PSX Daily Market Review - 21st Feb 2019

Trading volume at PSX floor increased by 37.7 million shares or 39.94% on DoD basis, whereas the benchmark KSE100 index opened at 39,943.99, posted a day high of 40,330.04 and a day low of 39,688.75 points during last trading session while session suspended at 40,279.38 with net change of 322.31 points and net trading volume of 89.4 million shares. Daily trading volume of KSE100 listed companies increased by 33.39 million shares or 59.6% on DoD basis.
Foreign Investors remained in net buying positions of 1.74 million shares and net value of Foreign Inflow increased by 0.75 million US Dollars. Categorically, Foreign Individual, Corporate and Overseas Pakistani Investors remained in net buying positions of 0.06, 0.76 and 0.91 million shares respectively. While on the other side Local Individuals, Companies and Insurance Companies remained in net selling positions of 4.81, 0.09 and 0.28 million shares but Banks, Mutual Funds and Brokers remained in net buying positions of 0.55, 3.52 and 0.98 million shares respectively.

Asia shares steady after Fed minutes, Aussie rallies
Asian shares held near 4-1/2-month highs on Thursday after U.S. Federal Reserve minutes affirmed it would be “patient” on interest rate rises and risk assets got a lift from hopes of further progress in U.S.-China trade talks. MSCI’s broadest index of Asia-Pacific shares outside Japan were steady in early trade, hovering just off their highest since early October. Australian shares gave up early gains, last trading 0.1 percent lower, but the Australian dollar rallied in the wake of strong full-time jobs figure. Japan’s Nikkei was down 0.3 percent after closing at a two-month high during the previous session.
Fiscal health deteriorating sharply, half-year data shows
Pakistan’s fiscal deficit crossed 2.7 per cent of gross domestic product (GDP) in the first half of this fiscal year – the highest in eight years – despite government’s claims to have put the house in order with greater fiscal discipline and austerity. Almost all the major fiscal indicators – both on expenditure and revenue side – showed deterioration in first half of the current fiscal year when compared to same period of last year. According to fiscal operations data released by the Ministry of Finance on Wednesday, the fiscal deficit in absolute terms amounted to Rs1.029 trillion in first half (July-December 2018) that was almost 30pc higher than same period of last year – the pre-election spending session of PML-N.
Imports from India continue unabated
As Pakistan’s exports to India face suspension after Pulwama attack on Feb 14, the trading and import of Indian goods, on the other hand, has so far been moving at normal pace. Some businessmen, however, want a “tit-for-tat action” from Pakistani government in view of up to 200 per cent duty imposed by India on import of Pakistani goods. Sources said that exports of cement, gypsum and dry dates from Wagah Border have come to a halt from Sunday as importers on the Indian side refuse to purchase goods following up to 200pc duty imposed by their government. But imports of cotton and PSF yarn, plastic molding compound (PMC) etc continue to arrive from India through Wagah Border.
Nepra allows Rs1.80 per unit hike
The National Electric Power Regulatory Authority (Nepra) on Wednesday continued to express concern over fuel mix management but allowed an increase of Rs1.80 per unit in consumer tariff for ex-Wapda distribution companies (Discos) for a month on account of fuel cost adjustment. The decision would generate Rs13.5 billion revenue to the Discos. This is despite the fact that Nepra’s case officers highlighted during a public hearing that prudent utilisation of fuel mix would have resulted in “reduction in total fuel cost by around Rs6.7bn i.e. 91 paisa per unit”.
MoU signed for 64MW grid
The National Industrial Parks Development and Management Company (NIP) and K-Electric on Wednesday signed an MoU to facilitate Bin Qasim Industrial Park’s (BQIP) for the ongoing Phase II development of the project. The MoU was signed by CEO KE Moonis Alvi and CEO NIP Rizwan Bhatti in the presence of Adviser to Prime Minister on Textile and Industry, Abdul Razzak Dawood. Under the MoU, KE will develop a 64MW grid and 132kV transmission line at BQIP, at an initial tentative cost of Rs1.8 billion. NIP will also seek approval from the federal government for funding support under Special Economic Zones Act 2012, says a press release.

The Benchmark KSE100 Index have formatted a bullish engulfing pattern on daily chart during last trading session and with completion of this formation daily momentum indicators have changed their direction towards bullish side because daily MAORSI and Stochastic have generated bullish crossovers. While on hourly chart index also have succeeded in closing above a resistant trend line which was previously trying to cap bullish sentiment therefore it’s expected that index would try to take a spike during current trading session towards 40,500 points and if it would succeed in penetration above that region on hourly basis then next target would be 40,860 points. While on flip side index would try to find supports at 40,000 and 39,580 points. If index would succeed in closing above 40,500 points till Friday then impact of previous evening shooting star would start losing its grip and bulls would try to dominate the market.