PSX Daily Market Review - 16th Sep 2019

Trading volume at PSX floor dropped by 82.75 million shares or 44.53% on DoD basis, whereas the benchmark KSE100 index opened at 31,614.09, posted a day high of 31,630.07 and a day low of 31,279.83 points during last trading session while session suspended at 31,481.31 points with net change of -65.30 points and net trading volume of 82.91 million shares. Daily trading volume of KSE100 listed companies dropped by 62.38 million shares or 42.94% on DoD basis.
Foreign Investors remained in net selling positions of 1.38 million shares and net value of Foreign dropped by 1.08 million US Dollars. Categorically, Foreign Individuals & Overseas Pakistanis remained in net selling positions of 0.16 and 1.83 million shares but Foreign Corporate remained in net buying positions of 0.62 million shares. While on the other side Local Individuals and Banks remained in net buying positions of 1.91 and 1.26 million shares but Local Companies, NBCFs, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 1.33, 0.33, 1.19, 1.72 and 0.93 million shares respectively.

Oil surges, stock futures slip after attack on Saudi facility
Oil prices surged to four-month highs on Monday while Wall Street futures fell and safe-haven bets returned after weekend attacks on Saudi Arabia’s crude facilities knocked out more than 5% of global oil supply. U.S. crude futures were last up 11% at $61.10 a barrel, coming off highs on expectations other global oil suppliers would step in to lift output. Brent crude soared 13% at $68.06 after earlier rising to $71.95. Yemen’s Iran-backed Houthi rebel group had claimed responsibility for the attack, which hit the world’s biggest oil-processing facility but a senior U.S. official told reporters on Sunday that evidence indicated Tehran was behind it. The attacks heightened investor worries about the geopolitical situation in the region and worsening relations between Iran and the United States. Those fears powered safe-haven assets, with prices for gold climbing 1% in early Asian trade to $1,503.09.
Saudi, Gulf stocks fall after attack on Aramco oil plants
Saudi stocks plunged 2.3 per cent as the market opened on Sunday, after attacks on two plants at the heart of the kingdom's oil industry a day earlier knocked out more than half of Saudi crude output. Sunday's decline extended a losing spree for Saudi stocks, which in recent weeks have been hit by expensive valuations, weak oil prices and concerns about the economic outlook. The drone attacks were carried out by Yemen's Houthi group, its military spokesman said on Al Masirah TV. The index has lost all its gains this year and is down about 18pc from its 2019 high of 9,403 points seen in early May. On Sunday, the index was down 1.8pc year-to-date.
UAE regulator not optimistic on Boeing 737 MAX return this year
The head of the United Arab Emirates' General Civil Aviation Authority (GCCA) said on Sunday he was not optimistic that the Boeing 737 MAX would return to operations this year and that the first quarter of 2020 was more likely. The 737 MAX has been grounded since March while Boeing updates flight control software at the centre of two fatal crashes in Indonesia and Ethiopia that together killed 346 people within a span of five months. Boeing Co is targeting regulator approval for the fixes in October, though the United States Federal Aviation Administration (FAA) has said it does not have a firm time for the aircraft to be flying again. The GCAA will conduct its own assessment to allow the MAX to return to UAE airspace, rather than follow the FAA, Director General Said Mohammed al-Suwaidi told reporters in Dubai.
SCCI seeks relaxation in axle load regime
President Sarhad Chamber of Commerce and Industry, Faiz Muhammad Faizi on Friday called for bringing relaxation in the Axle Load Regime and providing equal facilities to make the KP industries competitive with other provinces. He said KP industries are already reeling through the prolonged impact of terrorism and unfavorable conditions. He demanded deferment of Axle Load Regime till resumption of freight train service for KP. He furthermore called to provide equal facilities to businesses there, like given to industries in other provinces.
ITCN Asia to take place from Sept 17 to 19 in Karachi
ITCN Asia, launched in 2001, is now being organized for the 19th consecutive year, and has grown to become the biggest IT & telecom event in Pakistan. Besides local companies, some of the biggest global brands will showcase their state-of-the-art products and services, allowing the user community to get exposure to a wide range of technology and solutions under one roof. Most importantly, it would provide an opportunity for business-to-business alliances, leveraging their mutual strengths. ITCN Asia Exhibitions & Conferences, organized by the country’s biggest exhibitions organizer, Ecommerce Gateway Pakistan (Pvt.) Ltd., has been playing a pivotal role in land-marking the image of Pakistan on the world IT map, bringing in huge foreign and local investments into the country.

The Benchmark KSE100 Index have penetrated above its initial resistant region of 31,200 points during second last trading session and have retested its resistant trend line after penetrating that but it's expected that index would not succeed in maintaining above that region till day end today and day would end with a negative note, because a half moon formation is already completed on daily chart and index would try to entertain a daily triple top before 32,060 points. Today's closing below 31,200 will generate a strong bearish sentiment on daily chart as this formation would finalize a false breakout of a descending trend line but it's recommended to post a strict stop loss on short positions at 32,100 points to secure a continuity pattern risk. While it's also recommended to post trailing stop loss on long positions because if index would start sliding in downward direction which is highly expected then it would become a roller coaster and would gain strength on bearish momentum once closed below 30,700 points on daily chart.

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