PSX Daily Market Review - 22nd Feb. 2018

Trading volume at PSX floor increased by 18.36 million shares or 10.82% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 43509.98, posted a day high of 43623.59 and a day low of 42834.21 during last trading session. The session suspended at 42919.78 with net change of -375.17 and net trading volume of 78.21 million shares. Daily trading volume of KSE100 listed companies increased by 9.32 million shares or 13.53% on DoD basis.
Foreign Investors remained in net selling position of 6.65 million shares and net value of Foreign inflow dropped by 8.46 million US Dollars. Categorically, Foreign Corporate Investors remained in net selling postion of 8.74 million shares but Overseas Pakistanis remained in net buying position of 2.09 million shares. While on the other side Local Individuals, Companies, NBFCs and Brokers remained in net buying positions of 2.81, 1.34, 0.14 and 3.27 million shares respectively but Mutual Funds and Insurance Companies remained in net selling positions of 2.33 and 0.88 million shares.

Most Asian share markets followed S&P 500 futures lower on Thursday as speculation of faster hikes in U.S interest rates soured risk appetite globally. The dollar held onto most of its overnight gains courtesy of higher Treasury yields, though the sudden shift to safety spurred demand for the Japanese yen. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS eased 0.8 percent, while E-Mini futures for the S&P 500 ESc1 lost 0.5 percent. Japan's Nikkei .N225 shed 1.2 percent, with office equipment maker Ricoh (7752.T) down more than 5 percent on news it was conducting impairment tests. Chinese markets were in a better mood, returning from their long holiday break with a gain of 1.9 percent for blue chips .CSI300. On Wall Street, the Dow .DJI had ended Wednesday down 0.67 percent, while the S&P 500 .SPX fell 0.55 percent and the Nasdaq .IXIC 0.22 percent.
The Supreme Court on Wednes­day unsealed three rival sugar mills in south Punjab when the five existing and operational mills failed to reach an agreement on finding a via media for lifting the available sugarcane crop from the farmers at the government price of Rs180 per maund. “Primarily the best interest of the farmers is a predominant factor,” Chief Justice Mian Saqib Nisar observed while ordering to unfreeze the three mills while hearing a plea raised by the Pakistan Kissan Ittehad before a three-judge bench. The sugar mills which will commence operation instantly are Haseeb Waqas Sugar Mills Ltd, Chaudhry Sugar Mills Ltd and Ittefaq Sugar Mills.
The National Electric Power Regulatory Authority (Nepra) on Wednesday granted a 25-year special purpose transmission licence to Pak Matiari-Lahore Transmission Company Ltd (PMLTCPL) — a company owned by three Chinese firms — for the construction of 878-kilometre line. The special purpose vehicle (SPV) company PMLTCPL will be owned by two Hong Kong-based companies: Zhong Cheng Xin International Ltd holding a stake of 69.98 per cent and Zhong Zhuo Ye International Ltd 30pc. Both the companies are wholly owned by State Grid International Engineering Ltd, a 100pc subsidiary of China Electric Power Equipment and Technical Company (CET) which in turn is 100pc owned by State Grid Cooperation of China (SGCC).
The exports of value-added textile products posted a growth of 12.8 per cent year-on-year to $4.4 billion in the first seven months of 2017-18, the Pakistan Bureau of Statistics said on Wednesday. The export proceeds from the value-added sector rebounded after the textile division took some corrective measures for the speedy clearance of due refunds and early payments of cash export subsidies. It also helped fuel the rise in overall imports. Product-wise details show that exports of ready-made garments in the first seven months edged up nearly 14pc in value and 13pc in quantity while knitwear exports increased by 13.3pc in value, and 3.3pc in quantity during the period under review. Bed-wear exports also rebounded, going up by 5.6pc in value and 4pc in quantity. The export proceeds of towels also recorded a modest growth of 1.01pc in value and 5pc in quantity during the duration considered.
State Minister for Water and Power Abid Sher Ali has said that all power plants being run on oil will be shut down by 2019-20 and coal-fired power plants at Port Qasim will start generating 1,320 megawatts of electricity by next month. Mr Ali said at an open katchehry in Wapda ground on Wednesday that record energy production had been achieved and 25,000MW of electricity would be available in the system during this year’s summer season. He claimed that there was no electricity in the system when Mian Nawaz Sharif became prime minister but his government soon put an end to the “rule of darkness”.
Market seems to remain volatile during current trading session therefore its recommended to practice caution.

The Benchmark KSE100 Index have again slided back into a bearish trend channel after retesting its resistant region during last trading session and right now its expected that index would start current trading session with a negative momentum which would lead index towards 42530 and 42140 points where a strong supportive region would try to push index back for an intraday recovery. Its recommended to sell on strength during current trading session as index have strong resistant regions ahead at 43270 and 43540 points for current trading session.