PSX Daily Market Review - 19th Feb 2019

Trading volume at PSX floor increased by 5.84 million shares or 6.28% on DoD basis, whereas the benchmark KSE100 index opened at 40,605.13, posted a day high of 40,654.65 and a day low of 40,000.11 points during last trading session while session suspended at 40,219.47 with net change of -267.20 points and net trading volume of 57.94 million shares. Daily trading volume of KSE100 listed companies increased by 11.31 million shares or 24.24% on DoD basis.
Foreign Investors remained in net selling positions of 2.52 million shares but net value of Foreign Inflow increased by 1.91 million US Dollars. Categorically, Foreign Individuals and Foreign Corporate remained in net selling positions of 0.2 and 3.91 million shares but and Overseas Pakistani investors remained in net buying positions of 1.41 million shares. While on the other side Local Individuals, Banks, NBFCs and Insurance Companies remained in net buying positions of 9.78, 0.08, 1.20 and 0.29 million shares respectively but Local Companies, Mutual Fund and Brokers remained in net selling positions of 1.68, 4.94 and 1.02 million shares.

Asian shares near four-month high, buoyed by trade optimism
Asian shares hovered near four-month highs on Tuesday, supported by hopes that Sino-U.S. trade talks were making progress and expectations of policy stimulus from central banks. Investor confidence was bolstered by mild gains in European stocks as U.S. markets were shut on Monday for a public holiday. MSCI’s broadest index of Asia-Pacific shares outside Japan was a shade firmer, while Japan’s Nikkei was almost flat. Chinese shares were little changed, too, with the blue-chip index up 0.1 percent after surging in the previous session.
Pakistan, Saudi Arabia agree to enhance trade
Pakistan and Saudi Arabia on Monday agreed to enhance the volume of bilateral trade in next few years from existing $3.7 billion, which is well below than the existing potential between the two countries. Both the countries also agreed to explore the untapped potential areas for increasing the trade and investment opportunities. Pakistan has welcomed the Saudi Arabia’s investment in its power sector, which would help in reducing the cost of energy costs in the country.
CPPA seeks Rs1.938 per unit increase in electricity tariff
Transmission losses in supply of electricity to Discos have increased by 45.85 percent while use of furnace oil for electricity generation has massively jumped from November to January, resulting in the increased tariff for the end consumers. In percentage term, use of furnace oil increased by 29,852 percent from 5.75 GWs/h to 1722.25 GWs/h in January. Similarly, the transmission losses in supply of electricity to the Discos also increased by 45.85 percent from 3.01 percent in November 2018 to 4.39 in January 2019, said the data provided by Central Power Purchasing Agency (CPPA-G) to NEPRA.
Roadmap for $21bn Saudi investment finalised
Pakistan is expecting $21 billion worth of seven memorandums of understanding (MoUs) signed with Saudi Arabia to come to fruition in three phases over the next six years. The two sides have set up two major follow-up forums to ensure timely completion of feasibility studies and project implementation including the top level Saudi-Pakistan Joint Supreme Coordination Council (SPJSCC) and a Joint Working Group (JWG). The SPSCC will be led by Prime Minister Imran Khan and Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud while joint working group on energy would be led by Saudi Minister for Energy and Industry Khalid Al Falih and Petroleum Minister Ghulam Sarwar Khan.
Foreign investment down 17pc
The foreign direct investment (FDI) during July-Jan FY19 declined by over 17 per cent compared to same period last year, according to data released by the State Bank of Pakistan (SBP) on Monday. However, year-on-year inflows during January increased by 2.404pc reaching $132 million from the $128.9m received during the same month last year. The SBP data shows that the country received investments worth $1.451 billion during the first seven months of current fiscal year down 17.6pc from $1.761bn in the same period last year.

The Benchmark KSE100 Index have formatted a piercing line formation on hourly chart which is a very strong formation of bullish reversal and this formation would try to push index in upward direction while this sentiment would be supported by a morning star which have been formatted on thirty minutes chart before day end of last trading session. These both formations would try to push index in upward direction till 40,500 points and that level it would face initial resistance against this bullish pull back. It’s recommended to start buying on dip with strict stop loss of 39,800 points and profit target at 40,500 points breakout of either side will call for a further rally of 500-800 points in respective direction.