PSX Daily Market Review - 22nd May 2018

Trading volume at PSX floor increased by 5.61 million shares or 6.77% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 41,721.39, posted a day high of 41,912.68 and a day low of 41,595.41 during last trading session. The session suspended at 41,648.65 with net change of 25.13 and net trading volume of 52.32 million shares. Daily trading volume of KSE100 listed companies dropped by 3.06 million shares or 5.53% on DoD basis.
Foreign Investors remained in net selling position of 4.18 million shares and net value of foreign Inflow dropped by 4.26 million US Dollars. Categorically, Foreign Individuals, Foreign Corporate and Overseas Pakistanis Investors remained in net selling positions of 0.23, 3.25 and 0.71 million shares. While on the other side Local Individuals, Local Companies, Banks and Insurance Companies remained in net buying positions of 0.78, 11.68, 1.55 and 13.48 million shares but, NBFCs, Mutual Fund and Brokers remained in net selling positions of 0.13, 0.43 and 24.53 million shares respectively

Dollar holds near four-month highs, oil near multi-year top
The dollar hovered near four-month highs on Tuesday on renewed optimism about global growth as the United States and China agreed to drop their tariff threats, while oil stayed at multi-year peaks over potential sanctions in Venezuela. Beijing and Washington both claimed victory on Monday as the world’s two largest economies stepped back from the brink of a global trade war and agreed to hold further talks to boost U.S. exports to China. While the apparent truce over their trade disagreements bolstered sentiment on Wall Street, it failed to excite stock markets in Asia. Japan’s Nikkei was barely changed while Australian shares fell 0.7 percent with energy shares the only bright spot on the index. Liquidity remains relatively thin due to holidays in South Korea and Hong Kong. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1 percent.
Lahore sees second power breakdown in a week
Despite addition of around 2400MW electricity by Haveli Bahadur Shah and Bhikki plants, the poor transmission system continued to hit the country, as the provincial capital faced another power breakdown on Monday when Kalashah Kaku transmission line was tripped, suspending electricity supply to more than 40 grid stations. Power ministry officials said that Lahore's major area faced a serious power breakdown when National Transmission and Dispatch Company's 500kv transmission line tripped in Kalashah Kaku, leading to halt in power supply to Ghazi Abad, Shalamar and Ravi Road Circuits. These three NTDCs circuits provide more than 40 grid stations of the city, they added. The officials said that first tripping was happened in Rawat and Gakkar transmission lines which also created troubles in Kalashah Kaku's 500kv transmission lines, besides halting power supply to Rawalpindi and Islamabad.
Pakistan attractive for foreign investors: ICCI
Sheikh Amir Waheed, president of Islamabad Chamber of Commerce & Industry, hosted an Iftar dinner in honour of foreign diplomats at his residence. Diplomats of various countries including China, Japan, France, Australia, Britain, Turkey, India, Belarus, Uzbekistan, Tajikistan, Kyrgyzstan, Azerbaijan, Morocco, UAE, Nepal, Switzerland, Sri Lanka, Sudan, Austria and Tunisia attended the Iftar dinner. M Naveed Malik, ICCI’s senior vice president, Nisar Mirza, vice president, Zubair A Malik, chairman of Founder Group, and a large number of local business community also attended the Iftar dinner. Speaking at the occasion, ICCI president said that Pakistan was an attractive destination for foreign investment as government has offered lucrative incentives to foreign investors. He said that to take full benefit of these incentives, foreign investors should explore opportunities of investment and joint ventures in various sectors of Pakistan’s economy.
1,180MW Bhikki plant starts full power generation
Quaid-e-Azam Thermal Power (Private) Limited, Harbin Electric International Company Limited and GE Power have announced the completion of combined cycle commissioning activities and the start of full-fledged commercial operations at the Bhikki Power Plant. The facility is now adding up to 1,180 megawatts (MW) of power to the national grid - the equivalent power needed to supply up to 2.4 million Pakistani homes. The plant is owned by QATPL, HEI is the engineering, procurement and construction (EPC) contractor for the project, responsible for setting up the power plant and all commissioning activities and GE has supplied two advanced HA heavy-duty gas turbines, associated equipment and technical advisory services for the facility.
LCCI seeks drive against counterfeit currency trade
The Lahore Chamber of Commerce and Industry has cautioned the masses in general and the business community in particular against proliferation of counterfeit notes and urged the government and the State Bank of Pakistan to launch mass drive to combat this menace. "Government should also take punitive action against anti-state elements involved in counterfeit currency trade as these black sheep are not only playing havoc with the economy but also protecting vested interests of the enemies of Pakistan." The LCCI President Malik Tahir Javaid called for a well designed campaign to educate people about the security features of currency notes. He said that it is the government that has the resources to curb this menace that is spreading its tentacles like anything and causing harm to the already dwindling economy..

The Benchmark KSE100 Index is trying to find support from crossover of two trend lines along with a horizontal line and these supportive objects would try to push index into positive zone during current trading session, therefore a positive spike could be witnessed on intraday basis. Hourly Stochastic and MAORSI also have generated bullish crossovers and these both would add support to instigate the bullish rally on intraday basis. But index would remain under pressure on short term basis because daily and weekly stochastic along with MACD are not in bullish mode and index would face strong resistances around 41,860 and 42,200 during current trading session. While 41,500 and 41,045 points regions would try to provide some ground on intraday basis. Closing below 41,500 on daily chart would lead index towards 40,900 and 40,700 points. For current trading session its recommended to wait for a spike to initiate selling on strength instead of buying on dip.