PSX Daily Market Review - 17th Jan 2019

Trading volume at PSX floor dropped by 29.47 million shares or 24.11% on DoD basis, whereas the benchmark KSE100 index opened at 39,614.20, posted a day high of 39,622.47 and a day low of 39,271.94 points during last trading session while session suspended at 39,225.41 with net change of -342.24 points and net trading volume of 69.18 million shares. Daily trading volume of KSE100 listed companies dropped by 20.12 million shares or 22.53% on DoD basis.
Foreign Investors remained in net selling positions of 12.63 million shares and net value of Foreign Inflow dropped by 3.57 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani investors remained in net selling positions of 12.61 and 0.02 million shares. While on the other side Local individuals, Local Companies, Banks, NBFCs and Brokers remained in net buying positions of 0.85, 6.91, 1.20, 0.16 and 5.61 million shares but Mutual Fund and Insurance Companies remained in net selling positions of 1.04 and 1.43 million shares respectively.

Asia shares falter on China unease, pound finds some peace
Asian share markets faltered on Thursday as unease over China’s economic outlook eroded early gains, though an anti-climactic end to the latest chapter in the Brexit saga did offer sterling a moment’s peace. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged down 0.1 percent in thin trade, while E-Mini futures for the S&P 500 ESc1 slipped 0.3 percent. Japan's Nikkei .N225 reversed course and dropped 0.3 percent.
Foreign direct investment jumps 17pc in December
The foreign direct investment (FDI) jumped by 17 per cent during December 2018, according to latest data released by the State Bank of Pakistan (SBP) on Wednesday. The FDI increased to $319 million during December from $272.8m in the same month last year. Higher inflows during the month improved overall six-month FDI figures since total direct investment during July-Nov slumped by 35pc.
ECC allows duty-free cotton imports
The government on Tuesday ordered immediate clearance of about Rs36 billion refund claims of exporters and allowed tax and duty-free import of cotton in addition to mandating the payment of duties and taxes on import of vehicles in foreign exchange. The decisions were taken at a meeting of the Economic Coordination Committee (ECC) of the Cabinet presided over by Finance Minister Asad Umar. In response to demands of the textile industry, the ECC approved withdrawal of customs duty, additional customs duty and sales tax on import of cotton effective Feb 1-June 30, 2019.
‘2019 to be year of industrial cooperation between China and Pakistan’
China and Pakistan agreed on Tuesday to make 2019 the ‘year of industrial, socio-economic and agriculture cooperation’ as Beijing promised to despatch a series of business delegations over the next two months to move forward on at least four special industrial zones during the year. As a follow up to the recently concluded Joint Cooperation Committee (JCC) of the China-Pakistan Economic Corridor (CPEC), Minister for Planning and Development Makhdum Khusro Bakhtyar and Chinese Ambassador to Pakistan Yao Jing had a meeting here on Tuesday regarding the visits of Chinese investors to the country, according to a press release issued by the commission.
PM Khan forms committee to boost trade with Turkey
Prime Minister Imran Khan has constituted an eight-member ministerial committee to negotiate a long-term Strategic Economic Framework (SEF) arrangement with Turkey. This comes as a follow-up of the prime minister’s recent visit to Turkey during which the two countries had agreed to putting in place a framework to enhance bilateral economic cooperation with a special focus on trade and investment.

The Benchmark KSE100 index is still not being able to close above its correction levels of last bearish rally and right now it’s being capped by two major resistant regions at 39,960 and 40,200 points where two strong trend lines are generating crossovers with horizontal resistances. Daily stochastic is trying to generate bearish crossovers while intraday momentum indicators have lost their strength and they have generated bearish crossovers therefore some pressure could be witnessed on index during current trading session. Index has supportive regions at 39,150 and 38,600 during current trading session.
PSO is caged in a triangle on daily chart and it’s going to face strong resistances at 242 and 244 Rs. ATRL have a strong supportive region between 127 to 128 Rs and it would try to bounce back towards 134.10 where it would face strong resistance. MLCF would try to find support at 43.60 but breakout of that region would call for a free fall towards 42 onward. PAEL have strong resistances ahead at 29.20 and 29.60.