 40,388.55 and a day low of 39,851.61 during last trading session. The session suspended at 40,271.00 with net change of 395.88 and net trading volume of 87.18 million shares. Daily trading volume of KSE100 listed companies increased by 28.00 million shares or 47.31% on DoD basis.
Foreign Investors remained in net selling position of 5.69 million shares and net value of Foreign Inflow dropped by 2.19 million US Dollars. Categorically, Foreign Individuals, Corporate and Overseas Pakistani investors remained in net selling positions of 0.07, 4.33 and 1.30 million shares. While on the other side Local Companies, NBFCs and Insurance Companies remained in net buying positions of 3.18, 0.07 and 4.97 million shares but Local Individuals, Banks, Mutual Fund and Brokers remained in net selling positions of 0.62, 1.98, 0.02 and 0.82 million shares respectively.

Asian shares fall as China data points to slowing growth
Asian shares were lower on Monday after data from China showed the world’s second-largest economy slowed slightly in the second quarter, and as investors remain cautious over the impact of the heated Sino-U.S. trade war. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.4 percent. The Shanghai Composite Index .SSEC lost 0.5 percent, and the blue-chip CSI300 index .SSEC was 0.4 percent lower. Hong Kong's Hang Seng index .HSI was off 0.3 percent. Australian shares were down 0.4 percent, and Seoul's Kospi .KS11 lost less than 0.1 percent. Japan’s markets are closed for a holiday.
SC orders three-year audit of PSO pricing system
The Sup­reme Court on Saturday ordered a complete audit of the Pakistan State Oil (PSO) — a state-owned oil marketing company — to verify the pricing structure for the last three years and determine the fairness of the price the consumers are charged for the import of motor oil, high speed diesel and furnace oil. A three-judge Supreme Court bench, headed by Chief Justice Mian Saqib Nisar, had taken up a case regarding exorbitant taxing, cess, duty and fees of petroleum products, and also ordered a thorough probe of heads of various government departments, including PSO Managing Director Sheikh Imranul Haq, and officials who got a hefty salary of over Rs1.5 million.
Peshawar metro bus cost swells to Rs68b
 The cost of Peshawar Metro, Peshawar Sustainable Bus Rapid Transit Corridor Project (BRT), has increased by 38 percent from Rs49.3 billion to Rs67.9 billion and the Planning Ministry has said that proper working on the design of the project was not carried out at the preliminary design stage which has resulted in such a huge increase. From preliminary design phase to detailed design phase, there are generally no major deviations as is in this case which have resulted in 38 percent increase in cost from the original, said the Transport &Communication Section of the Planning Ministry said in its comment on the revised PC-I of the Peshawar Sustainable Bus Rapid Transit Corridor Project (BRT). Despite decrease in the number of buses and reducing the stations the cost of one kilometer, of ill planned BRT, has increased from Rs1.8 billion to Rs2.3 billion, said the revised PC-I of the project.
1,223MW IPP to start operations this month
Pakistan’s third regasified liquiefied natural gas-based independent power project (IPP) of 1,223MW has been completed and is expected to start commercial operation by the end of July, the Private Power and Infrastructure Board (PPIB) said. The project — located in Balloki, Kasur — was initiated in Nov 2015 and completed at a cost of $798.18m. It was sponsored by National Power Parks Management Company Ltd, Ministry of Energy (Power Division) while PPIB issued its letter of intent and support for the development. The power plant has been constructed with General Electric’s multi-shaft H Frame Combined Cycle Gas Turbines which ensure highest efficiency of 61.63 per cent and reduces fuel cost and CO2 emission over its life. Harbin Electric International was its engineering, procurement and construction contractor along with other Chinese and local companies.
$980m leather export has potential to grow: Minister
Provincial Minister for Livestock and Dairy Development Mian Nauman Kabeer on Sunday said Pakistan's leather industry was the second largest export sector after textile. The minister expressed these views while addressing a seminar, organised by Punjab Livestock and Dairy Development Department here. The aim of the seminar was to create awareness about preservation of sacrificial animals' hides during Eid-ul-Azha for promotion of leather industry. Presently, this sector was sharing almost $980 million yearly volume, but had the potential to multiply this volume of exports with improvement in quality and diversification, he said, adding that the leather industry played a significant role in the economy of Pakistan.

MCB, NBP and HBL would try to maintain positive momentum but DGKC, ISL, PPL and PSO may lead the index in negative zone.

The Benchmark KSE100 Index has completed its 50% correction on daily chart and it may face strong resistances from few horizontal resistant regions at 40,500 and 40,800 points. 40,800 points is the region where 61.8% correction would also complete of last bearish rally. Index is trying to generate a bullish momentum on intraday and weekly chart because an inverted hammer have been created on weekly chart and positive momentum on daily chart would strengthen chances of a morning star on weekly chart with every passing day during this week. Swing trading strategy is recommended during current trading session and coming sessions as well until index would close above 41,900 points on weekly chart.
For current trading session it’s recommended to avoid buying cement stocks because negative momentum still prevails on these stocks on technical basis while fundamental elements are also not supporting buying sentiments in these stocks. Oil sector also could start a bearish rally in coming days and this rally could be lead by PPL and PSO while refineries could find some ground on dips and they may start a bounce back for a correction. Its recommended to be very cautious with buying positions around 40,500 points.