PSX Daily Market Review - 1st Jan 2019

Trading volume at PSX floor increased by 51.62 million shares or 29.59% on DOD basis whereas the Benchmark KSE100 index opened at 37,050.00, posted a day high of 37,206.17 and day low of 36,802.40 during last trading session while session suspended at 37,066.67 points with net change of -100.35 points and net trading volume of 164.22 million shares. Daily trading volume of KSE100 listed companies increased by 30.82 million shares or 23.10% on DOD basis.
Foreign Investors remained in net selling positions of 0.51 million shares and net value of Foreign Inflow dropped by 0.33 million US Dollars. Categorically, Foreign Individuals and Foreign Corporate remained in net buying positions of 0.02 and 0.64 million shares but Overseas Pakistanis investors remained in net selling positions of 1.17 million shares. While on the other side Local Individuals, Local Companies, Banks and Mutual Fund remained in net buying positions of 32.99, 9.05, 21.17 and 9.22 million shares respectively but NBFCs, Brokers and Insurance Companies remained in net selling positions of 0.39, 70.37 and 2.57 million shares.

Wall Street rises, limps across the finish line of a turbulent year
Wall Street advanced in low-volume trading on Monday as revelers gathered to ring in 2019, marking the end of the worst year for U.S. stocks since 2008, the height of the financial crisis. Wall Street entered correction territory in late January and was challenged for much of 2018 by tariff jitters, rising interest rates, and fears of diminishing corporate profits.
Pakistan, Iran ready to hold negotiations
Pakistan and Iran are ready to hold negotiations on renewal of agreement for 100MW electricity import to Balochistan as Tehran has offered the supply of more electricity. Iran is ready to provide as much as electricity Pakistan needs but we have some constraints which stop us from making the deal, official source told The Nation here Monday. The issue of power import from Iran was discussed here in a meeting between Federal Minister for Power, Omar Ayub Khan, and the Iranian Ambassador Mr. Mehdi Honardoost, who called on him in his office.
Cement dispatches likely to decrease
The cement dispatches for the month of Dec 2018 are expected to slightly decrease by 2 percent to 3.67 million tons from 3.73 million tons in the same month last year. Analyzing forecasted dispatches by company, experts anticipate Attock Cement (ACPL) could potentially outshine owing to stellar growth in exports. They are expecting the company’s total dispatches to increase by 44 percent YoY with 169 percent YoY growth in exports during the month. D.G Khan Cement (DGKC) is expected to follow with total dispatches growth of 25 percent YoY. Again, exports are anticipated to play a pivotal role, likely to rise 120 percent YoY. Both ACPL and DGKC have recently added new plants in the south, helping these companies in boosting their export sales.
LCCI for patchwork of damaged roads
The Lahore Chamber of Commerce & Industry has urged Chief Minister of Punjab Sardar Usman Buzdar to take notice of the deteriorating conditions of the various city roads and pass on an immediate order to the concerned authorities to complete patchwork on war footing. In a statement issues here on Monday, the LCCI Acting President Khawaja Shahzad Nasir and Vice President Faheem-ur-Rehman Saigal said that Lahore is second largest city of the country and a hub of trade and industrial activities but its most of the roads are showing a scene of undeveloped village. They said that potholes and craters on various busy roads of Lahore City have made travel a huge torment.
660MW CPHGC power plant connected to national grid
The China Power Hub Generation Company (CPHGC) has successfully synchronised one of its two 660MW coal-fired power plants with the national grid, the company announced on Monday. The synchronisation of the first unit was achieved ahead of schedule and was realised within the agreed technical parameters, said the company release. After the commencement of commercial operations at CPHGC, the project will add 9 billion kWh of electricity of the national grid every year meeting electricity needs of 4 million households in the country.

The Benchmark KSE100 Index is on its way to complete fifth wave of its bearish Elliot wave on weekly chart and for that purpose it’s heading towards 36,090 points but before that region it may face strong supports at 36,700 and 36,260 points. Daily and weekly momentum indicators are in still bearish mode but hourly momentum indicators are trying to generate a pull back on intraday basis and if these would succeed in starting a reversal on intraday basis then index would face strong resistances at 37,580 and 37,730 points. It’s recommended to stay side line until index set a clear direction either in bearish or bullish side below 36,500 or above 37,700 points. A crossover of a horizontal support and a supportive trend line is taking place 37,690 points today which would try to react as a strong support as well and for initiating long positions its recommended to post stop loss at that region on intraday basis.