PSX Daily Market Review - 23nd Oct 2018

Trading volume at PSX floor increased by 4.11 million shares or 1.78% on DoD basis, whereas the Benchmark KSE100 index opened at 38,505.97 posted a day high of 37,783.87 and day low of 37,266.93 points while the session suspended at 38,345.42 with net change of -84.85 points and net trading volume of 138.85 million shares. Daily trading volume of KSE100 listed companies increased by 23.29 million shares or 20.16% on DoD basis.
Foreign Investors remained in net selling position of 7.27 million shares and net value of Foreign Inflow dropped by 3.68 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistanis investors remained in net selling positions of 4.47 and 2.80 million shares. While on the other side Local Companies, NBFCs, Mutual Fund and Insurance Companies remained in net selling positions of 8.78, 0.36, 2.69 and 1.53 million shares but Local Individuals, Banks and Brokers remained in net buying positions of 15.86, 3.00 and 1.35 million shares respectively.

Oil little changed despite Saudi pledge to boost output
Oil futures were little changed on Monday after paring earlier losses despite Saudi Arabia’s pledge to raise crude production to a record high, two weeks before U.S. sanctions potentially choke off Iranian supplies. Saudi Energy Minister Khalid al-Falih told Russia’s TASS news agency that his country had no intention of unleashing a 1973-style oil embargo on Western consumers, but rather was focused on raising output to compensate for supply losses elsewhere, such as Iran. Falih said Saudi Arabia would soon raise output to 11 million barrels per day (bpd) from the current 10.7 million. He added that Riyadh had capacity to increase production to 12 million bpd.
PR establishes task force on freight trains
In line with the directives of Federal Minister for Pakistan Railways (PR) Sheikh Rashid Ahmed to improve business, the PR has established a Task Force on freight trains. According to a press release issued by Ministry of Railways here on Monday, the spokesman of Pakistan Railways said that headed by Chief Executive Officer (CEO) Aftab Akbar, the Task Force would consist of nine officers of the department. Basic purpose of the Task Force was to improve the business of freight trains and special steps had been taken in this regard, the PR spokesman added.
Country received only $1.04b loans in Q1
International lenders have given only $1.04 billion loans to Pakistan in the first quarter (July to September) of ongoing fiscal year at the time when Islamabad is repaying massive loans that is depleting the foreign exchange reserves. Pakistan had received over $1.04 billion loans under the head of foreign assistance in July-September of the current financial year. The received amount is only 10 percent of the estimated annual loans, which is $9.69 billion. The amount of loans would increase in the months to come as Pakistan had already approached International Monetary Fund (IMF), friendly countries like China and Saudi Arabia and would issuing bonds in the international market.
Exports of food commodities up by 16.9pc
Food group exports form the country during first quarter of financial year 2018-19 grew by 16.93 percent as compared to exports of the corresponding period of last year. The exports of food group from the country during the period under review were recorded at $885.774 million as against $740.448 million of the same period of last year, according the data released by the Pakistan Bureau of Statistics. On month on month basis, the exports of food group also increased by 31.25 percent in September, 2018 as compared the same month of last year. The food commodities worth $297.231 million were exported as compared to $228.456 million of same month of last year, it added. During the period from July-September, 2018, exports of fruit and vegetables increased by 49.34 percent and 19.17 percent respectively. In first quarter, 130,747 metric tons of fruit worth $101.884 million was exported as compared to exports of 83,073 metric tons valuing $68.210 million of same period of last year
President for promoting export based industry
President Dr Arif Alvi has sought private sector cooperation in promotion of export based industry to strengthen the national economy. Talking to FPCCI delegation which on him at Aiwan-i-Sadr on Monday, the President said that that the increase in exports is of vital importance to narrow down trade deficit. He further emphasized that establishment of new industrial zones is very important for the expansion of industry. He also underlined that the industrial zones should be established in such a manner that export sectors must benefit from these and all sectors of manufacturing should be given equal opportunities. The President also stressed that increase in local manufacturing especially in auto mobile industry will benefit the country.

The Benchmark KSE100 Index have bounced back after getting resistance from crossover of a horizontal resistance and a rising trend line during last trading session while on same region its 50% correction also have been completed of its latest bearish rally. As of now index have supportive regions ahead at 37,700 and 37,300 points while resistant regions are standing at 38,800 and 39,300 points therefore it’s recommended to start selling or profit taking on strength because hourly momentum indicators have changed their trend and index have created a hammer on daily chart which is sign of reversal pattern and there are chances of formation of an evening star if index would succeed in closing below 38,089 points.