PSX Daily Market Review - 21st Dec. 2017

Trading volume at PSX floor increased by 21.1 million shares or 19.43% on DoD basis, whereas, the benchmark KSE100 Index opened at 37963.09, posted a day high of 38323.55 and a day low of 37842.52 during last trading session. The session suspended at 38208.06 with net change of 288.64 and net trading volume of 74.98 million shares. Daily trading volume of KSE100 listed companies increased by 19.07 million shares or 34.11% on DoD basis.
Foreign Investors remained in net selling position of 5.05 million shares and net value of Foreign Inflow dropped by 2.46 million US Dollars. Categorically, Foreign Individual, Corporate and Overseas Pakistani Investors remained in net selling positions of 0.15, 1.93 and 2.97 million shares respectively. While on the other side Local Individuals, Banks and Mutual Funds remained in net buying positions of 2.8, 0.62 and 3.07 million shares but Local Companies, Brokers and Insurance Companies remained in net selling positions of 0.14, 0.95 and 0.23 million shares respectively.

Asian markets offered a muted reaction on Thursday to the passage of U.S. tax cuts as benefits to company bottom lines were already baked into stock prices, while bonds were spooked by the blowout in government debt needed to fund the giveaways. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipped 0.1 percent in thin trade, while Australian stocks lost 0.3 percent. Japan's Nikkei .N225 eased 0.3 percent, though a softening yen should provide some support to exporters. In U.S. President Donald Trump’s first major policy win, Republicans steamrolled opposition from Democrats to pass a bill that slashes taxes for corporations and the wealthy while giving mixed, temporary relief to middle-class Americans.
The three-day mega event of 13th Build Asia Exhibition, successfully concluded in Karachi on Wednesday, as it facilitated the signing of agreements worth 250 million dollars between numerous local and foreign companies participating in this mega event. The event, held at the Karachi Expo Center from December 18 to 20, is the largest exhibition of construction, real-estate and housing industry, held annually by Ecommerce Gateway Pakistan, with the support of ‘Constructors Association of Pakistan’ (CAP) and ‘All Karachi Marble Industries Association’ (AKMIA), as it focuses on the immense potential of this robust sector. On the third day of the event, a large number of visitors and stakeholders of this industry participated enthusiastically. The event also featured a wide array of highly informative conferences, to provide a networking platform for engineers, contractors, builders, consultants, government officials, bankers, policy makers, stakeholders, other practitioners & professionals of this industry. Build Asia has also incorporated insightful forums like; ‘CPEC Construction Conference’, ‘Property Asia’, ‘StoneFair Asia’ & ‘Furniture Asia’.
The World Bank has approved a loan of $825 million to improve the national power transmission system in Pakistan and enhance health and education service delivery by strengthening financing management and procurement systems. The $425 million National Transmission Modernization Project-I (NTMP-I) will modernize the national transmission system to enable new power generation to reach consumers by upgrading, expanding and rehabilitating selected 500kV and 220kV substations and transmission lines. The government had decided to modernise the national power transmission to provide an immediate relief to the overall national transmission and dispatch system, which is under stress due to inadequate transformation capacity. Pakistan had sought financing from the World Bank for the modernisation of power sector. The first phase will involve upgradation and extensions to existing substations, modification to transmissions towers and lines, and the construction of new substation sites across the country.
Hearing multiple petitions filed by political leaders who had been disqualified by the Election Commission of Pakistan (ECP) for disobeying directions of their respective political parties, the Supreme Court upheld the disqualification of Pakistan Tehreek-i-Insaf’s (PTI) former Abbottabad president for fielding himself as an independent candidate after his party refused to allot him a ticket to contest the local government elections.
The Pakistan Peoples Party (PPP) has urged the Supreme Court to initiate contempt proceedings against former prime minister Nawaz Sharif for passing rude remarks about the recent decisions of the apex court. “Nawaz Sharif, while expressing reservations over the Supreme Court verdict in the Imran Khan case, used harsh words for the judiciary by saying that Sikh monarchy — a reference to an era of oppression in Punjab history — won’t be tolerated,” PPP leader Qamar Zaman Kaira said at a press conference on Wednesday.
Market is expected to remain volatile today therefore its recommended to stay cautious during current trading session.

The Benchmark KSE100 Index have bounced back from its major supportive region during last trading session and as of right now it have supports at 37930 and 37566 from its expansion levels along with a crossover of supportive trendline of daily chart and a horizontal line. Its expected that index would continue its bullish momentum this time after retesting supportive trend line of said channel for fourth time and would try to touch its resistant region before closing of this month which falls around 40000 points. Fore current trading session Index have resistant regions around 38430 and 38900 where index could face resistances.