Previous Session Recap
Trading volume at PSX floor increased by 8.57 million shares or 5.81% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 45,835.14, posted a day high of 46,000.95 and a day low of 45,427.20 during last trading session. The session suspended at 45,478.63 with net change of -323.10 and net trading volume of 85.23 million shares. Daily trading volume of KSE100 listed companies increased by 11.52 million shares or 15.63% on DoD basis.
Foreign Investors remained in net selling position of 0.29 million shares and net value of Foreign Inflow increased by 0.33 million US Dollars. Categorically, Foreign Individual and Overseas Pakistanis remained in net buying positions of 0.02 and 0.61 million shares but Foreign Corporate Investors remained in net selling position of 0.91 million shares. While on the other side Local Individuals, NBFCs, Mutual Funds, Brokers and Insurance Companies remained in net buying positions of 4.88, 0.07, 0.98, 3.18 and 1.23 million shares but Local Companies, and Banks remained in net selling positions of 9.87 and 1.19 million shares respectively.
Analytical Review
Resource stocks jump in Asia as oil extends rally
Resource stocks were on a roll in Asia on Thursday as oil prices hit heights not seen since late 2014 and ignited a rally across commodities, though the potential boost to inflation globally also put some pressure on fixed-income assets. Resource stocks were the big winners driving Australia’s main index up 0.6 percent. Japan’s Nikkei gained 0.6 percent, led by a 2.9 percent rise in basic materials. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.8 percent, with energy up over 2 percent. E-Mini futures for the S&P 500 rose 0.1 percent. Wall Street had also seen hefty gains in the energy and industrial indexes, though that was offset by softness in sectors such as consumer staples and financials.
Ginning factories see 8pc increase in cotton arrival
The cotton arrival at ginning factories has gone up by 7.94 percent till April 15 compared to the corresponding period last year, disclosed a fortnightly report on cotton arrival resealed by Pakistan Cotton Ginners Association (PCGA). The report revealed that over 11.579 million bales of cotton arrived at various ginneries in the country on April 15, 2018 as compared to arrival of 10.727 million bales during the corresponding period last season. Of which 1,12,09,312 million bales were sold, leaving an unsold stock of 3,69,869 bales with the ginners, on April 15, according to the data. The textile mills in Pakistan consumed 10.992 million bales, while another 2,16,615 bales of cotton were sold to exporters, according to the data. Ginneries in Punjab recorded arrival of 73,25,758 bales against the last year arrival of 69,40,071 bales showing an increase of merely 5.56 percent. Sindh ginneries recorded arrival of 42,53,423 bales while last year Sindh received 37,87.111 bales 12.31percent more.
CPPA proposes increase in electricity price
Central Power Purchasing Agency (CPPA) has proposed an increase of Rs 0.4437 per unit in electricity price, under fuel price adjustment, for the month of March for ex-Wapda Discos. According to the petition, submitted by CPPA with National Electric Power Regulatory Authority (Nepra) total energy generated in March 2018 was 8740.90 GWh at a total price of Rs 53.95 billion which is Rs 6.17 per kWh. The net electricity delivered to power distribution companies was 8468.84 GWh at cost of Rs60.015 billion or 7.086 per kWh. Out of total electricity generation, losses stood at 3.11 per cent. It is pertinent to mention here that in February the total electricity generation, losses were 2.25 per cent. Since the actual cost of generation was Rs7.086 per unit in the period under review against reference price of Rs6.6429 per unit therefore it has requested an increase of Rs 0.4437 per.
Rs474bn approved for Bhasha dam
The Executive Committee of the National Economic Council (Ecnec) on Tuesday approved Rs474 billion for the construction of Diamer-Bhasha Dam to help the country tackle two major issues—water shortage and power generation. The Ecnec meeting, chaired by Prime Minister Shahid Khaqan Abbasi, approved the much-awaited funding for the project. The delay was due to reluctance from international financial institutions and China. The project is expected to complete in five years. As per proposed plan, the dam will have a 6.4 million acre foot (MAF) live storage capacity and installed power capacity of 4,500 MW. After completion, the project will increase national water storage capacity of Pakistan from 38 days to 45 days and will enhance life span on downstream reservoirs including Tarbela Dam.
Punjab okays two uplift schemes
The Punjab Provincial Development Working Party has approved two development schemes of health sector with an estimated cost of Rs 410.972 million. These schemes were approved in the 60th meeting of PDWP of current fiscal year 2017-18, presided over by Chairman P&D Muhammad Jahanzeb Khan. The approved development schemes are: National Program for Prevention & Control of Avian Influenza, Punjab at the cost of Rs 89.664 million and Roll Back Malaria Control Programme, Punjab at the cost of Rs 321.308 million.–INP
Market is expected to remain volatile therefore it'ss recommended to stay cautious while trading today.
Resource stocks were on a roll in Asia on Thursday as oil prices hit heights not seen since late 2014 and ignited a rally across commodities, though the potential boost to inflation globally also put some pressure on fixed-income assets. Resource stocks were the big winners driving Australia’s main index up 0.6 percent. Japan’s Nikkei gained 0.6 percent, led by a 2.9 percent rise in basic materials. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.8 percent, with energy up over 2 percent. E-Mini futures for the S&P 500 rose 0.1 percent. Wall Street had also seen hefty gains in the energy and industrial indexes, though that was offset by softness in sectors such as consumer staples and financials.
The cotton arrival at ginning factories has gone up by 7.94 percent till April 15 compared to the corresponding period last year, disclosed a fortnightly report on cotton arrival resealed by Pakistan Cotton Ginners Association (PCGA). The report revealed that over 11.579 million bales of cotton arrived at various ginneries in the country on April 15, 2018 as compared to arrival of 10.727 million bales during the corresponding period last season. Of which 1,12,09,312 million bales were sold, leaving an unsold stock of 3,69,869 bales with the ginners, on April 15, according to the data. The textile mills in Pakistan consumed 10.992 million bales, while another 2,16,615 bales of cotton were sold to exporters, according to the data. Ginneries in Punjab recorded arrival of 73,25,758 bales against the last year arrival of 69,40,071 bales showing an increase of merely 5.56 percent. Sindh ginneries recorded arrival of 42,53,423 bales while last year Sindh received 37,87.111 bales 12.31percent more.
Central Power Purchasing Agency (CPPA) has proposed an increase of Rs 0.4437 per unit in electricity price, under fuel price adjustment, for the month of March for ex-Wapda Discos. According to the petition, submitted by CPPA with National Electric Power Regulatory Authority (Nepra) total energy generated in March 2018 was 8740.90 GWh at a total price of Rs 53.95 billion which is Rs 6.17 per kWh. The net electricity delivered to power distribution companies was 8468.84 GWh at cost of Rs60.015 billion or 7.086 per kWh. Out of total electricity generation, losses stood at 3.11 per cent. It is pertinent to mention here that in February the total electricity generation, losses were 2.25 per cent. Since the actual cost of generation was Rs7.086 per unit in the period under review against reference price of Rs6.6429 per unit therefore it has requested an increase of Rs 0.4437 per.
The Executive Committee of the National Economic Council (Ecnec) on Tuesday approved Rs474 billion for the construction of Diamer-Bhasha Dam to help the country tackle two major issues—water shortage and power generation. The Ecnec meeting, chaired by Prime Minister Shahid Khaqan Abbasi, approved the much-awaited funding for the project. The delay was due to reluctance from international financial institutions and China. The project is expected to complete in five years. As per proposed plan, the dam will have a 6.4 million acre foot (MAF) live storage capacity and installed power capacity of 4,500 MW. After completion, the project will increase national water storage capacity of Pakistan from 38 days to 45 days and will enhance life span on downstream reservoirs including Tarbela Dam.
The Punjab Provincial Development Working Party has approved two development schemes of health sector with an estimated cost of Rs 410.972 million. These schemes were approved in the 60th meeting of PDWP of current fiscal year 2017-18, presided over by Chairman P&D Muhammad Jahanzeb Khan. The approved development schemes are: National Program for Prevention & Control of Avian Influenza, Punjab at the cost of Rs 89.664 million and Roll Back Malaria Control Programme, Punjab at the cost of Rs 321.308 million.–INP
Technical Analysis
The Benchmark KSE00 Index slipped in negative zone after retesting a major resistant trend line during last trading session, said trend line was supporting index previously but three days ago index have succeeded in sliding below that trend line and now it would react against any bullish rally in coming days. For current trading session index have supportive region ahead from a rising trend line but major supportive regions are still far away at 45,063 and 44,860 points. For a zig zag move with spikes index need to open with a negative gap below said trend line which falls at 45,431 points. Daily and Weekly momentum indicators are in bearish direction and resistant objects are also moving downward therefore it’s expected that index would remain under pressure after an intraday spike before day end.
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