PSX Daily Market Review - 18th April 2018

Trading volume at PSX floor increased by 2.6 million shares or 1.81% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 45,690.11, posted a day high of 45,881.84 and a day low of 45,484.94 during last trading session. The session suspended at 45,801.73 with net change of 119.49 and net trading volume of 73.71 million shares. Daily trading volume of KSE100 listed companies increased by 5.45 million shares or 7.99% on DoD basis.
Foreign Investors remained in net buying position of 0.36 million shares and net value of Foreign Inflow increased by 0.79 million US Dollars. Categorically, Foreign Individual and Overseas Pakistanis remained in net buying positions of 0.11 and 0.48 million shares but Foreign Corporate Investors remained in net selling position of 0.23 million shares. While on the other side Local Individuals, Banks and Mutual Funds remained in net buying positions of 3.70, 0.77 and 4.05 million shares but Local Companies, NBFCs, Brokers and Insurance Companies remained in net selling positions of 0.12, 0.14, 6.31 and 2.51 million shares respectively.

Asian shares edge ahead with Wall Street, but China lags
Asian shares crept ahead on Wednesday after Wall Street took heart from upbeat corporate earnings, though nagging concerns about trade barriers and the global growth outlook kept currencies and bonds subdued.Chinese markets also struggled even as Beijing boosted liquidity in the banking system. After opening up, Shanghai blue chips soon turned 0.2 percent lower. Late Tuesday, the PBOC unexpectedly announced it would cut the cash banks hold as reserves in a move that frees up lending for small firms but falls short of a broad monetary easing. The Shanghai index had hit a near one-year low after the United States banned American companies from selling components to Chinese telecom equipment maker ZTE Corp. MSCI’s broadest index of Asia-Pacific shares outside Japan bounced 0.5 percent, though that follows four straight sessions of losses. Japan’s Nikkei climbed 1.2 percent, with investors waiting for any developments on trade as Japanese Prime Minister Shinzo Abe meets President Donald Trump at his Mar-a-Lago resort.
Nepra to take legal action against K-Electric over gross violations
The National Electric Power Regulatory Authority (Nepra) on Tuesday took notice of the various violations committed by K-Electric and decided to initiate legal proceedings against the power provider. In addition to this, NEPRA also ordered K-Electric to immediately start the commissioning of Korangi Combined Cycle Power Plant (KCCPP) and Bin Qasim Power Station (BQPS) II “on alternate fuel as soon as possible,” read a statement issued by the authority. A five-member committee of Nepra visited K-Electric from April 11 to 13 to investigate the actual reason behind the unannounced load-shedding which K-Electric claim is due to the alleged curtailment of gas supply by Sui Southern Gas Company (SSGC) — owing to which consumers were suffering badly.
Rs8.27 trillion irregularities found in govt accounts
The Auditor General of Pakistan (AGP), Javaid Jahangir, has claimed that during the audit year 2017-18 auditors pointed out irregularities amounting to Rs8.276 trillion in the accounts of the federal government. It may be mentioned that this figure is almost double the amount allocated for the fiscal year’s federal budget that is Rs4.75tr. The AGP further claimed that irregularities amounting to Rs1.156 trillion were pointed out in the accounts of provincial governments. Mr Jahangir made these claims while chairing a recent meeting of the policy board of the Department of Auditor General of Pakistan (DAGP).
Govt needs to improve governance to make CPEC a success
- Former finance minister Dr Salman Shah on Tuesday said that government would have to improve the governance and to eliminate corruption to make China Pakistan Economic Corridor (CPEC) a success that can increase Pakistan's GDP up to $1000 billion by 2025. He said that Pakistan's military and judiciary are focusing on improving governance system in the country, which would improve the performance of the institutions. "Pakistani establishment and political parties realized and have consensus on economic growth importance as in case of failure there will be demographic and security challenges", he said while addressing the 10th anniversary of Swiss business council of Pakistan organized by Embassy of Switzerland in Islamabad. The event was attended by large numbers of ambassadors of different countries.
Miftah leaves for US to hold talks with WB, IMF
Advisor to PM on Finance Miftah Ismail left for Washington on Tuesday to hold talks with representatives of the World Bank (WB) and the IMF. The meeting is said to have key importance as the country is just a few weeks away from announcing its Federal Finance Bill for the financial year of 2018-19. Pakistan is set to unveil the federal budget on April 27. Pakistan had successfully completed a 36-month IMF programme, which started in 2013. At the end of the programme, the IMF had praised Pakistan for its fiscal discipline and reforms programme. Miftah Ismail is set to stay in Washington for three days where he is also set to hold meetings with US officials.–Xinhua
Market is expected to remain volatile therefore it'ss recommended to stay cautious while trading today.

The Benchmark KSE100 Index had bounced back for a spike during last trading session after getting support from a horizontal supportive region. As of index have resistant regions ahead at 45,960 and 46,370 points while supportive regions are standing at 45,500 and 45,063 points. Daily Stochastic and MAORSI are trying to generate crossovers for a bullish pull back but MACD just have turned to bearish direction therefore it would try to manipulate the momentum with help of weekly stochastic and MAORSI. A strong horizontal resistant line is also generating crossover with a descending trend line at 46,155 points and these both would strongly react against any bullish rally and would try to push index again in negative zone. It’s expected that index would start a new bearish rally after getting resistance from 46,155 or 46,370 points during current trading session, therefore its recommended to initiate selling on strength with strict stop loss of 46,370 points.