PSX Daily Market Review - 19th June 2018

Trading volume at PSX floor increased by 5.64 million shares or 5.04% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 43,535.38, posted a day high of 43,731.13 and a day low of 43,459.47 during last trading session. The session suspended at 43,680.68 with net change of 173.18 and net trading volume of 72.20 million shares. Daily trading volume of KSE100 listed companies dropped by 0.16 million shares or 0.22% on DoD basis.
Foreign Investors remained in net selling position of 2080 shares but net value of Foreign Inflow increased by 1.28 million US Dollars. Categorically, Foreign Individual and Corporate investors remained in net buying positions of 0.06 and 1.38 million shares but Overseas Pakistanis remained in net selling positions of 1.44 million shares. While on the other side Local Companies, Banks, Mutual Fund and Brokers remained in net buying positions of 4.72, 0.42, 5.22 and 1.01 million shares but Local Individuals, NBFCs and Insurance Companies remained in net selling positions of 5.39, 0.02, and 4.30 million shares respectively.

Asia stocks slide to four-month low as Trump threatens more China tariffs
Asian stocks skidded to a four-month low on Tuesday as U.S. President Donald Trump threatened new tariffs on Chinese goods in an escalating tit-for-tat trade war between the world’s two biggest economies that has rattled financial markets. Trump warned on Monday that Washington would impose a 10 percent tariff on $200 billion of Chinese goods after Beijing’s decision to raise tariffs on $50 billion in U.S. goods, which was in retaliation for U.S. tariffs announced on Friday. Trump said if China increases its tariffs again in response to the latest U.S. move, “we will meet that action by pursuing additional tariffs on another $200 billion of goods.” China said it will take “qualitative” and “quantitative” measures if the U.S. government publishes an additional list of tariffs on its products. The trade frictions have kept financial markets on edge, with investors and businesses increasingly worried that a full-blown trade battle could derail global growth.
Remittances to developing countries to exceed $6.5tr between 2015-2030: UN
The United Nations agency tasked with boosting rural development has estimated that remittances sent to developing countries could cross $6.5 trillion between 2015 and 2030, involving over one billion senders and receivers. The agency, International Fund for Agricultural Development (IFAD), said in 2017, 200 million migrants sent 481 billion dollars to remittances-reliant countries of which 466 billion dollars went to developing countries, helping sustain about 800 million people across the world. This amounts to more than three times the annual official development assistance that countries give in aid, the rural development agency said. Close to half of remittances will go to rural areas where poverty and hunger are the highest, according to IFAD.
PFC to participate in Apparel Sourcing and Furniture Show in US
Pakistan Furniture Council (PFC) will participate in Int'l Apparel Sourcing and Furniture Show at New York (USA) commencing from July 23 and display Pak handmade world class furniture products to attract foreign buyers and investors. PFC chief executive Mian Kashif Ashfaq said their participation in this show will help the furniture makers to explore more new markets and further strengthen bilateral trade ties with their counterparts in furniture industry," says a press release issued here on Monday. America, the world's largest economy, is also the largest market for Pakistan's export-oriented furniture industry. "American buyers prefer to buy value-priced and high quality finish case goods for dining and bedroom, leather and fabric upholstery, occasional and youth furniture," he added.
Govt to lay 310km pipeline to connect LNG terminal with Nawabshah
The government will lay 310 km pipeline to connect the proposed Bahria Foundation LNG terminal at Sonmiani Balochistan with Nawabshah. A summary moved to the ECC by the petroleum division said that Bahria Foundation was planning a LNG re-gasification terminal at Sonmiani and had requested Interstate Gas Systems (Pvt) Limited (ISGS) to construct pipeline connecting the LNG Terminal at Sonmiani to Nawabshah capable of transporting 700 to 1200 MMCFD high pressure Re-gasified Liquefied Natural Gas, said the official documents available with The Nation. A summary in this regard was approved in the last ECC meeting of the previous government of PML (N) which will enable ISGS to execute the project.
Pakistan can overcome monetary crisis: Experts
Building sound economic fundamentals is the best way to allay a currency crisis in Pakistan, economic experts said here on Monday. Global Times quoting some Chinese experts said Pakistan economy has potential to overcome its monetary crisis. State Bank of Pakistan recently devalued the Pakistani rupee for the third time in six months, stoking concerns that the country may have to go to the IMF for a bailout. Some experts expect the rupee to fall further in the coming months given Pakistan's dwindling foreign exchange reserves. The country's reserves dropped to $10.79 billion on May 11, an alarming level that is estimated to be insufficient to cover three months of trade deficit. Although Pakistan's economy is on an upswing, with growth of 5.6 percent expected for 2018, the government has been blamed for not taking enough steps to curb imports and increase exports.

The Benchmark KSE100 Index is capped by a horizontal resistant region along with a descending trend line on daily chart. Daily Momentum indicators are in bearish mode and those are indicating an under pressure sentiment, while hourly momentum is just trying to add further pressure on index by creating a fresh bearish crossover on hourly Stochastic and MAORSI. These indicators would change index sentiment from under pressure to downside prevails until index would not become able to recover and close above 44,116 points on daily chart. Index also have completed its 50% bearish correction on hourly chart and if bearish sentiment would prolong then index would find supportive regions around 42,980 points. Its recommended to initiate selling on strength with strict stop loss for current trading session.