PSX Daily Market Review - 18th May 2018

Trading volume at PSX floor dropped by 20.59 million shares or 26.56% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 42,272.84, posted a day high of 42,277.00 and a day low of 41,833.60 during last trading session. The session suspended at 41,869.65 with net change of -431.55 and net trading volume of 33.4 million shares. Daily trading volume of KSE100 listed companies dropped by 6.23 million shares or 15.71% on DoD basis.
Foreign Investors remained in net buying position of 0.86 million shares but net value of foreign Inflow dropped by 2.08 million US Dollars. Categorically, Foreign Individual and Corporate Investors remained in net selling positions of 0.02 and 2.05 million shares but Overseas Pakistanis remained in net buying positions of 2.93 million shares. While on the other side Local Individual, NBFCs and Mutual Funds remained in net selling positions of 8.02, 0.07 and 2.55 million shares but Local Companies, Banks, Brokers and Insurance Companies remained in net buying positions of 3.56, 0.27, 1.37 and 0.16 million shares respectively.

Asia stocks edge up, investors cautious on U.S.-China trade talks
Asian stocks edged up on Friday as investors kept a cautious watch on developments in U.S.-China trade negotiations, while the dollar was perched near a five-month peak against a basket of currencies thanks to the benchmark U.S. Treasury yield topping a seven-year high. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.05 percent higher. The index was headed for a 1 percent loss this week. Japan’s Nikkei rose 0.2 percent, South Korea’s KOSPI was up 0.25 percent and Australian stocks edged up 0.05 percent. Wall Street ended slightly lower on Thursday as investors grappled with U.S.-China trade tensions after U.S. President Donald Trump said that China “has become very spoiled on trade”.
The Opposition in the National Assembly on Thursday outright rejected the government’s tax amnesty scheme announced in the budget 2018-19.
However, it is expected that the budget will be passed by the lower house of parliament on Friday (today) for which members of treasury benches have been asked to ensure their presence in the maximum number. During a budget debate in the house, Leader of the Opposition Syed Khursheed Shah and another Pakistan Peoples Party (PPP) leader Syed Naveed Qamar termed the amnesty scheme a “move to facilitate the already rich people and further suppress the poor”. The opposition members also staged a walkout from the house, but later they joined the session after an interval of an hour.
Banker accused of defrauding national exchequer of Rs3bn remanded into NAB custody
A National Bank of Pakistan (NBP) official accused of involvement in embezzlement of up to Rs3 billion was on Thursday sent on 11-day physical remand after he confessed to the charges brought against him in an accountability court. Usman Saeed, who headed the Foreign Exchange Department of NBP at its main branch in Lahore, had been arrested by the National Accountability Court a day earlier and presented in court today. The accused admitted his guilt in court, saying: "I realised that I had made a mistake after issuing the payment. [Other] accused kept on blackmailing me; they took money on the promise of returning it." He told the court that he has so far issued payments to 12 parties.
Pakistan at bottom of agri R&D spending in South Asia
Senior Agriculture Economist, World Bank, Pakistan, Hans GP Jansen, has said that in Punjab yield gaps in major crops is hazardously high and yields are 30-50percent low in the neighbouring countries of the region, reasoning that Pakistan is at the bottom of agricultural R&D spending which is lower in South Asia . Speaking at a seminar on 'Successful rural development models in Pakistan' organized by Centre for Rural Economy (CRE) here, the senior agriculture economist said that the agriculture policy practicing in Pakistan became irrelevant due to rapid change of globalization and policy needs to have smart market reform and public investments & incentives.
ECC approves 3 pays to Steel Mills workers
The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved three months salaries for the workers of Pakistan Steel Mills Corporation (PSMC). Prime Minister Shahid Khaqan Abbasi Thursday chaired a meeting of the ECC at PM Office. The ECC has approved an amount of Rs1140 million as three months salaries (Jan to March, 2018) for the employees of PSMC. Pakistan Steel Mills employees staged a protest other day against non-payment of last four months’ salaries and other benefits. The protesters blocked the main railway line ML-1, causing trains to be delayed from reaching Karachi. However, the ECC approved three months salaries for the employees of PSMC.

The Benchmark KSE100 Index remained under pressure during last trading session and dropped drastically after retesting its resistant regions during last two trading session and right now it have supportive region ahead at a horizontal supportive region where two strong supportive trend lines are also creating a crossover with each other and these three supportive objects would try to resist against current bearish rally but if index would succeed in penetrating these objects in downward direction then further pressure would be witnessed on index in coming days. Daily and Weekly momentum indicators are in bearish mode and weekly MACD is trying to expand its bearish sentiment therefore its recommended to wait for a reversal sign on intraday and daily chart before initiating new buying. Index have supportive regions at 41,500 and 41,045 points for current trading session while resistant regions are standing at 42,420 and 42,860 points. For current trading session its recommended to stay side line.