PSX Daily Market Review - 22nd Jan 2019

Trading volume at PSX floor dropped by 30.51 million shares or 19.68% on DoD basis, whereas the benchmark KSE100 index opened at 39,345.13, posted a day high of 39,812.36 and a day low of 39,306.50 points during last trading session while session suspended at 39,543.77 with net change of 237.27 points and net trading volume of 77.05 million shares. Daily trading volume of KSE100 listed companies dropped by 44.56 million shares or 36.64% on DoD basis.
Foreign Investors remained in net selling positions of 0.36 million shares and net value of Foreign Inflow dropped by 0.64 million shares. Categorically, Foreign Individuals and Foreign Corporate remained in net buying positions of 0.12 and 0.42 million shares but and Overseas Pakistanis remained in net selling positions of 0.90 million shares respectively. While on the other side Local Individuals, Banks, NBFCs, Brokers and Insurance companies remained in net selling positions of 3.97, 3.23, 0.01, 2.79 and 0.93 million shares respectively but Local Companies and Mutual Fund remained in net buying positions of 5.13 and 4.44 million shares respectively.

Asian shares, U.S. stock futures dented by growth worries
Asian shares and U.S. stock futures slipped on Tuesday as pessimism about world growth drove investors away from risky assets, while sterling dithered as the latest plan for Brexit appeared to come and go with no progress. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.5 percent, drifting away from a recent seven-week top. Losses were led by Chinese shares, with the blue-chip index .CSI300 off 0.6 percent. Hong Kong's Hang Seng index .HSI was down 0.4 percent and Australia's main share index faltered 0.5 percent.
E&P firms pursuing target to drill 90 wells
Exploration and Production (E&P) companies, operating in different potential areas across the country, are working on ambitious targets of drilling 90 wells and achieving production of 33.50 million barrel (mbbl) crude oil and 1.473 trillion cubic feet (tcf) natural gas during the current fiscal year. Under the plan, as many as 50 exploratory and 40 developmental wells would be drilled to meet the indigenous production target, official sources told APP. Indigenous crude oil production meets only 15 percent of total petroleum products requirement of 26.4 million tons, while 85 percent met through imports of crude oil and refined products.
Basmati rice worth $256.9m exported in first half
Basmati rice worth $256.922 million was exported during first half of current financial year as compared to exports of $ 203.721 million of the corresponding period of last. During the period from July-December, 2018-19, about 274,132 metric tons of Basmati rice was exported as against the exports of 191,534 metric tons of same period of last year, according the data of Pakistan Bureau of Statistics. The exports of Basmati rice witnessed about 26.11 percent growth during the period under review, whereas overall food group exports from the country increased by 3.09 percent, it added. In last six months food commodities valuing $1.994 billion were exported as against the exports of $1.935 billion of same period of last year. During the period under review, about 1.553 million metric tons of rice valuing $828.966 million was exported which was recorded at 1.788 million metric tons worth $849.634 million of same period of last year.
Minister for GIS mapping of 11Kv feeders
Federal Minister for Power, Omar Ayub Khan has directed the electricity distribution companies (DISCOs) to immediately undertake GIS mapping of all the 11Kv feeders and replace the 100000 electromagnetic electricity meters with digital meters by end of February 2019 to reduce line losses. The minister passed these directions while presiding over a meeting on the overall performance of the Ex-WAPDA Distribution Companies (Discos) here Monday. The meeting was attended by the Chief Executive Officers (CEO) of all DISCOs. The meeting also discussed the plan for the upcoming summer.
IT exports fetch $540m in six months
The information technology (IT) and telecommunication industry of the country has contributed $540 million foreign exchange to national kitty through exports during first two quarters of this fiscal year 2018-2019. The telecommunication, computer and information services managed to export IT and IT-enabled services worth US $ 540 million, seeing an increase of $20 million as compared to exports figures of same period last year, statistics of State Bank of Pakistan (SBP) revealed. The year-on-year increase of just 3.8 per cent in export value of IT industry is a lower than expected and it is likely due to impact of rupee's depreciation against dollar. It is pertinent to mention here that Pakistan's IT industry achieved a benchmark of US $ 1.065 billion of exports in last financial year 2017-18. Pakistan Software Exports Board (PSEB) had chalked out a plan to boost exports to over US$ 6 billion by 2020 and US $ 10 billion by 2025. The present government has also emphasized digitization of the economy and the IT sector.

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.