PSX Daily Market Review - 18th Aug 2017

Trading volume at PSX floor dropped by 19.98 million shares or 10.67%, DoD basis. Whereas, the Benchmark KSE100 Index opened at 44216.97, posted a day high of 44257.26 and a day low of 43044.12 during the last trading session while the session suspended at 43136.06 with a net change of -1050.90 points and net trading volume of 77.59 million shares. Daily trading volume of KSE100 listed companies dropped by 9.56 million shares or 10.97%, DoD basis.
Foreign Investors remained in net buying of 0.55 million shares but the net value of Foreign Inflow dropped by 3.26 million US Dollars. Categorically, Foreign Corporate Investors remained in a net selling position of 0.69 million shares but Overseas Pakistanis remained in a net buying position of 1.3 million shares. While on the other side, Local Individuals, Companies and Banks remained in net buying positions of 1.1, 1.22 and 3.69 million shares, respectively. Mutual Funds and Brokers remained in net selling positions of 7.16 and 2.0 million shares.

Asian stock investors joined a global retreat from riskier assets on Friday and the dollar wavered on growing doubts about U.S. President Donald Trumps ability to fulfill his economic agenda. MSCIs broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dropped 0.5 percent in early trade, but still looked set to gain 1.4 percent for the week after tensions between North Korea and the United States came off the boil. Japans Nikkei .N225 slid 1.2 percent as the yen rose, and looked set to lose 1.3 percent for the week. Overnight, Wall Streets major indexes slumped between 1.2 percent .DJI and 1.9 percent .IXIC. The S&P 500 index .SPX posted its biggest drop in three months.
A parliamentary committee on Thursday noted that Federal Board of Revenue (FBR) is harassing taxpayers by misusing Anti-Money Laundering Act. The Senate Standing Committee on Finance, which met under the chairmanship of Senator Saleem Mandviwlla, has discussed the alleged misuse of Anti-Money Laundering Act to harass taxpayers. The committee members noted that they had already expressed reservation at the time when committee was passing the AML bill, as FBR would misuse it. The committee directed FBR to submit quarterly report on implementation of AML Act.
The total liquid foreign reserves held by the country stood at $19,941.8 million on August 11. The weekly break-up of the foreign reserves position released on Thursday showed that foreign reserves held by the State Bank of Pakistan stood at $14,310.5 million and net foreign reserves held by commercial banks are $5,631.3 million. During the week ending 11th August, SBPs reserves decreased by $88 million to $14,311 million, due to payments on account of external debt servicing and other official payments.
A high-level delegation of the United States furniture manufacturers will visit Pakistan for five days from August 21 to tap new prospects of mutual investment in the field of furniture industry and further strengthen the existing bilateral trade relations with Pakistani counterparts. This was disclosed by Pakistan Furniture Council (PFC) chief Kashif Ashfaq on his returning home after two-week visit to the US as head of delegation. He termed his visit most successful as majority of the US furniture manufacturers in business-to-business meetings have shown keen interest in Pakistani handmade furniture products and desired for joint venture and investment .He said that the interested investors were invited to visit Pakistan and PFC will extend all out assistance and professional cooperation besides making arrangements for direct interaction with Pakistani furniture manufacturers in addition to fully fledged facilitation to them.
Prime Minister Shahid Khaqan Abbasi on Thursday assured the exporters of fullest support from the government for boosting the exports. The Prime Minister reiterated that govt was committed to facilitate the business community for which all the proposals and suggestions would be appreciated. The PM was talking to a delegation comprising of leading exporters of the country, which called on him at the PMs Chamber in the National Assembly. Minister for Commerce Prevaiz Malik, Miftah Ismail, Special Assistant to the PM on Economic Affairs were also present during the meeting.

The Market is expected to remain volatile today. We advice traders to exercise caution, Buying on dips and booking gains on strength is recommended.

The Benchmark KSE100 Index touched its double bottom after penetration of its supportive trend line on daily chart, and daily stochastic is attempting to generate a bullish crossover which would be the last hope for bulls, if succeeded. Breakout of 43000 will call for 42574 points and closing below that level would call for 41500 and 40500. For current trading session, a cautious trading approach is recommended as the index is standing at its supportive region and could start a new rally on either side. As of now index have resistant regions around 43776 and 44284 points.

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