PSX Daily Market Review - 21st Jan 2019

Trading volume at PSX floor increased by 50.52 million shares or 48.35% on DoD basis, whereas the benchmark KSE100 index opened at 39,243.22, posted a day high of 39,390.77 and a day low of 38,091.52 points during last trading session while session suspended at 39,306.50 with net change of 62.61 points and net trading volume of 121.61 million shares. Daily trading volume of KSE100 listed companies increased by 42.78 million shares or 54.26% on DoD basis.
Foreign Investors remained in net selling positions of 4.28 million shares and net value of Foreign Inflow dropped by 1.66 million shares. Categorically, Foreign Individuals remained in net buying positions of 0.1 million shares but Foreign Corporate and Overseas Pakistanis remained in net selling positions of 3.49 and 0.89 million shares respectively. While on the other side Local Individuals, Banks, Mutual Funds and Insurance companies remained in net selling positions of 1.08, 1.57, 1.53 and 5.51 million shares respectively but Local Companies, NBFCs and Brokers remained in net buying positions of 3.67, 0.16 and 7.9 million shares respectively.

Asia stocks calm as China slows, awaits Brexit news
Asian markets kept their nerve on Monday as data showed the Chinese economy slowed at the end of last year, underlining the urgent need for more stimulus as Beijing wrestles with the United States over trade. Investors are also waiting to hear British Prime Minister Theresa May’s ‘Plan B’ for Brexit which is due to be presented to parliament later on Monday. The world’s second-largest economy grew 6.4 percent in the fourth quarter from a year earlier, as had been expected and matching levels last seen in early 2009 during the global financial crisis. Yet there were some bright spots with industrial output rising a surprisingly strong 5.7 percent, while retail sales rose 8.2 percent in December, from a year earlier.
Ministry claims govt’s better economic performance
Ministry of Finance Spokesman Doctor Khaqqan Najeeb has said that during the last six months of the incumbent government, the economic numbers have been showing better performance and right direction of the government. Khaqan Najeeb said remittances growth has increased by 10 percent during the first six months while foreign Investment in December 2018 faired well by 17% compared to December 2017. He said trade deficit in six months shrank by five percent and exports grew by two percent, while imports also dip by two percent. He said due to tireless efforts of the present government, the Current Account deficit in first six months dropped by 4.4 percent as compared to the same period last year and pressure on external account was also reducing. “Private sector borrowing reached Rs.496 billion in first six months of current fiscal year compared to Rs 232 billion of same period last year showing more than double growth”, he added.
Strategic Business Plan 2019-22 to improve PIA performance
National Carrier - Pakistan International Airline (PIA) is in process of finalizing its Strategic Business Plan 2019-22 which defines objectives and strategies to improve performance. The Plan is expected to be submitted to the Federal governmentin March or April this year. Sources at Aviation Division while enumerating steps taken to improve its performance on Sunday said several profitable new routes like Sialkot-Sharjah, Lahore-Muscat, Islamabad-Doha and Lahore-Bangkok-Kualalampur have been added. These routes are going very strong and are economically viable. The sources said more new routes have been planned which will commence soon. These include Sialkot-Paris-Barcelona, Peshawar-Sharjah, Peshawar-Al- Ain and Multan-Sharjah.
ADB to fund uplift schemes in Sargodha
The Asian Development Bank (ADB) would fund various development and civic schemes including sewerage system, clean drinking water, disposal of garbage in the next five years. This was revealed by Deputy Commissioner Salwat Saeed while talking to the media here on Sunday. She said that an ADB representative would visit Sargodha by the end of this month to finalise proposed schemes. The ADB has completed initial planning for the schemes and also submitted its recommendations to the district government, she added. The ADB has also shown interest in initiating different schemes of public parks and green-belts around the city areas, she said.
PSO in dire straits as launch of Rs200bn bond delayed
The delay in the launch of Rs200 billion Islamic bond to rescue the troubled energy sector has put the largest state-owned firm — Pakistan State Oil (PSO) — in dire straits with its receivables going beyond a record Rs364bn. A senior petroleum ministry official said receivables from the power sector alone had touched Rs265bn as of Jan 18 because of primary circular debt. In addition, a second tier circular debt worth Rs51bn has built up against the Sui Northern Gas Pipelines Limited (SNGPL) due to non-payment of LNG supplies, affecting the entire gas sector. Moreover, about Rs48bn are payable to the PSO by the Pakistan International Airlines (PIA) and the federal government on account of price differential claims and exchange rate loss.

The Benchmark KSE100 Index is being capped by its correction of last bearish rally and have tried to resist against its bullish momentum which was created during second last week on formation of a morning star on daily chart but that momentum is losing its strength now as index have generated a doji on weekly chart after getting resistance from its 50% correction of last bearish rally. Daily and Intraday momentum indicators already have changed their direction to bearish side and it’s expected that index would try to change its direction to bearish side after a spike during current trading session. As of now index have supportive regions standing at 39,000 and 38,600 points while resistant regions are standing at 390,660 and 40,000 points. It’s recommended to stay cautious on buying side and trade with strict stop loss.