PSX Daily Market Review - 16th May 2018

Trading volume at PSX floor increased by 4.98 million shares or 2.83% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 42,478.99, posted a day high of 42,608.08 and a day low of 41,845.31 during last trading session. The session suspended at 42,459.53 with net change of -39.33 and net trading volume of 111.34 million shares. Daily trading volume of KSE100 listed companies increased by 13.85 million shares or 14.21% on DoD basis.
Foreign Investors remained in net selling position of 10.6 million shares and net value of Foreign Inflow dropped by 10.47 million US Dollars. Categorically, Overseas Pakistanis remained in net buying positions of 0.77 million shares but Foreign Corporate Investors remained in net selling position of 11.38 million shares. While on the other side Local Individuals, Companies, Banks and Brokers remained in net buying positions of 12.83, 3.34, 4.2 and 0.88 million shares respectively but NBFCs, Mutual Funds and Insurance Companies remained in net selling positions of 0.08, 12.92 and 0.15 million shares respectively.

Asian shares lower as North Korea suspends talks, U.S. yields shoot higher
Asian markets fell in early trade on Wednesday after Pyongyang called off talks with Seoul, throwing a major U.S.-North Korean summit into question, and a spike in the U.S. 10-year Treasury yield to a seven-year high knocked sentiment on Wall Street. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.1 percent. Strong U.S. retail and factory data on Tuesday pushed the U.S. 10-year yield through a key level to hit 3.095, its highest since July 2011. The rise in yields hurt U.S. share markets on concerns it would undercut stock valuations. Asian shares are under pressure after North Korea canceled high-level talks with Seoul, denouncing military exercises between South Korea and the United States, breaking from several months of easing relations on the peninsula.
UNDP to help BOI form Impact Investment Fund
In efforts to augment the impact investment ecosystem in Pakistan and introduce Sustainable Development Goals (SDGs)-aligned financing, United Nations Development Programme in Pakistan (UNDP) will support Board of Investment (BOI) in exploring the establishment of Pakistan's first Impact Investment Fund. The fund will be aligned with the Government's Vision 2025 Roadmap and is an essential step in helping Pakistan achieving its Sustainable Development Goals (SDGs). The partnership hopes to leverage the private sector and capital markets to support SDG-aligned financing and investment models focusing on venture capital - capital that is prepared to take on additional risk to 'kick-start' underserved sectors and districts within Pakistan.
Kharif faces 48pc water shortage
The water shortage for Kharif season has reached to 48 percent however on the pressure of the provinces IRSA's advisory committee declared 42 percent water shortage for early Kharif season, instead of earlier 31 percent forecast. In the meeting of the IRSA's advisory committee the water regulatory authority has presented a grim picture about the water availability for the Kharif season and predicted a shortage of 48 percent, however the provinces insisted that the situation may get better in the coming days, official source told The Nation. Due to provincial pressure the advisory committee has announced a water shortage of 42 percent. The Irsa Advisory committee which met on March 29 had projected 31 per cent water shortages in early Kharif season but water shortage has further increased.
Aptma demands smooth power supply in Ramazan
The All Pakistan Textile Mills Association (Aptma) Punjab Chairman Ali Pervaiz Malik has demanded Rs8 per kWh electricity tariff for the textile industry in Punjab and uninterrupted electricity supply during Ramazan. "The government should also continue with the relief of Rs3 per unit under the Prime Minister's Textile Industry package as Punjab industry is unable to operate on over 100 percent energy price disparity viz other provinces." He was addressing a press conference after presiding over the APTMA Punjab general body meeting by over 100 member mills from Lahore, Faisalabad and Multan attended Punjab office on Tuesday.
KP, Korean firm sign MoU to build Kalam-Asrit Hydropower Project
The Korean state-owned company Korea South East Power Company, KOEN, has entered into an agreement with KP government for the development of 197 MW Kalam-Asrit Hydropower Project. A Memorandum of Understating in this regard was signed between the KP government and the KOEN, here Tuesday. The agreement was signed by the representatives of the KP government and KOEN in the presence of KP Chief Minister Pervaiz Khattak. Talking to the media on the occasion, the chief minister said that the project will be completed with the total estimated cost of $500 million. The KP government will get revenue of Rs 35 million annually without doing any investment, he added.

The Benchmark KSE100 Index had bounced back during last trading session after getting support from a horizontal support and a descending trend line and an inverted hammer is formatted on daily chart. It’s expected that index would start with a positive momentum and a spike is expected on intraday basis but daily and weekly momentum indicators are still in bearish direction and those would try to add pressure on index at day end. Index would face resistances at 42,860 and 43,390 points while supportive regions are standing at 42,180 and 41,580 points. Its recommended to sell on strength with strict stop loss during current trading session.