PSX Daily Market Review - 20th June 2017

Trading volume at PSX floor increased by 40.39 million shares or 31.10%, DoD basis. Whereas, KSE100 Index opened at 46914.07, posted a day high of 47083.26 and a day low of 46312.95 during last trading session. The session suspended at 46593.34 with a net change of -265.22 points and a net trading volume of 74.83 million shares. Daily trading volume of KSE100 listed companies increased by 16.56 million shares or 28.41%, DoD basis.
Foreign Investors remained in a net selling position of 8.15 million shares and net value of Foreign Inflow dropped by 4.38 million US Dollars. Categorically, Foreign Individual, Corporate and Overseas Pakistani investors remained in net selling positions of 0.35, 7.55 and 0.26 million shares respectively.On the other side Local Individuals, Companies, Banks and NBFCs remained in net buying positions of 5.09, 10.92, 0.98 and 4.93 million shares but Mutual Funds and Brokers remained in net selling positions of 2.71 and 12.78 million shares.

Japanese Nikkei rose more than 1 percent to a near two-year high on Tuesday, encouraged by rebound in U.S. hi-tech shares as investors bet on solid growth in the economy and corporate profits globally. MSCI broadest index of Asia-Pacific shares outside Japan held firm near a two-year high struck last week, but was little changed on the day, with gains in high-tech firms offset by a decline in Australian shares. A big focus for Asia is whether index provider MSCI will later in the global day open up its Emerging Markets Index to Chinese mainland shares which have restricted access for foreign investors. Many investors expect the so-called A shares that make up the majority of Chinese stock market to likely be included after being rejected on three previous occasions. The blue-chip CSI300 index of mainland stocks was down 0.2 percent. Wall Street S&P 500 and the Dow industrial average hit record highs as technology shares bounced back after some sudden falls earlier this month. MSCI Pakistan Standard (Large and Middle Capp) droppped by 0.10% while MSCI Pakistan IMI Index (Small, Middle and Large Cap) dropped by 0.72% on DoD basis during last trading session.
The government may be heading towards a series of liquidity damages and swelling capacity payments as it works towards ending power cuts by the end of the year. Official documents seen by Dawn suggest that even though the government has lined up imported Liquefied Natural Gas through independent bidding, it is having difficulties in the off-take of these quantities due to infrastructure bottlenecks. On the other hand, the country’s power generation capacity is expected to outperform demand by the end of October for the first time in over a decade.
The Securities and Exchange Commission of Pakistan (SECP) has notified the draft Investor Education and Awareness Fund Rules, 2017, and the Unclaimed Shares, Modaraba Certificates, Dividend and Other Instruments Regulations, 2017, to obtain public opinion. These rules and regulations have also been placed on the SECP website.
National Transmission and Dispatch Company Ltd (NTDC) connected 1200MW RLNG Balloki Power Plant with national grid on Monday. The power plant has been connected through 500kV transmission line Balloki–Shaikhupura and 500kV transmission line Coal Fired Power Plant Sahiwal–Balloki, as an interim arrangement for back feed of Balloki power house and is energised today. Meanwhile, the NTDC spokesman said that 9 towers of 500 kV Guddu-DG Khan transmission line have been collapsed due to high intensity wind storm and torrential rains in various parts of Rajanpur. However, power supply was restored to affected areas through alternate sources.
The Senate defence committee on Monday constituted a sub-committee to investigate allegations that the armed forces have forcibly occupied lands in Quetta for their projects. Committee Chairman Senator Mushahid Hussain Sayed after listening to presentations by officials of the defence ministry and representatives of affected locals set up the three-member sub-committee, which would be led by Senator Abdul Qayyum, a retired general. Other members include PPP secretary general Senator Farhatullah Babar and Senator Hidayatullah.

Today ATRL, ENGRO and TRG may lead the market in positive direction.

The Benchmark KSE100 Index penetrated its bullish trend channel in bearish direction while expanding its previous correction and is caged in a descending triangle on daily chart. Breakout on either side of this triangle will push index for a new trend. As of now, the supportive regions are at around 48550 and 46257 and these levels could try to push index upward as they fall on 61.8% expansion level and a horizontal supportive region. If the index closes below these level then the next targets would be 45200 and 44500 at 100% expansion levels of its latest bearish corrections. Trading with strict stop loss of 46257 is recommended and after breakout of 46257 selling on strength would be preferred.