PSX Daily Market Review - 16th May 2019

Trading volume at PSX floor increased by 5.18 million shares or 4.90% on DoD basis, whereas the benchmark KSE100 index opened at 33,998.92, posted a day high of 34,443.91 and a day low of 33,946.93 points during last trading session while session suspended at 34,291.65 with net change of 406.56 points and net trading volume of 92.19 million shares. Daily trading volume of KSE100 listed companies increased by 10.0 million shares or 12.18 on DoD basis.
Foreign Investors remained in net selling positions of 6.38 million shares and net value of Foreign Inflow dropped by 3.53 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistanis investors remained in net selling positions of 5.09 and 1.30 million shares. While on the other side Local Individuals, Local Companies, NBFCs and Insurance Companies remained in net buying positions of 8.03, 1.51, 0.02 and 2.51 million shares but Banks, Mutual Fund and Brokers remained in net selling positions of 1.77, 1.11 and 1.01 million shares respectively.

Asian shares win reprieve as Trump seen delaying auto tariffs
Asian shares steadied on Thursday on news that U.S. President Donald Trump is planning to delay tariffs on auto imports, providing much needed relief to markets hit by a flare-up in trade tensions and on weak U.S. and Chinese economic data. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat, with both Australia and South Korea little changed. Japan’s Nikkei fell 0.6%, with banks hurt by weak earnings. On Wednesday, Wall Street shares extended their rebound, with the S&P 500 gaining 0.58% and the MSCI’s broadest gauge of world stocks bouncing back from a two-month low hit on Tuesday. The uptick came after three administration officials told Reuters on Wednesday that Trump is expected to delay a decision on tariffs on imported cars and parts by up to six months.
ECC allows 150MW additional power supply to Karachi
The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved a proposal of Power Division to allow additional supply of 150MW of power through national grid to K-Electric so as to address power shortage in Karachi. K-Electric faces substantial (500-600MW) shortfall in peak summer months. It had recommended the federal government for additional supply from the national grid including from Karachi-based nuclear power plants to meet peak demand and minimise public sufferings. It has been trying to secure about 500MW from the national grid in view of its inability to overcome capacity constraints on its own. The Power Division had moved a summary to the ECC in view of sufficient surplus capacity in the national network. The ECC approved a proposal of Power Division to allow additional supply of 150 MW of power through national grid to K-Electric.
Govt striving to promote business friendly environment: Alvi
President Dr Arif Alvi has said the government is undertaking every possible measure to promote business friendly environment in the country. Talking to a delegation headed by Chairman Pakistan Textile Exporters Association Khurram Mukhtar here on Wednesday, he said tough economic conditions of the country call for taking difficult decisions, but the government is committed to improve the economy.
Offshore drilling near Karachi coast completed
A joint venture of four oil exploration companies has completed the offshore drilling process near Karachi coast on Indus G-Block (Kekra-1) after four months. A consortium comprising of ExxonMobil, ENI, Oil and Gas Development Company, and Pakistan Petroleum Limited conducting the drill stem test to determine the real size of the oil and gas reserves in the Kekra-1 well, located around 280 kilometers away from Karachi, sources said. The planned drilling of 5,470 metres was achieved at a cost of Rs14 billion. The Drill Stem Test (DST) would be completed in the next three days. After the completion of the DST, a report will be prepared about the total quantity of the oil and gas reserves within a week, sources further said.
PM forms body to control rupee devaluation
A day when the value of the US dollar against the rupee touched an all-time high, Prime Minister Imran Khan set up a committee to control devaluation of the local currency and capital flight from Pakistan. The committee headed by Adviser to the PM on Finance Dr Hafeez Shaikh was formed on Wednesday during a meeting in which members of the Exchange Companies Association of Pakistan (ECAP) apprised the prime minister about various factors involved in capital flight and devaluation of the rupee against the dollar. The governor of the State Bank of Pakistan (SBP) is a member of the committee. The committee has been tasked to ascertain whether the provision of carrying $10,000 by anyone who travels abroad from Pakistan can be slashed down to $3,000 as proposed by the ECAP.

The Benchmark KSE100 Index have bounced back after getting support from a horizontal supportive region during last two trading sessions and have tried to format a morning shooting star on daily chart which may be confirmed today if index would succeed in closing above 34,660 points on daily basis during current trading session. Daily momentum indicators have generated bullish crossovers which is indication of start of a bullish rally but hourly momentum have changed to bearish side therefore a slight dip could be witnessed during current trading session at start. It's recommended to stay cautious because if index would not succeed in establishing momentum above 33,900 points then a serious free fall also could be witnessed. As of now index have supportive regions ahead at 34,000 & 33,700 points while on flipside index would face resistances at 34,660 & 35,200 points.