PSX Daily Market Review - 22nd Dec. 2017

Trading volume at PSX floor increased by 49.98 million shares or 38.55% on DoD basis, whereas, the benchmark KSE100 Index opened at 38216.76, posted a day high of 38793.99 and a day low of 338014.84 during last trading session. The session suspended at 38715.77 with net change of 507.71 and net trading volume of 81.3 million shares. Daily trading volume of KSE100 listed companies increased by 6.31 million shares or 8.42% on DoD basis.
Foreign Investors remained in net selling of 4.06 million shares and net value of Foreign Inflow dropped by 3.23 million US Dollars. Categorically, Foreign Individual and Corporate Investors remained in net selling positions of 1.22 and 3.81 million shares but Overseas Pakistanis remained in net buying of 0.97 million shares. While on the other side Local Individuals, Companies, NBFCs and Insurance Companies remained in net buying of 27.21, 0.5, 0.13 and 0.18 million shares respectively, but Banks, Mutual Funds and Brokers remained in selling of 3.36, 0.75 and 20.29 million shares respectively.

Asian stocks edged up on Friday on new data pointing to steady growth in the U.S. economy, while the euro slipped after a vote in Catalonia favored separatists wanting to break away from Spain. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was 0.25 percent higher. The region’s equities took cues from Wall Street, after all three major indexes posted gains overnight on strength in bank and energy stocks and news the U.S. economy grew in the third quarter at its fastest pace in more than two years. [.N] Supporting U.S. stocks this week, and by extension global equities, was the passage of $1.5 trillion tax-cutting bill through Congress.
A leading Chinese bike maker is gearing up to launch an 800cc car next year, a company official confirmed on Thursday. Its launch will be followed by the end of the 30-year journey of iconic 800cc Suzuki Mehran in 2019. United Auto Industries is venturing into car and pickup manufacturing, United Motors General Manager Muhammad Afzal told Dawn from Lahore. He said the company will use Chinese technology and market its vehicles under the brand name of United. “The local assembly of these vehicles will begin in the first half of 2018,” he said.
Ahead of approaching elections, the government has decided that the gas utility companies — Sui Southern Gas Company Ltd (SSGCL) and Sui Northern Gas Pipelines Ltd (SNGPL) — would bear the cost of provision of gas to new localities within the 5km radius of gas fields. A decision to this effect was taken at a meeting of the Council of Common Inte­rests (CCI) held on Nov 24, according to minutes of the meeting conveyed to the gas companies. In view of sparse population density in Balochistan, the CCI also ordered that “if no village is located within the 5km radius, the provision of gas to nearest tehsil or district headquarters would be ensured”.
Exports of value-added textile products posted a growth of over 12 per cent year-on-year to $3.46 billion in the first five months of 2017-18, the Pakistan Bureau of Statistics said on Thursday. This propelled overall growth in exports during the period under review mainly because of a cash subsidy offered to exporters under the prime minister’s incentives package and the payment of sales tax refunds. Total exports of the textile sector reached $5.51bn in July-November against $5.11bn a year ago, reflecting an increase of 7.66pc. The share of textile and clothing sector in overall export proceeds stood at 61pc during the period under review.
Trade and industry representatives have urged the government to appoint a permanent finance minister immediately to resolve their outstanding issues. Talking to journalists at a luncheon on Thursday, they said a convention of businessmen will be called in Lahore early next year if the government does not fulfil their demand. Under the prevailing situation, it is necessary that a permanent or at least caretaker finance minister is appointed, they said. If suggestions by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) are not accepted, businesses will hold a national convention in Lahore in February to chalk out their future plan, they added.
ENGRO, PSO, NRL and DGKC may lead the index in positive direction

The Benchmark KSE100 Index have expanded its 61.8% correction in bullish direction and now its heading towards its major resistance level of 38900 points. If index would become able to close above that region then next target would be 40150. It need to be very cautious today as supportive region for index is standing at 38300 and 38100 points which could support index in case of any bearish momentum. Its recommended to book profits around 38900 once and initiate positions again if index would close above 38900 on hourly chart.