PSX Daily Market Review - 20th June 2018

Trading volume at PSX floor increased by 5.73 million shares or 4.87% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 43,699.37, posted a day high of 43,824.99 and a day low of 43,515.27 during last trading session. The session suspended at 43,682.84 with net change of 2.16 and net trading volume of 63.74 million shares. Daily trading volume of KSE100 listed companies dropped by 8.46 million shares or 11.72% on DoD basis.
Foreign Investors remained in net buying position of 1.91 million shares but net value of Foreign Inflow dropped by 0.45 million US Dollars. Categorically, Foreign Individual remained in net selling positions of 0.06 million shares but Foreign Corporate and Overseas Pakistanis investors remained in net buying positions of 1.27 and 0.69 million shares. While on the other side Local Companies, Banks, Mutual Fund and Insurance Companies remained in net selling positions of 22.37, 5.04, 4.18 and 1.69 million shares but Local Individuals, NBFCs and Brokers remained in net buying positions of 5.72, 0.21, and 25.57 million shares respectively.

Stocks recover from earlier rout but trade war fears seen capping gains
Stocks in Asia rebounded from recent losses on Wednesday as investors sought bargains, a day after the specter of a U.S.-China trade war rattled global markets, but significant uncertainty around the trade outlook is capping gains. Japan's Nikkei .N225 was 0.1 percent higher after earlier falling into negative territory. South Korea's KOSPI .KS11 rose 1 percent. In China, the Shanghai Composite Index .SSEC was down 0.3 percent in early trade, a day after falling 3.8 percent. Wednesday's fall came despite 30 listed firms announcing share purchase plans by major shareholders, and state media expressing confidence in the country's stock markets. China's blue-chip CSI300 index .CSI300 was 0.2 percent lower after briefly flirting with gains, and the Shenzhen Composite Index .SZSC was up 0.1 percent.
242.25MW power added to national grid
The second unit of AJK-based Neelum Jhelum Hydropower Project started generating power to its maximum capacity of 242.25 megawatts on Tuesday. As per contractual requirements, the unit will be initially on a 3-day and thereafter 30-day reliability period and will continuously generate power to its maximum capacity for the national grid , sources said. Earlier, the Unit No 4 was put into operation during April and it injected more than 1.3 million units of electricity during test run. However, during the test, some minor technical issues relating to the unit were emerged which have now been rectified, they added. It is important to note that contrary to the media reports, the generating units of Neelum Jhelum Hydropower Project are being completed according to the timelines and are passing through the required tests in accordance with the contractual obligations. The project has a cumulative generation capacity of 969 MW through its four units, with each of them having 242.25 MW capacity.
Nepra allows K-Electric to use RLNG as alternative fuel
NEPRA has Tuesday allowed K-Electric to use Re-Liquefied Natural Gas (RLNG) as an alternative fuel to overcome the supply demand gap and to provide relief to people of Karachi. In order to bridge the demand and supply gap and to provide immediate relief to end-consumers, the authority has decided to allow immediate application of RLNG as alternative fuel in the instant case subject to an order of refund for the protection of the consumers, while the proceedings are pending before the authority, said a notification issued by NEPRA. K-Electric vide letter dated April 30, 2018, requested the authority to allow RLNG as an alternate fuel for its existing power plants. According to KE, the request has been filed in purview of the Cabinet Committee on Energy's (CCoE) directives dated April 23, 2018, wherein Sui Southern Gas Company (SSGC) was directed to increase gas supply to KE under an arrangement of 130 MMCFD of natural gas and 60 MMCFD of RLNG to meet KE's minimum gas requirement of 190 MMCM).
CPEC to help PR improve performance: PM
Prime Minister Nasir-ul-Mulk Tuesday said that with CPEC, there is a huge potential and scope for Pakistan Railways to further improve its performance and increase its share both in passenger as well as freight transportation sector by offer quality services to its customers. During a briefing about the performance of Pakistan Railway, the prime minister directed that a comprehensive plan would be worked out to overcome the existing challenges for the consideration of the incoming elected government. The briefing was attended by Minister for Railways Roshan Khursheed Bharucha, Secretary to the PM Suhail Aamir, Secretary Railways Muhammad Javed Anwar and senior officers of Ministry of Railways. The prime minister was informed that as a result of right mix in service the passenger share in Railways has increased from 13percent in 2013 to 31 percent in 2017.
Businessmen reiterate demand for KBD construction
As water crisis has become a serious threat to the country, the business community has appealed to the Supreme Court of Pakistan to look into the matter and try to create consensus among the provinces on this important. Pakistan Industrial and Traders Associations Front Chairman Irfan Iqbal Sheikh observed that it is the most thoroughly studied project by world's top experts, reviewed by noted international panels of professionals and thoroughly appraised by the World Bank.

The Benchmark KSE100 Index is capped by a descending trend line along with a horizontal resistant region at 44,116, daily Stochastic is trying to generate a bullish crossover but MAORSI is not ready for any kind of bullish move while hourly momentum indicators are trying to create a reversal pattern in bearish direction. Besides all these momentum indicators index is not becoming able to close above its 50% correction of last bearish rally on hourly chart. It’s expected that index would remain range bound until a clear breakout would happen on either side. Index need to close above 44,470 or below 42,980 to get rid of this range bound situation. As of right now it’s recommended to initiate selling on strength with strict stop loss of 44,120 or 44,470 because breakout of these both regions would change market sentiment for short term basis.