PSX Daily Market Review - 17th Aug 2017

Trading volume at PSX floor dropped by 4.12 million shares or 2.15%, DoD basis. Whereas, the Benchmark KSE100 Index opened at 43899.45, posted a day high of 44332.15 and day low of 43751.57 during the last trading session while the session suspended at 44186.96 with a net change of 287.51 points and a net trading volume of 87.15 million shares. Daily trading volume of KSE100 listed companies increased by 1.76 million shares or 2.06%, DoD basis.
Foreign Investors remained in a net selling position of 3.88 million shares and the net value of Foreign Inflow dropped by 3.78 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani Investors remained in net selling positions of 2.61 and 1.2 million shares. While on the other side, Local Individuals, Companies and Brokers remained in net buying positions of 3.3, 5.6 and 0.1 million shares, respectively. Local Banks and Mutual Funds remained in net selling positons of 1.94 and 4.46 million shares.

Asian stocks edged higher on Thursday as tensions between the United States and North Korea came off the boil, while the Federal Reserves concerns about weak U.S. inflation weighed on the dollar. MSCIs broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.5 percent. Japans Nikkei .N225 slipped 0.1 percent, weighed down by a stronger yen as the dollar wilted and shrugging off data showing the countrys exports rose for an eighth straight month in July. Australian shares gained 0.1 percent and the Australian dollar AUD= inched up 0.1 percent to $0.7931 after the country added 27,900 jobs in July, beating expectations for an increase of 20,000. The unemployment rate remained at 5.6 percent, as expected, although full-time employment fell by 20,300.
A Chinese proposal to set up a refinery along with a downstream petrochemical complex near Karachi is advancing steadily as requests for 500-1,000 acres has been submitted to the provincial governments of Sindh and Balochistan. The estimated cost of the project is about $4 billion. This was disclosed by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Zubair M. Tufail after a meeting with the visiting Chinese delegation, led by Ms Li-Jial, Director Tianchen Engineering Corporation (TCC), at the Federation House on Wednesday. Ms Li-Jial and Mr Tufail agreed in principle to establish and exchange investment missions to further enhance trade relations between the two countries.
Foreign direct investment (FDI) jumped 163 per cent to $222.6 million in July on a year-on-year basis, the State Bank of Pakistan (SBP) reported on Wednesday. FDI continued showing the upward trend that began in the second half of the preceding fiscal year. It grew 4.6pc in 2016-17. Pakistan received $2.4 billion in 2016-17, highest since the present government came into power four years ago. FDI was $1.45bn in 2012-13. Growth in FDI is encouraging, although the main contributor to net inflows has been China, which is investing heavily under the China-Pakistan Economic Corridor (CPEC).
The government may soon impose a surcharge on the sale of all transport fuels to enhance storage infrastructure and product stockpiles for strategic defence requirements. This is part of the recommendations of a high-powered committee on strategic planning for oil and gas stocks and storages comprising top officials of the various arms of the federal government, military and private sector. The committee also seeks to beef up security at all key oil and gas installations and extend security cover to additional pipelines and other infrastructure. “No decision has so far been made, but a proposal was discussed to levy a storage charge at the rate of 10 paisa per litre on petroleum products to enhance strategic reserves to at least 45 days of consumption,” a senior official told Dawn.
The deadlock between the government the All Pakistan Oil Tankers Association (APOTA) still persist and the association warned of discontinuing oil supply if their demands were not accepted till August 20. “Our talks with National Highway Authority (NHA) and Oil and Gas Regulatory Authority (Ogra) have failed and the prime minister should resolve the issue till August 20 otherwise APOTA will discontinue oil supply,” said APOTA Chairman Yousaf Shawani.

Today ATRL, HTL, PAEL and TRG may lead the market in positive direction

The Benchmark KSE100 Index found support from its triple bottom for a breather, during the last two trading sessions. As of now it has supportive regions around 43765 and 43490 along with 43249 on its way towards 43000. Closing below 43000 will call for 41500 and 40500. Index may start a bearish correction in coming days as a breather is necessary to break its previous low. Therefore, trading with strict stop loss is recommended for the current trading session. Index will try to touch 44516 and 44900 during this correction phase before start of a new bearish rally.

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