PSX Daily Market Review - 19th Dec 2018

Trading volume at PSX floor increased by 23.80 million shares or 35.61% on DOD basis whereas the Benchmark KSE100 index opened at 38,259.20, posted a day high of 38,323.44 and day low of 37.979.03 during last trading session while session suspended at 38,115.81 points with net change of -193.36 points and net trading volume of 68.15 million shares. Daily trading volume of KSE100 listed companies increased by 22.02 million shares or 47.74% on DOD basis.
Foreign Investors remained in net selling positions of 1.86 million shares and net value of Foreign Inflow dropped by 1.83 million US Dollars. Categorically, Foreign Individuals, Foreign Corporate and Overseas Pakistanis investors remained in net selling positions of 0.16, 1.54 and 0.17 million shares. While on the other side Local Individuals, NBFCs Mutual Fund and Insurance Companies remained in net selling positions of 2.35, 1.54, 1.65 and 10.06 million shares respectively but Local Companies, Banks and Brokers remained in net buying positions of 7.80, 3.66 and 5.43 million shares.

Asia tenses for Fed call, oil slide boosts bonds
Asian share markets played second string to bonds on Wednesday as a spectacular fall in the price of oil spurred speculation the U.S. Federal Reserve might be done with tightening after its policy meeting later in the session. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.4 percent, while Shanghai blue chips .CSI300 were flat. Japan's Nikkei .N225 steadied after an early dip and E-Mini futures for the S&P 500 ESc1 added 0.4 percent. Oil had stolen the show as a supply glut saw Brent shed almost 6 percent overnight. U.S. crude was last down another 13 cents at $46.11 a barrel, while Brent LCOc1 recouped just 4 cents to $56.30.
Top auditor points out Rs5.8 trillion irregular spending
The Auditor General of Pakistan (AGP) has pointed out mismanagement, irregularities and weak financial control of Rs5.8 trillion worth of public money by 44 federal ministries during audit year 2017-18. The audit objections over accounts of the federal government for 2017-18 are far greater — 87 per cent higher — than those of 36 ministries involving an amount of Rs3.12tr a year before, showing deterioration in financial control over the public money instead of improvement.
China's EXIM Bank vows to continue support
President of China's EXIM Bank Zhang Qingsong Tuesday said that with regard to investment, Pakistan had become the top trading partner of the bank and vowed to continue support for the country in future. President of China's EXIM Bank Zhang Qingsong expressed these view in a meeting with Federal Minister for Planning, Development & Reforms Makhdum Khusro Bakhtyar, said a press release issue here.
CPPA seeks Rs 0.3338 per unit cut in power tariff
Central Power Purchasing Agency (CPPA) has proposed a decrease of Rs 0.3338 per unit in power tariff, under fuel price adjustment, for the month of November for ex-Wapda DISCOs. As per the data, the total energy generation from all sources in November 2018 was recorded at 7545.63 GWh which was 27 percent lower than 9573.87 GWh of energy generated in October with the cost of Rs 5.4448 per unit.
High input cost, water shortage hit cotton production
Cotton production has fallen 6.77 per cent to 9.962 million bales during the current season up to Dec 15 due to water shortages and rise in input costs. This year’s shortfall would mark the fourth consecutive year of production declines. The cotton production data for last fortnight (Dec 1-15) paint a gloomy picture for both of the leading cotton producing provinces. Production in the country’s largest cotton producing province, Punjab, suffered a 9.64pc decline after production fell to 5.918m bales against the 6.55m produced during the same period last year.

The Benchmark KSE100 Index have supportive region ahead at 37,930 and 37,700 points where its being supported by a rising trend line along with a horizontal supportive, during last trading session index have tried to penetrate its supportive trend line but could not succeed in closing below said trend line therefore a pullback situation have been created and with yesterday’s closing daily momentum indicators have turned their direction slightly to bullish side and right now it’s expected that index would try to take an intraday spike during current trading session because intraday momentum indicators would also support this reversal. On intraday basis it’s recommended to initiate buying with strict stop loss of 37,700 points and in case of breakout of 37,700 it’s recommended to adopt cut and reverse strategy.