PSX Daily Market Review - 23rd Jan 2019

Trading volume at PSX floor increased by 12.31 million shares or 9.89% on DoD basis, whereas the benchmark KSE100 index opened at 39,557.26, posted a day high of 39,959.22 and a day low of 39,485.76 points during last trading session while session suspended at 39,902.21 with net change of 358.44 points and net trading volume of 88.46 million shares. Daily trading volume of KSE100 listed companies increased by 11.41 million shares or 14.81% on DoD basis.
Foreign Investors remained in net selling positions of 0.31 million shares and net value of Foreign Inflow dropped by 2.06 million shares. Categorically, Foreign Individuals and Overseas Pakistanis remained in net selling positions of 0.09 and 1.00 million shares but and Foreign Corporate remained in net buying positions of 0.78 million shares respectively. While on the other side Local Companies, Banks, NBFCs, Mutual Fund and Brokers remained in net buying positions of 1.17, 0.26, 0.02, 3.57 and 1.57 million shares respectively but Local Individuals and Insurance companies remained in net selling positions of 5.20 and 2.33 million shares respectively.

Asian shares dip, worries over growth and trade sour mood
Asian stocks edged down on Wednesday on mounting signs of slowing global growth and anxiety over a yet-unresolved Sino-U.S. trade dispute. Japan's Nikkei .N225 dropped 0.7 percent while MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipped 0.1 percent. On Wall Street, the S&P 500 .SPX, the Nasdaq .IXIC and the Dow .DJI all posted their biggest one-day percentage drops since Jan. 3 on Tuesday. The S&P lost 1.42 percent.
Western parts to be included in 2nd phase of CPEC: China
Ambassador of China to Pakistan Yao Jing on Tuesday visited Area Study Centre for Russia, China and Central Asia, University of Peshawar for a round table conference on BRI, CPEC and Peace Prospects in Afghanistan. The conference was attended by Gen (retd) Asad Durrani, Prof Dr Azmat Hayat, Rahimullah Yousafzai, Rustam Shah Mohmand, Brig (retd) Saad, Brig (retd) Mehmood Shah, Muhammad Abid, Pro-vice chancellor University of Peshawar, Dr. Zahid Gul, and faculty members and scholars.
ADFD allocates $3b to SBP
Abu Dhabi Fund for Development (ADFD) has formalized an amount of $3 billion (AED11 billion) to State Bank of Pakistan with an aim to support Pakistan’s economic growth and to achieve the long-term objectives of its monetary policy. According to the WAM news agency’s report received here on Tuesday, the decision to formalize the deposit was made under the directives of the Sheikh Khalifa bin Zayed Al Nahyan, President and Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
NHA asks M/s Multinet to pay Rs259m
The National Highway Authority (NHA) following a recent judgment passed by the Sindh High Court (SHC) has asked M/s Multinet Pakistan Private Limited to pay Rs.259.336 million, which are outstanding against it for the use of NHA’s Right of Way (ROW). M/s Multinet is a telecom company providing connectivity solutions through its 12,000 km long self-healing and scalable optical fiber network covering over 120 cities of Pakistan while the company is using the national highways’ ROW across the country to lay down its network.
Govt, France sign Rs19.5b loan agreement
France has signed loan agreement worth Rs19.5 billion (130 million Euros) with government of Pakistan for Peshawar Sustainable Bus Rapid Transit Corridor Project. Secretary Economic Affairs Division (EAD) Noor Ahmed, Marc Barety, Ambassador of France, and Jacky AMPROU, Country Director of the French Agency for Development (AFD), here on Tuesday signed a credit facility agreement worth Euros 130m for financing Peshawar Sustainable Bus Rapid Transit Corridor project.

The Benchmark KSE100 index is being capped by two resistant trend lines on daily chart along with a strong horizontal resistant region at 39,960 and 40,350 points respectively, daily momentum indicators have started bullish trend once again on hourly chart index is losing momentum which lead index towards an intraday correction if it would not succeed in closing above 40,000 points on hourly chart. As of now it’s recommended to stay cautious as index is standing at very crucial stage and in case of breakout of either side index would start a new rally which would add further 1000-1500 points in coming days. It’s expected that index would face strong resistance between 40,300 to 40,500 points region therefore its recommended to post trailing stop loss on long positions and wait for market reversal to initiate new short positions.