PSX Daily Market Review - 22nd Oct 2018

Trading volume at PSX floor increased by 7.84 million shares or 3.51% on DoD basis, whereas the Benchmark KSE100 index opened at 38,019.32, posted a day high of 38,467.41 and day low of 37,759.95 points while the session suspended at 38,340.27 with net change of 448.02 points and net trading volume of 115.56 million shares. Daily trading volume of KSE100 listed companies dropped by 0.90 million shares or 0.77% on DoD basis.
Foreign Investors remained in net selling position of 4.77 million shares and net value of Foreign Inflow dropped by 5.18 million US Dollars. Categorically, Foreign Individuals and Foreign Corporate remained in net selling positions of 0.01 and 5.67 million shares but Overseas Pakistanis investors remained in net buying positions of 0.91 million shares. While on the other side Local Companies, Banks, NBFCs, Mutual Fund and Insurance Companies remained in net selling positions of 0.78, 2.18, 0.70, 3.53 and 1.54 million shares but Local Individuals and Brokers remained in net buying positions of 8.66 and 4.69 million shares respectively.

Asia shares pare losses as China rallies on stimulus hope
Asian share markets pared early losses on Monday as Chinese stocks swung higher for a second session and helped offset geopolitical concerns over Saudi Arabia, Italy and Brexit. Blue chips in Shanghai climbed 3.5 percent in early trade there, extending Friday’s bounce on Beijing’s pledge of support for the economy and companies. That helped E-Mini futures for the S&P 500 halve their initial loss to be down 0.25 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan turned around to edge up 0.2 percent. Japan’s Nikkei was off 0.2 percent, after being down over 1 percent earlier, as were South Korean stocks.
ERRA can assist in PM's Naya Pakistan Housing project: Brig Latif
Earthquake Reconstruction and Rehabilitation Authority (ERRA) Acting Deputy Chairman Brigadier Muhammad Latif said the Authority has the potential to provide assistance in Prime Minister Imran Khan's Naya Pakistan Housing Project. Talking to APP, Acting Deputy Chairman said the Authority has finally accomplished over 600,000 houses in Azad Jammu and Kashmir (AJK) and Khyber Pakhtunkhwa (KPK) province whereas 72 percent of the total projects completed in the disaster hit areas of devastating earthquake 2005.
China expects major participation of Pakistani businessmen in CIIE
Chinese government expects Pakistan’s major participation in the China International Import Expo (CIIE) that is scheduled to take place in Shanghai from November 5 to 10. Prime Minister Imran Khan is among the top dignitaries who have been invited to attend the opening session of the CIIE that reflects China’s sincere desire to step up its trade ties with Pakistan. The expo provides a major opportunity to Pakistani public and private sectors to take benefit of it for overcoming the existing trade deficit in the bilateral trade.
Egypt to help Tanzania build huge dam on Rufiji River
An Egyptian leading construction company has won a tender to design and build a huge dam on Tanzania's Rufiji River, the Egyptian presidency said in a statement on Sunday. The government-run Arab Contractors has been assigned to build Stiegler's Gorge dam considered by Tanzania as one of the most important national projects for power generation, said Egyptian presidential spokesman Bassam Rady in the statement. Rady said Egyptian President Abdel-Fattah al-Sisi was invited in a phone call by his Tanzanian counterpart John Magufuli to lay the foundation stone of the planned hydroelectric dam.
NHA to build Narowal- Narang Mandi Highway
National Highway Authority (NHA) has planned construction of link highway connecting Lahore-Sialkot Motorway (LSM) to Narowal and Narang Mandi in District Sheikhupura. The proposed 73 kilometre highway would link the adjacent areas with the Lahore-Sialkot Motorway, an official of NHA told APP on Sunday. Lahore-Sialkot Motorway project is being developed on a build-operate-transfer basis at an estimated cost of Rs 45.4 billion. The motorway project would help link remote areas with big cities and reduce the distance between Sialkot and Lahore, he said. The mega project would not only ensure fast inter-city travel but also provide economic boom as well as create employment opportunities in the region, he said. The Lahore- Sialkot Motorway starting from Sahowala-Sambrial will end at Kala Shah Kaku via Daska, Gujranwala and Kamoki. He said the project has a great commercial viability, which would be expanded to Kharian from Sambrial in the second phase.

DGKC, MLCF, PSO, DOL and PAEL would try to lead market with volatile price moves during current trading session.

The Benchmark KSE100 Index had continued its bullish momentum during last trading session and had penetrated above 38.2% correction of its last bearish rally along with a strong resistance of 38,300 points. As of now index have resistant regions ahead at 38,900 and 39,300 points where earlier falls at 50% correction of its recent bearish rally and former stands at a major resistant region which previously have reacted as a major supportive region. Index is also capped by a rising trend line at 38,900 points and crossover of said trend line and horizontal line is taking place at this level therefore it would resist against current bullish momentum. Index may continue its bullish momentum above 39,300 towards 39,500-39,600 points if it would succeed in closing above 38,900 points for completion of its 61.8% correction and a false breakout of 39,300 points, but it’s recommended to stay cautious and start profit taking at spikes.
TRG have a strong resistance ahead at 24.50 which would try to cap it bullish momentum therefore it’s recommended to stay cautious around this region but breakout of 24.50 on hourly chart would call for 25.60 or 25.80. PAEL have strong resistant region ahead at 26.60-27.30 and if would succeed in penetration above these regions then it would may start bearish reversal below 29.30 Rs. DOL have completed its 74.6% correction and now it’s being capped by a horizontal resistant region at 30.76 this bullish rally may would try to continue towards 32.60 or 33.13 but it would be difficult for it to maintain its bullish momentum on mid or long term basis because 100% expansion of its last weekly correction is being completed at 33.13 while its being capped by resistant trend line of its weekly bullish channel at 32.60. FFL is capped by a horizontal resistant region at 27.27 it may take a spike on long term basis on short term basis it would may start a dip before penetration of 27.30 Rs. DGKC and MLCF may would continue their bullish sentiment towards 90 and 41.40 Rs respectively because they have penetrated their resistant regions during last trading session. PSO would face strong resistance between 242-246 Rs because its being capped by a major resistant region between these price levels.