PSX Daily Market Review - 17th April 2018

Trading volume at PSX floor dropped by 52.54 million shares or 26.62% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 46,095.83, posted a day high of 46,095.83 and a day low of 45,611.95 during last trading session. The session suspended at 45,682.24 with net change of -389.62 and net trading volume of 68.25 million shares. Daily trading volume of KSE100 listed companies dropped by 37.02 million shares or 35.16% on DoD basis.
Foreign Investors remained in net selling position of 28.22 million shares and net value of Foreign Inflow dropped by 39.45 million US Dollars. Categorically, Foreign Individual and Overseas Pakistanis remained in net buying positions of 0.21 and 1.52 million shares but Foreign Corporate Investors remained in net selling position of 29.94 million shares. While on the other side Local Individuals, Local Companies, Banks, Mutual Funds, and Insurance Companies remained in net buying positions of 4.73, 1.64, 0.45, 15.93 and 5.74 million shares but NBFCs remained in net selling positions of 0.57 million shares respectively.

Asia stocks edge up on steady China GDP, earnings in focus
Asia stocks rose modestly on Tuesday following data showing China’s economy grew a little faster than expected in the first quarter.The dollar was barely changed, with demand for safe-haven U.S. Treasuries ebbing as investor risk appetite improved in parts of the broader markets as investors took the view Western-led strikes on Syria were a one-off intervention.China’s economy grew a welcome 6.8 percent in the first quarter of 2018 from a year earlier, official data showed on Tuesday, unchanged from the previous quarter. But separate data showed March industrial output missed expectations and first-quarter fixed-asset investment growth slowed, tempering equity market gains. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.05 percent.
APCC approves Rs1,763b developmental outlay
The Annual Plan Coordination Committee (APCC) has approved a developmental outlay of Rs 1763 billion for the federal PSDP and provincial ADPs for the fiscal year 2018-19 and recommended to the National Economic Council to increase it to Rs2312 billion. “During current fiscal our developmental outlay was more than Rs 2000 billion and in the upcoming PSDP it is going to be above than Rs 2000 billion,” claimed federal minister for planning Ahsan Iqbal while talking to media during APCC meeting. The committee has set GDP growth target at 6.2 percent for 2018-19 against the provisional estimates of 5.8 percent during 2017-18. “The finance ministry has provided the Indicative Budget Ceiling (IBC) of Rs 750 billion but we have recommended its increase to Rs 1000 billion which is required for the continuation of momentum we have attained during past few years,” the minister said.
Russia waiting for formal invitation to invest in CPEC projects
Acting ambassador of Russian Federation Monday said that Russia was eagerly waiting for a formal invitation from China and Pakistan to invest in CPEC related projects. Vladirmir Berezyuk also said that a delegation of Russian businessmen will visit Pakistan very soon to explore new opportunities for investment. Addressing the members of the Faisalabad Chamber of Commerce & Industry (FCCI) here Monday, he mentioned the Russian cooperation in the development of Pak economy and told that Karachi Steel Mills and Gudhu Power Plant are examples of our mutual and highly productive cooperation.
APCC seeks Rs2.3tr for development in FY19
The Annual Plan Coordination Committee (APCC) on Monday approved a developmental portfolio of Rs1.763 trillion for next fiscal year with a request for its enhancement to Rs2.313tr by National Economic Council (NEC) to achieve economic growth rate of 6.2pc. The meeting presided over by Minister for Planning and Development Ahsan Iqbal was attended by ministers for planning from the provinces and special areas like Azad Kashmir and Gilgit-Baltistan.The overall indicative development budget of Rs1.763tr includes provincial Annual Development Plans (ADPs) of Rs1.013tr and federal Public Sector Development Programme (PSDP) of Rs750bn.
Growth is an illusion for textile millers
The hostility of big business to democracy in Pakistan seems to have diluted but the textile millers of Punjab do not conceal their deep rooted antagonism towards the democratic experiment in general and the PML-N government in particular. “Whatever its virtues globally, in Pakistan, democracy has failed to deliver. In nine plus years since General Musharraf’s exit the total debt has doubled from $42 billion to $85bn and the twin deficits have ballooned to unsustainable levels, thanks to the government’s botched priorities”, said Gohar Eijaz, an articulate leader of the textile lobby.
Market is expected to remain volatile therefore it'ss recommended to stay cautious while trading today.

The Benchmark KSE100 Index have touched its supportive region during last trading session by posting a day low at 45,610 points, as of now Index is standing at a very crucial stage because if it would penetrate 45,590 in downward direction then a new roam for further 500 points would become viable for bearish move. Daily and weekly momentums both are in bearish mode and most importantly MACD on both timeframes have changed its trend to bearish direction which would add more pressure on index. For current trading session 45,510 would try to provide some ground for index and if it would slide below that region then next target would 45,063 points. An intraday spike could be witnessed but its recommended to sell on strength with strict stop loss of 46,370 points because index would remain under pressure until it would close above 46,370 points in coming days.