PSX Daily Market Review - 20th Dec. 2017

Trading volume at PSX floor increased by 58.51 million shares or 116.91% on DoD basis, whereas, the benchmark KSE100 Index opened at 38418.88, posted a day high of 38443.12 and a day low of 37768.25 during last trading session. The session suspended at 37919.42 with net change of -464.56 and net trading volume of 55.91 million shares. Daily trading volume of KSE100 listed companies increased by 30.5 million shares or 120.05% on DoD basis.
Foreign Investors remained in net buying position of 3.78 million shares and net value of Foreign Inflow inreased by 6.67 million shares. Categorically, Foreign Individual and Corporate Investors remained in net buying positions of 0.18 and 3.75 million shares but Overseas Pakistanis remained in net selling position of 0.15 million shares. While on the other side Locl Individuals, Mutual Funds and Brokers remained in net selling positions of 1.87, 4.5 and 5.6 million shares but Local Companies, Banks, and Insurance Companies remained in net buying positions of 6.12, 0.05 and 1.58 million shares respectively.

Asian shares fell on Wednesday, taking their cues from Wall Street with investor enthusiasm toward U.S. tax changes ebbing as the long-awaited reform bill wound its way through Congress, while higher U.S. Treasury yields underpinned the dollar. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.2 percent in early trading, while Japan's Nikkei stock index .N225 also edged down 0.2 percent. The Dow Jones Industrial Average .DJI shed 0.15 percent, the S&P 500 .SPX lost 0.32 percent, and the Nasdaq Composite .IXIC dropped 0.44 percent on Tuesday.
The federal government will present the budget for the fiscal year 2018-19 for approval from the National Assembly in May 2018, a notification issued by the Finance Division on Monday said. The notification says that the Finance Division will present all budget documents, schedules and summaries to the cabinet by April 2018 following which the finance minister will present the budget to the parliament. The timing of 2018-19 budget approval is crucial as NA's five-year tenure ends on May 31, 2018. According to the proposed timeline, the Budget Strategy Paper shall be presented to the cabinet for approval in February while the National Economic Council (NEC) meeting on the budget will be held in April.
Asian Development Bank (ADB) country director Xiaohong Yang on Tuesday assured Prime Minister Shahid Khaqan Abbasi that the bank will continue providing financial and technical assistance to the country, Radio Pakistan reported. The ADB country director assured future cooperation in all areas including, energy and gas sectors. According to the report, she appreciated the country's progress in the energy sector. She said the improvement in the power sector has not only brought relief to domestic consumers but also leading to growth in large-scale manufacturing.
The Pakistan Hosiery Manufacturers Association has rejected the government’s move of ‘eliminating Associations role’ in verification and disbursement of Duty Drawback under PM Package for exporters, expressing fear that a new channel of corruption is going to open. PHMA chairman Dr Khurram Anwar Khawaja, in a letter written to the Ministry of Textile Industry, said that the role of Associations must be restored in the DDT Order 2017-18 in view of their productive and contributory services, as they are the elected representatives of the exporters. It is to be noted that Ministry of Textile in its notification No. 1(42-A) TID/17-TR-II dated 12.12.2017 has omitted the clause mentioning Association’s role .
The Punjab Provincial Development Working Party has approved seven development schemes of various sectors with an estimated cost of Rs. 27891.92 million. These schemes were approved in the 38th meeting of PDWP of current fiscal year 2017-18, presided over by Chairman P&D Muhammad Jahanzeb Khan. Secretary P&D Iftikhar Ali Sahoo, all members of the Planning & Development Board, provincial secretaries concerned, Assistant Chief P&D Coordination-II Hafiz Muhammad Iqbal and other senior representatives of the relevant departments also attended the meeting.
Market is expected to remain volatile today therefore its recommended to stay cautious during current trading session.

The Benchmark KSE100 Index have closed below its major supportive region during last trading session and now it have supports at 37566 and 37087 from its expansion levels along with a crossover of supportive trendline of daily chart and a horizontal line. Its expected that index would bounceback this time after retesting supportive trend line of said channel for fourth time and would try to touch its resistant region before closing of this month which falls around 40000 points. Fore current trading session 37566 could be a better supportive region from where safe buying for an intraday basis and short term basis could be initiated.