PSX Daily Market Review - 22nd Jan. 2018

Trading volume at PSX floor dropped by 58.99 million shares or 21.97% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 43647.33, posted a day high of 44203.13 and a day low of 43609.16 during last trading session. The session suspended at 44178.83 with net change of 597.95 and net trading volume of 97.36 million shares. Daily trading volume of KSE100 listed companies dropped by 27.17 million shares or 21.82% on DoD basis.
Foreign Investors remained in net buying position of 2.41 million shares and net value of Foreign Inflow increased by 6.41 million US Dollars. Categorically, Foreign Corporate investors remained in net buying postion of 3.39 million shares but Foreign Individuals and Overseas Pakistanis remained in net selling postions of 0.02 and 0.97 million shares. While on the other side Local Individuals, Companies and NBFCs remained in net buying positions of 7.13, 1.04 and 3.45 million shares respectively but Local Banks, Mutual Funds, Brokers and Insurance Companies remained in net selling positions of 2.5, 2.76, 1.25 and 2.35 million shares respectively.

Financial markets in the United States and Asian stocks took a knock early on Monday after the U.S. government was forced to shut down amid a dispute between President Donald Trump and Democrats over immigration. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dropped 0.2 percent while Japan's Nikkei .N225 was down 0.1 percent. U.S. S&P500 mini futures ESc1 dipped 0.15 percent in early trade while U.S. Treasuries futures price TYc1 dropped 5/32 to 6 1/2-year low. Republican and Democratic leaders of the U.S. Senate held talks on Sunday seeking to break the impasse that has kept the U.S. government shut down for two days, but it was unclear if a deal could be struck to reopen federal agencies by the start of the work week.
The import of used cars has jumped considerably in first five months of fiscal year 2017-18 (5MFY18) due to improving macros and better law and order situation. In 5MFY18, the imports of used cars clocked in at 34,000 units, which were higher than expectation given that an estimated 55,000 units of used car were imported in entire FY17. The used cars imports gained momentum in 5MFY18 with average monthly imports touching 6,800 units as compared to around 4,600 units on monthly basis in FY17. According to a report of Topline securities, the used car are being imported via three schemes in Pakistan including transfer of residence, gift scheme and personal baggage, which were put in place to facilitate overseas Pakistanis. According to industry sources, most of these cars are being brought into Pakistan under transfer of residence scheme and the other two schemes are rarely utilised for this purpose. Value of used car imports in FY17 was estimated to be between US$500-750mn.
Pakistan witnessed an increase of around 80 percent in oil and gas exploration activities in different potential areas during the last four years of current government as compared to corresponding period of the previous regime. In its stride to achieve self-sufficiency in the energy sector, the present government took a number of initiatives which resulted in drilling of over 179 exploratory and 194 appraisal/developmental wells. “Subsequently, the exploration and production (E&P) companies made over 101 new oil and gas discoveries with 40 percent success rate, which is a hallmark of the PML-N government,” official sources told APP. They termed the increased number of discoveries a 'record' set by the present government in a short span of four years, which so far added over 944 million cubic feet per day (MMCFD) gas in the transmission network across the country and added 32,343 barrels oil per day (BOPD) in the domestic production.
Adviser to the PM for Economic Affairs Miftah Ismail has said that the present government had taken steps to bring improvement in the energy sector which would help enhance economy and GDP growth rate. “We made efforts to resolve the issues of electricity and gas,” he said talking to a private news channel. After addressing the problems of electricity and gas, there was a need to achieve seven to eight percent GDP growth rate, he said. Commenting on CPEC projects he said Chinese were making heavy investment in Pakistan which would have positive impact on our economy.–APP The present government was spending billions of dollars on road infrastructure, Miftah said. The focus was given to establish Gwadar Port, hospitals, highways and other development projects in Balochistan, he said.
The government would initiate branding Pakistan internationally with a well-designed campaign to promote exports as well as enhancing competitiveness of country's products in international market. Ministry of Commerce is working on developing a three-stage communication and image building strategy which will work on branding Pakistan (image building), made in Pakistan (trade) and Make in Pakistan (investment). Official sources on Sunday said that Pakistan 's exports have witnessed an increasing trend and reached $9.03 billion in first five months (July to November 2017-18), registering 10.50 percent growth as compared to corresponding period last year.
Its recommended to practice caution as market is expected to remain volatile.

The Benchmark KSE100 Index had succeeded in expiring impact of doji during last trading session and have closed above its first major resistance of 43760 points but it still have not succeeded in closing above 44200 points which is also a major resistance becuase a horizontal resisitance is posting a crossover with a resistant trend line at region. Weekly Stochastic and daily MAORSI are ready for a bearish crossover and they would succeed if index would not become abel to close above 44230 during current trading session. Closing above 44230 would call for 44700 and 44950 points but rejection from this level would call for 43500 and then 42880 in coming days. Its recommended to stay cautious and avoid new buying during current trading session untill market clear its way in either side.