PSX Daily Market Review - 17th Sep 2018

Trading volume at PSX floor increased by 7.77 million shares or 5.21% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 41,147.91, posted a day high of 41,230.69 and a day low of 40,790.06 during last trading session. The session suspended at 40,920.31 with net change of -120.60 and net trading volume of 80.63 million shares. Daily trading volume of KSE100 listed companies dropped by 12.87 million shares or 13.77% on DoD basis.
Foreign Investors remain in net selling positions of 9.73 million shares and net value of Foreign Inflow dropped by 8.51 million US Dollars. Categorically Foreign Individuals and Foreign Corporate remained in net selling positions of 0.04 and 11.99 million shares but Overseas Pakistanis investors remained in net buying positions of 2.29 million shares. While on the other side Local Individuals, Local Companies, Banks, Mutual Fund, Brokers and Insurance Companies remained in net buying positions of 0.35, 0.03, 1.28, 5.28, 1.27 and 0.62 million shares respectively but NBFCs remained in net selling positions of 0.05 million shares.

Asian shares tripped up by new U.S. tariff threat
Most Asian share markets slipped on Monday amid reports Washington was about to announce a new round of tariffs on Chinese imports, setting the stage for possible reprisals by Beijing. Liquidity was thin with Japan on holiday and moves in currencies and bonds were minor. Hong Kong markets opened as normal after a super typhoon brushed the city on its way to landfall in China’s Guangdong, the country’s most populous province.
Imran Khan as an iconoclast
Beating all odds and proving all his political opponents wrong those who used to say that Imran Khan doesn't know how to do politics, he has become the Prime Minister. After 22 years of his untiring political struggle, Imran Khan sworn as the 22nd Prime Minister of Pakistan, a country of almost 22 crores (220 million) population. By winning this general election Imran Khan created a new history. First, PTI emerged as the most popular national party who won seats from all the provinces of Pakistan. Secondly, Imran Khan has set a new record by winning all five constituencies from which he was contesting the election. Thirdly, PTI is the only party which not only retained its position in Khyber Pakhtunkhwa for the second consecutive term but also improved it. Finally, the party secured the majority seats in Karachi which was astonishing even for the local parties who had been ruling there from years.
CPEC to have positive impact on region
China and Pakistan Economic Corridor (CPEC) is a collection of infrastructure projects that is currently under construction in Pakistan. CPEC will not only benefit China and Pakistan but will have a positive impact on Iran, Afghanistan and India. CPEC is intended to rapidly modernize Pakistani infrastructure and strengthen its economy by the construction of modern transportation networks, numerous energy projects, and special economic zones.
Daral Khwar project completed
KP govt has achieved a milestone in energy sector by completing Daral Khwar hydropower project having generation capacity of 36.6MW. Daral Khwar hydropower project has been connected to national grid. The power project will earn Rs1.2 billion annually for provincial exchequer. Pakhtunkhwa Energy Development Organisation Chief Executive Officer Engr Syed Zainullah Shah said that Daral Khwar hydropower project is located in district Swat, at a distance of about 185km from Peshawar.He revealed that besides Daral Khwar project, a number of other power projects would start power generation during the year, which would earn billions of rupees for the province.
DFID, Karandaaz introduce PCEF
The Pakistan Credit Enhancement Facility (PCEF) was introduced to public and private sector stakeholders today in a conference co-hosted by Karandaaz Pakistan and UK's Department for International Development (DFID) in Islamabad. The local currency credit enhancement facility is being set up to address and overcome existing constraints in the supply of local financing to infrastructure projects and to help the development of the local financial market. This facility will contribute to addressing both Pakistan's infrastructure gaps, particularly for smaller projects and social infrastructure, and to the development of the financial sector which is underserving all but largest businesses."

The Benchmark KSE100 Index is trying to bounce back after completing its 61.8% correction on daily chart since last four consecutive trading session but bulls are still not succeeded in dragging index above its critical resistant region of 41,300 points because momentum indicators have a wide spread between each other while creating bullish crossover on daily chart. As of now index would face strong resistances from 41,300, 41,600 and 42,160 points regions while supportive regions are standing at 40,660 and 40,400 points respectively. In case of sliding below 40,400 points index would try to post double bottom on monthly chart at 39,500 points therefore it’s recommended to post strict stop loss 41,400 for all buying positions. Index have a chance to create a morning star on weekly chart but for that purpose it would need a lot of volume and some positive news from Govt.