PSX Daily Market Review - 20th Feb 2019

Trading volume at PSX floor dropped by 4.45 million shares or 4.50% on DoD basis, whereas the benchmark KSE100 index opened at 40,242.45, posted a day high of 40,320.58 and a day low of 39,941.97 points during last trading session while session suspended at 39,957.07 with net change of -262.40 points and net trading volume of 56.02 million shares. Daily trading volume of KSE100 listed companies dropped by 1.93 million shares or 3.33% on DoD basis.
Foreign Investors remained in net buying positions of 0.98 million shares and net value of Foreign Inflow increased by 1.70 million US Dollars. Categorically, Foreign Individuals, Foreign Corporate and Overseas Pakistani investors remained in net buying positions of 0.06, 0.32 and 0.60 million shares. While on the other side Local Individuals, Local Companies and Mutual Fund remained in net selling positions of 1.81, 3.02 and 6.33 million shares respectively but Banks, NBFCs, Brokers and Insurance Companies remained in net buying positions of 0.78, 0.42, 4.09 and 4.53 million shares.

Asia shares rally to four-and-a-half month peak on hopes of U.S.-China trade deal
Asian stocks advanced to 4-1/2-month highs on Wednesday as investors bet that Chinese and U.S. trade negotiators would be able to secure a deal to de-escalate their year-long tariff war. MSCI’s broadest index of Asia-Pacific shares outside Japan rose nearly 1.0 percent to reach its highest levels since Oct. 2. Hong Kong’s Hang Seng gained 1.1 percent to six-month highs, while Korea’s Kospi and Taiwan’s index recovered to levels last seen in early October. Japan’s Nikkei gained 0.75 percent to two-month highs.
Honda to close British car plant as Brexit looms LONDON
Honda will close its only British car plant in 2021 with the loss of up to 3,500 jobs, a major departure of Japanese investment announced just over a month before the United Kingdom is due to leave the European Union. The automaker, which builds more than a tenth of the 1.5 million cars made in Britain, said the move was not related to Brexit and it needed to focus activities in regions where it expects to sell most cars, after struggling in Europe.
FPCCI sees more joint ventures with Saudi investors
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday hailed business-to-business agreements with Saudi Arabia while stressing on the need to improve standards of Pakistani goods and services to avail maximum potential of the deals. At a media briefing held at the apex body’s capital office, FPCCI high-ups welcomed bilateral arrangements with the private sector of Saudi Arabia. “The most important part of these agreements is that the crown prince is directly supervising these business agreements,” said FPCCI President Engineer Daroo Khan Achakzai. “It is for the first time that the private sector has been given the opportunity to take the lead in devising business deals,” he noted.
Rs806m development projects approved
The Central Development Working Party (CDWP) on Tuesday approved four projects worth Rs806.2 million. It also referred another two projects amounting to Rs7404.6m to the Executive Committee of National Economic Council (Ecnec) for further approval. Chaired by Minister for Planning and Development Makhdoom Khusro Bakhtyar, the meeting discussed projects related to water resources, health, physical planning and housing sectors. The CDWP approved the feasibility study and detailed design of Burj Aziz Khan Dam project in Pishin Lora costing Rs67.41m.
Chinese firm rejects corruption charge in CPEC project
Communication Minister Murad Saeed’s brickbats alleging Rs70 billion corruption in a CPEC project — the Sukkur-Multan motorway — have ‘shocked’ the Chinese state-owned company that won the contract and undertook the project. “China State Construction Engineering Corporation Ltd [CSCEC] feels extremely shocked by the recent groundless allegations made publicly through the media against the Sukkur-Multan motorway project, undertaken by our company,” an official press release reads.

The Benchmark KSE100 have a supportive region ahead between 39,660 to 39,500 points from where index can start a bounce back and breakout of that region in downward direction would call for a serious downward rally which would push index for further 1000-1500 points, while index would face resistance at 40,360 and 40,500 points in case of reversal. It’s recommended to stay cautious and post strict stop loss on long positions. Technically, it’s expected that index would not succeed to penetrate below 39,500 points during current week and it have to bounce back for completion of its fourth wave.