PSX Daily Market Review - 18th Jan 2019

Trading volume at PSX floor increased by 11.71 million shares or 12.62% on DoD basis, whereas the benchmark KSE100 index opened at 39,265.66, posted a day high of 39,294.47 and a day low of 38,780.37 points during last trading session while session suspended at 39,243.89 with net change of -28.05 points and net trading volume of 78.83 million shares. Daily trading volume of KSE100 listed companies increased by 9.66 million shares or 13.96% on DoD basis.
Foreign Investors remained in net selling positions of 12.12 million shares and net value of Foreign Inflow dropped by 4.20 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani investors remained in net selling positions of 9.40 and 2.74 million shares. While on the other side Local individuals, Local Companies, Banks, Mutual Fund and Insirance Companies remained in net buying positions of 9.16, 0.20, 0.77, 5.10 and 0.62 million shares but NBFSs and Brokers remained in net selling positions of 0.40 and 4.47 million shares respectively.

Asia stocks advance on U.S.-China trade relief
Asian stocks advanced on Friday as a report of progress in U.S.-China trade talks stirred hopes of a deal in their tariff dispute and supported risk sentiment. The Wall Street Journal reported on Thursday that U.S. Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports and suggested offering a tariff rollback during trade discussions scheduled for Jan. 30.
Forex reserves fall to below $7 billion
Pakistan foreign exchange reserves have declined to below $7 billion despite the fact that country received two billion dollars from Saudi Arabia recently. The country's foreign exchange reserves have declined to $6.9 billion during the week ended on January 11, 2019. The State Bank of Pakistan held reserves have reduced by $147 million in just one week period mainly due to loan repayment and other financings. The current reserves are enough to cover only six weeks imports bill of the country.
South Korea to import more Pakistani manpower: Envoy
South Korean Ambassador to Pakistan Kwak Sung-Kyu Thursday said his country would import more workforce from Pakistan in the coming days. He extended this assurance during a meeting with Special Assistant to Prime Minister on Overseas Pakistanis and Human Resource Development Zulfikar Bukhari here, said a press release issued here. Both the dignitaries discussed matters of mutual interest wherein South Korean side agreed to increase workers quota for Pakistan. During the meeting, the SAPM informed the ambassador that the country had exported only 700 workers to South Korea last year and expressed his government’s desire to enhance the numbers. Meanwhile, South Korea had also showed keen interest to invest in Pakistan Railways to further improve its capacity. The Ambassador also showed confidence in the tourism industry of Pakistan and said that tourism was among one of the sectors, which possessed huge potential.
PSIC to be strengthened through reforms
Punjab Minister for Industries & Trade Mian Aslam Iqbal has said that the Punjab Small Industries Corporation (PSIC) has to play effective role for the promotion of small & medium industries in the province. He stated this while presiding over a meeting regarding restructuring plan of PSIC here on Thursday. Comprehensive plan of restructuring PSIC was reviewed in the meeting. Consultant of Hassan Naeem & Company briefed the meeting about the restructuring plan. Secretary Industries Nadeem ur Rehman, MD PSIC and concerned officers attended the meeting. Addressing the meeting, Mian Aslam Iqbal said that the PSIC will be strengthened and made fully functional through effective reforms. He said in the light of recommendations this institute will be reorganized.
PIA airlifted 860 tonnes of cargo from China to Pakistan last year
Pakistan International Airlines (PIA) has airlifted 860 tonnes of cargo from China to Pakistan during the last year, registering around 100 percent increase as compared with the preceding year. "The national flag carrier transported 860 tons of cargo in the year 2018 while it airlifted 460 tonnes in 2017," Pakistan International Airlines (PIA)'s Country Manager to China, Hong Kong, and Macau, Nasir Jamal Malik said on Thursday.

The Benchmark KSE100 have bounced back after completing its correction on weekly chart and right now it have confirmed its daily evening shooting star on daily chart while daily momentum indicators have turned their direction towards bearish side by creating bearish crossovers. As of now it’s expected that index would face strong resistance at 39,660 points while supportive regions at 39,000 and 38,500 would try to support index against current pressure. It’s recommended to stay on selling side and selling on strength would be beneficial during current trading session. If index would succeed in sliding below 38,500 points till day end today then a new bearish trend would be witnessed in coming week. But it’s recommended to post strict stop loss at 39,660 points on short positions.