PSX Daily Market Review - 18th July 2018

Trading volume at PSX floor dropped by 5.51 million shares or 3.73% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 39,658.99, posted a day high of 40,012.61 and a day low of 39,333.49 during last trading session. The session suspended at 39,932.98 with net change of 267.21 and net trading volume of 86.40 million shares. Daily trading volume of KSE100 listed companies dropped by 6.82 million shares or 7.31% on DoD basis.
Foreign Investors remained in net selling position of 6.74 million shares and net value of Foreign Inflow dropped by 1.65 million US Dollars. Categorically, Foreign Individuals remained in net buying positions of 0.01 million shares but Foreign Corporate and Overseas Pakistani investors remained in net selling positions of 6.63 and 0.12 million shares. While on the other side Local Individuals, Local Companies and Insurance Companies remained in net buying positions of 11.90, 6.31 and 2.71 million shares but Banks, NBFCs, Mutual Fund and Brokers remained in net selling positions of 0.66, 0.16, 11.51 and 2.30 million shares respectively.

Japan shares jump as yen bows to strong dollar
Asian shares followed Wall Street higher on Wednesday as a bullish outlook from the head of the U.S. central bank buoyed the dollar, lifted Tokyo shares to a one-month top and sent gold to a one-year trough. Japan's Nikkei .N225 leapt out of the blocks with a 1 percent gain as a weakening yen promised to fatten exporters' profits. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.16 percent and South Korea's market .KS11 0.85 percent. Federal Reserve Chairman Jerome Powell stuck with an upbeat assessment on the U.S. economy while downplaying the impact of global trade risks on the outlook for rate rises.
Pakistan, Germany to set up green energy forum
Pakistan and Germany on Tuesday signed a Memorandum of understanding for establishing Pakistan German Renewable Energy Forum (PGREF). The Federal Minister for Energy Syed Ali Zafar and Ambassador of Federal Republic of Germany to Pakistan Martin Kobler were both present on the occasion. Addressing the ceremony of signing of MoU between Pakistan and Germany for establishing Pakistan German Renewable Energy Forum (PGREF), the Federal Minister for Energy, Syed Ali Zafar said that newly established renewable forum would fortify Pakistan's efforts to capitalize available potential of clean and green energy.
Govt plans Tangir Dam to power Bhasha Dam construction
To meet electricity requirements of the Diamer Bhasha Hydro Project (DBHP) during construction, the government is planning to construct 15 MW Tangir Hydropower Project in Gilgit Baltistan which will increase the cost of the project by Rs6 billion. The proposal will be submitted to the upcoming elected government and if they approved it the cost of Diamer Bhasha Dam component will increase from the ECNEC approved cost of Rs474 billion to Rs480 billion, official source told The Nation here Tuesday. According the official documents earlier it was decided that the position paper regarding inclusion of 15 MW Tangir Hydropower Project into Diamer Bhasha Dam Project will be processed by the Ministry of Water Resources.
FBR unlikely to advise extension to amnesty scheme
The Federal Board of Revenue (FBR) would unlikely to recommend next government to extend tax amnesty scheme. "Although the new government after upcoming general election will decide to extend the tax amnesty scheme, which is expiring on July 31 yet FBR would not recommend the government to give further extension to the scheme," said an official of the FBR. The FBR would start taking action against those who are not declaring their assets after expiry of the scheme, he added. The government in April this year had announced two tax amnesty schemes, namely, Foreign Assets (Declaration and Repatriation) Ordinance, 2018 for undisclosed foreign assets and Voluntary Declaration of Domestic Assets Ordinance, 2018 for undisclosed income and domestic assets.
SECP concludes regulatory regime consultations
Securities and Exchange Commission of Pakistan (SECP) has concluded its efforts to introduce regulatory regime for registration and governance of professional valuers. The SECP came to this decision after conducting consultative sessions with various stakeholders, including State Bank and Pakistan Banks Association (PBA), which represented the entire banking industry, i.e., the largest client of professional valuers. The SECP also invited comments from professional valuers during two roundtable meetings and through placement of draft registration regulations on the SECP's website. The SECP has observed that State Bank, being the regulator of banking industry is already supervising the valuation services through PBA wherein the professional valuers have to get registered with the PBA.

DGKC, MLCF, PAEL, TRG and PSO may lead market in positive direction.

The Benchmark KSE100 Index had bounced back after completing its 61.8% correction on daily chart during last trading session and right now its heading towards 40,430 points where it’s capped by a horizontal resistant region. Daily Stochastic and MAORSI are trying to generate bearish crossovers but hourly and weekly momentum is in bullish mode which would lead index for expansion of current correction towards 40,500 and if penetration of that region would occur than next targets would be 40,800 and 41,130 points in coming days. Basically, 40,430 points falls on 50% correction of previous bearish rally therefore it would try to resist against current bullish momentum therefore its recommended to stay cautious around that region. On supportive side index have supportive regions at 39,250 and 38,800 points.
For current trading session it’s recommended to initiate buying on dip with strict stop loss of 39,200 points. As index is moving in a bearish trend channel and fourth wave of Elliot wave is being formatted therefore it’s recommended to stay cautious while completion of 50% or 61.8% correction of third wave would be completing because after completing those corrections around 41,432 and 42,100 points index would start fifth and final wave of this Elliot wave. During current trading session DGKC, MLCF from Cement sector, PSO from oil sector could perform in positive direction, while PAEL, ISL and TRG would try to support these shares in maintaining positive momentum.