PSX Daily Market Review - 21st Aug 2017

Trading volume at PSX floor increased by 20.87 million shares or 12.48%, DoD basis, whereas, the benchmark KSE100 Index opened at 43133.88, posted a day high of 43187.09 and day low of 42347.19 during the last trading session. The session suspended at 43078.38 with a net change of -57.68 points and net trading volume of 88.14 million shares. Daily trading volume of KSE100 listed companies increased by 10.55 million shares or 13.59%, DoD basis.
Foreign Investors remained in a net selling position of 1.43 million shares but the net value of Foreign Inflow increased by 1.8 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani Investors remained in net selling positions of 0.81 and 0.62 million shares, respectively. While on the other side, Local Individuals, Companies, Banks, NBFCs and Brokers remained in net buying positions of 2.78, 4.04, 2.63, 0.7 and 0.72 million shares, respectively. Mutual Funds remained in a net selling position of 10.87 million shares.

Asian shares were tentative in early Monday trade as investors remained unconvinced about U.S. President Donald Trumps ability to fulfill his economic agenda, even as the departure of his controversial policy strategist raised hopes of some progress. MSCIs broadest index of Asia-Pacific shares outside Japan was down 0.07 percent while Japans Nikkei was off 0.4 percent. S&P Mini futures were flat at 2,427, not far from its one-month low of 2,419.5 touched on Friday. Wall Street shares got only a short-lived boost on Friday after Trump fired White House chief strategist Steve Bannon.
Pakistan and Indonesia have agreed on concession for 20 different items during bilateral negotiation under Preferential Trade Agreement (PTA). Both sides discussed 20 tariff lines and Indonesia agreed to give concession on major exports from Pakistan including rice, textile, ethanol, kinnow and mangoes during renegotiation on PTA, senior official of Ministry of Commerce told APP here on Sunday. Concession on 20 tariff lines was major success of Pakistan and now Pakistani kinnow export to Indonesia will increase from 18 to 35 million tons and mangoes exports will increase to 10 million tons in a year, he said. The official said that before PTA, Indonesia granted only two months for export of Pakistans kinnows and mangoes but now after renegotiation, Pakistan can export these fruits to Indonesia for the whole year and any time-limit was removed.
Federally Administered Tribal Areas (FATA) has unique flora and fauna, with highly enriched minerals including coal, oil and marble reserves. "We found good quality of marble with several new kinds, few of them explored while few still unexplored", said Pakistan Museum of Natural History Director General Dr Muhammad Rafique. He informed that they had collected samples from every agency of FATA, but there was need to work more extensively on the area to find out more about it, he told APP.–APP
Keeping in view the performance of prevision year, the industrial sector of the country is targeted to grow by 7.3 percent during the current fiscal year (2017-18). The government has targeted manufacturing sector to grow by 6.4 percent and large sector manufacturing industries (LSMI) to show positive growth rate of 6.3 percent, according to official sources. The small scale and household manufacturing would grow 8.2 percent, construction 12.1 percent and electricity generation and gas distribution by 12.5 percent while mining and quarrying sector is projected to grow by 3.5 percent.
Prime Minister Shahid Khaqan Abbasi on Thursday assured the exporters of fullest support from the government for boosting the exports. The Prime Minister reiterated that govt was committed to facilitate the business community for which all the proposals and suggestions would be appreciated. The PM was talking to a delegation comprising of leading exporters of the country, which called on him at the PMs Chamber in the National Assembly. Minister for Commerce Prevaiz Malik, Miftah Ismail, Special Assistant to the PM on Economic Affairs were also present during the meeting.

Today DGKC, GATM, MLCF and TRG may lead the market today in the positive direction.

The Benchmark KSE100 Index bounced back from a horizontal supportive region and closed with a hammer on daily chart, which is a sign of a bullish reversal. However, this pattern may find strength if the index closes above 43800 today, as that would confirm a bullish morning star on the daily chart. Major trend shift would be confirmed once the index closes above 44560. Therefore, its recommended to sell on strength until the mentioned level is breached because if the index fails to sustain 43000, then the next supportive levels fall at 42235 and 41500 regions.

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