PSX Daily Market Review - 17th Sep 2019

Trading volume at PSX floor increased by 1.51 million shares or 1.47% on DoD basis, whereas the benchmark KSE100 index opened at 31,825.85, posted a day high of 31,954.56 and a day low of 31,481.31 points during last trading session while session suspended at 31,928.55 points with net change of 447.24 points and net trading volume of 81.68 million shares. Daily trading volume of KSE100 listed companies dropped by 1.23 million shares or 1.49% on DoD basis.
Foreign Investors remained in net buying positions of 8.53 million shares and net value of Foreign increased by 6.16 million US Dollars. Categorically, Foreign Corporate & Overseas Pakistanis remained in net buying positions of 6.67 and 1.86 million shares. While on the other side Local Individuals and Brokers remained in net buying positions of 4.28 and 0.10 million shares but Local Companies, Banks, NBCFs, Mutual Fund and Insurance Companies remained in net selling positions of 0.94, 1.64, 0.03, 8.15 and 1.63 million shares respectively.

Oil trims gains but Middle East risks keep stocks on back foot
Oil shed some of its massive gains on Tuesday as the United States flagged the possible release of crude reserves, but the threat of military action over the attacks on Saudi oil facilities kept prices elevated and stocks under pressure. While equity market losses have not been large, shaky investor confidence continued to support safe-haven assets, with gold edging higher on Tuesday and Treasury prices rising. Investors otherwise broadly remained on the sidelines ahead of an expected interest rate cut from the U.S. Federal Reserve on Wednesday and the next round of U.S.-China trade talks on Thursday. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.6%. Chinese shares fell 0.85%, while Australian shares were down 0.27%. “There is certainly a risk-off tone, but I’m surprised the markets are not reacting more,” said Tsutomu Soma, general manager of fixed income business solutions at SBI Securities in Tokyo.
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.
PIA’s post-Haj op completes
PIA’s post-Haj operation for bringing back more than 82,000 Hujjaj from Saudi Arabia completed successfully with on time arrivals in Pakistan. This year PIA carried more than 82,000 hujjaj which was 25 percent more than previous year. PIA operated 290 Haj and Regular Scheduled flights from Jeddah and Madinah to Karachi, Lahore, Islamabad, Peshawar, Quetta, Multan, Faisalabad and Sialkot. The hujjaj of Sukkur and Rahim Yar khan were transported via Karachi and Lahore. The overall flight regularity and punctuality of haj flights during pre and post haj operation remained above 90 percent.

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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