PSX Daily Market Review - 20th July 2018

Trading volume at PSX floor increased by 89.26 million shares or 36.02% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 41,298.73, posted a day high of 41,896.08 and a day low of 41,298.73 during last trading session. The session suspended at 41,795.59 with net change of 897.69 and net trading volume of 178.97 million shares. Daily trading volume of KSE100 listed companies increased by 47.70 million shares or 36.33% on DoD basis.
Foreign Investors remained in net selling position of 14.67 million shares and net value of Foreign Inflow dropped by 7.14 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani Investors remained in net selling positions of 13.12 and 1.55 million shares respectively. While on the other side Local Individuals, Companies, Mutual Fund and Insurance Companies remained in net buying positions of 0.49, 2.39, 20.63 and 2.98 million shares respectively but Banks, NBFCs and Brokers remained in net selling positions of 5.35, 0.34 and 6.94 million shares.

Asian stocks choppy, sentiment shaken by sliding yuan
Most Asian stock markets retreated on Friday after China allowed its yuan currency to slide further, stoking concerns Beijing’s currency management could become the next flash point in a fierce trade conflict with the United States. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was unsteady in early trading, giving back morning gains to decline as much 0.1 percent at one point. It was last up 0.08 percent. South Korea's KOSPI .KS11 dropped 0.1 percent and Japan's Nikkei .N225 lost 0.55 percent. Hong Kong's Hang Seng .HSI slipped 0.5 percent and the Shanghai Composite Index .SSEC was down 0.15 percent.
PBC suggests steps to promote industry, corporate sector
Pakistan Business Council (PBC) has expressed concerns over deindustrialisation in the country as local industry lacked competitiveness given the high cost of power and gas. A delegation of the PBC led by Ehsan Malik and Bashir Ali Mohammad met Finance Minister, Dr Shamshad Akhtar here Thursday. The meeting was attended by secretaries of the Ministry of Finance, Ministry of Planning, Development and Reform, the Ministry of Energy and Chairperson Federal Board of Revenue and additional secretary of the Ministry of Commerce. The CEO, PBC made a comprehensive presentation of the issues facing corporate sector and shared proposals on strengthening the overall business environment and steps that could help boost different sectors of the economy.
SECP initiates stringent prosecutorial regime
In one of its first ever venture, the chairman Securities & Exchange Commission of Pakistan has chaired subsequent meetings of two corresponding divisions of SECP namely Securities Market Division and Prosecution and Legal Affairs Division in the SECP Headquarters wherein the newly formulated investigation and prosecutorial strategy was reviewed. As a strategy, the chairman has taken a firm stand for regulating the organization and has given directives to start initiating the surveillance and security activities with a prompt effect in order to curb capital market offences.
ESA imposed in PIA, abolishing workers’ rights
PIA management has enforced Pakistan Essential Services (Maintenance) Act (ESA) on all classes of employment in the airline abolishing various rights of the employees including going on strike whereas workers have rejected it. The application of this Act imposes a number of obligations on the employees of PIACL with regard to performance of their duties, breach of which is not only a misconduct under company’s rules but also an offence under this act. President of Peoples Unity of PIA employees Hadaytullah has warned that they would go on strike after taking permission from National Industrial Relation Commission (NIRC) against management decision of ESA.
Ministry denies massive closure of power loomsZ
Ministry of Textiles Thursday denied that all power looms in Faisalabad are closed. While responding to queries of senators during the Senate Standing Committee on Commerce and Textile meeting, ministry officials claimed that presently only six power loom units are closed and the rest are working as per previous practice. They insisted that the statistics show that production of yarn and cotton produced and exported has been consistent. The issue was raised by Senator Mian Muhammad Ateeq Sheikh and was referred to the committee due to its public importance. The mover while explaining the issue said that power loom units are being closed in Faisalabad and employees are suffering as a consequence.

The Benchmark KSE100 Index is about to complete 61.8% correction of its last bearish rally at 42,130 points and its capped by a descending trend line along with a horizontal supportive region therefore its recommended to book profits from previous buying and wait for a clear breakout of this region before initiating new trades. On intraday basis index is expected to remain bullish during current trading session and a weekly morning start is about to complete at a crucial edge where a weekly triple top would be formatted if index would not become able to close above 42,130 points. Its recommended to wait for weekly closing before initiating new trades.