PSX Daily Market Review - 21st Aug 2019

Trading volume at PSX floor increased by 40.06 million shares or 39.08% on DoD basis, whereas the benchmark KSE100 index opened at 29,562.42, posted a day high of 30,503.11 and a day low of 29,562.42 points during last trading session while session suspended at 30,419.22 points with net change of 856.8 points and net trading volume of 109.05 million shares. Daily trading volume of KSE100 listed companies increased by 32.72 million shares or 42.87% on DoD basis.
Foreign Investors remained in net selling positions of 15.88 million shares and net value of Foreign Inflow dropped by 1.27 million US Dollars. Categorically, Foreign Corporate Investors remained in net selling positions of 17.6 million shares but Overseas Pakistanis remained in net buying positions of 1.75 million shares. While on the other side Local Individuals, Companies, Banks, Mutual Funds and Insurance Companies remained in net long positions of 13.67, 0.68, 1.88, 1.4 and 0.08 million shares respectively but Brokers remained in net selling positions of 0.63 million shares.

U.S. regulators hand Wall Street a major win with stripped-down 'Volcker Rule'
U.S. banking regulators on Tuesday eased trading regulations for Wall Street banks, giving them one of their biggest wins under the Trump administration but drawing criticism from consumer activists who warned of potential risks to taxpayers. U.S. banking regulators on Tuesday eased trading regulations for Wall Street banks, giving them one of their biggest wins under the Trump administration but drawing criticism from consumer activists who warned of potential risks to taxpayers.
Three reviews to determine Pakistan’s place on FATF list
Three separate evaluations currently in progress will determine Pakistan’s possible exit from the grey list of the Financial Action Task Force (FATF) by the mid of October. A senior government official told Dawn that Asia-Pacific Group — the regional affiliate of the FATF — was currently conducting in Canberra (Australia) five-year mutual evaluation of Pakistan’s progress on upgrading its systems in all areas of financial and insurance services and sectors.
CAD contracts 73pc in July
The current account deficit (CAD) shrank by a massive 73 per cent in the first month of this fiscal year, reported the State Bank of Pakistan on Tuesday. The CAD plunged by 72.81pc to $579 million in July, as compared to $2.13 billion in same period of 2018-19. This was in line with the downward trend witnessed throughout 2018-19 when the deficit stood lower by 31pc to $13.58bn, from $19.8bn in FY18 – recording a decrease of $6.3bn. This must be a relief for the government which has been struggling to plug the deficit through borrowing from donor agencies, commercial banks and friendly countries. Primary contributor to the noticeable decline was the governmental measures aimed at curbing the imports.
Hub plant to meet power needs of millions of people: China
China has hoped that the successful commer­cial operations of a $2 billion 1,320 MW coal-fired power plant will meet electricity needs of the millions of people. Commenting on its successful operation, a spokesperson of the Chinese Foreign Minis­try Geng Shuang said here on Tuesday, “it is an important energy project under the China-Pakistan Economic Corridor, which can meet the electricity demand of millions of Pakistani households.” The project has been set up by the China Power Hub Generation Company (CPHGC) under the China-Pakistan Economic Corridor (CPEC) project. The spokesperson said, China and Pakistan are all-weather strategic partners. The China-Pakistan Economic Corridor is a landmark project for pragmatic cooperation between the two countries.
KE requests Nepra to transfer burden of Rs13.88b to consumers
K-Electric has requested National Electric Power Regulatory Authority (NEPRA) to transfer the burden of Rs 13.88 billion to Karachi-based consumers under fuel prices adjustment for 29 months. In a petition moved to NEPRA, K-Electric has demanded for monthly fuel adjustment for 29 months from December 2016 to April 2019 under fuel price adjustment. In a petition for monthly and quarterly variations for the period of June 2016 to April 2019 under multiyear Tariff 2017-2023, K-Electric has requested an increase in tariff for 16 months and decrease in tariff for 13 months for the KE consumers. Since the provisional adjustment has been granted to K-Electric by NEPRA till the month of November 2016, therefore for the remaining 29 months (December 2016 to June 2019) the company has requested fuel price adjustment.

The Benchmark KSE100 index have succeeded in engulfing previous bearish weekly candle and now it’s trying to format a morning star on weekly chart and it’s expected that if index would succeed in penetration above 30,800 points on weekly closing basis then a major shift in trend would be witnessed in coming days. But it’s recommended to practice caution as index have major resistant regions ahead at 30,800, 31,000 and 31,700 points and a serious pressure could be witnessed at these regions and if index would not succeed in closing above 31,000 points during this week then a sharp decline would be started which would lead index towards a new low. In case of any bearish pressure index would try to find supports at 30,200 and 29,700 points while sliding below 29,700 points would push index towards 27,600 points. It’s recommended to post trailing stop losses on long positions until index succeed in closing above 31,700 points.