PSX Daily Market Review - 23rd July 2018

Trading volume at PSX floor dropped by 114.41 million shares or 33.94% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 41,810.96, posted a day high of 41,810.96 and a day low of 41,157.45 during last trading session. The session suspended at 41,221.75 with net change of -573.84 and net trading volume of 116.45 million shares. Daily trading volume of KSE100 listed companies dropped by 62.53 million shares or 34.94% on DoD basis.
Foreign Investors remained in net selling position of 7.15 million shares but net value of Foreign Inflow increased by 0.67 million US Dollars. Categorically, Overseas Pakistani remained in net buying positions of 1.43 million shares but Foreign Corporate Investors remained in net selling positions of 8.57 million shares respectively. While on the other side Local Individuals, Banks, Mutual Fund, Brokers and Insurance Companies remained in net buying positions of 9.98, 4.27, 0.44, 0.16 and 3.73 million shares respectively but Local Companies and NBFCs remained in net selling positions of 11.15 and 0.12 million shares.

Asian stocks ease, dollar near two-week lows on Trump comments
Asian shares dipped on Monday on fears of more protectionist measures from the United States while the dollar declined against major currencies after U.S. President Donald Trump criticized the Federal Reserve’s tightening policy. Asian stocks took Wall Street's cue on Monday with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS falling 0.2 percent. Japan's Nikkei .N225 stumbled 1.4 percent, Australian shares and South Korea's KOSPI index .KS11 fell 0.9 percent each. Chinese shares also opened lower but quickly reversed their losses, with both the blue-chip index .CSI300 and Shanghai's SSE Composite .SSEC up a touch.
Irsa asks Wapda to probe huge Indus water loss
The mystery of losing 100,000 cusecs of water from Besham to Tarbella in the River Indus has not been resolved and the Indus River System Authority (Irsa) has asked Wapda to investigate the matter. After the water flows in River Indus increased in the wake of enhanced temperature in the catchment areas, daily 80,000 to 100,000 cusecs water is disappearing from Besham to Tarbella, official source told The Nation here Sunday. It takes 24 to 48 hours for water to reach from Besham to Tarbela but the missing of such huge quantity is a big mystery, source said. For example, at Partab, a location on River Indus, the water flows are 275,000 cusecs, which reach to 300,000 at Besham but only 210,000 cusecs reach to Tarbela, the source said.
Chinese firm to boost investment in Pakistan
A leading Chinese digital solutions provider has shown tremendous interest to explore Pakistani market for investment and business through the joint ventures with famous local IT companies. “If the future cooperation with local distributors goes smoothly, we would set up our business office in Pakistan to become a partner of local IT companies to achieve business innovation and industrial upgrades” International Business Leader of the Belt and Road Working Group, New H3C Group, Jason told APP in an exclusive interview here on Sunday. He said, in the beginning, we want to supply switches, routers and other ICT appliances together with leading companies in Pakistan. And we can design and manufacture customized products for Pakistan leading companies. Being the data centers of famous IT companies globally, it provides a full range of computing, storage, networking and security under its digital solutions infrastructure.
Many CPEC projects in doldrums as NHA faces financial crisis
A number of road projects related to the $52 billion China-Pakistan Economic Corridor (CPEC) are said to be in doldrums as the National Highway Authority (NHA) faces financial crisis. Sources told Dawn that contractors have stopped work on several CPEC projects after their cheques worth over Rs5 billion had bounced a couple of days ago. It is for the first time that CPEC projects faced such a situation because of financial reasons. The projects which have been hit by the situation include Hakla-Dera Ismail Khan, Western Route of CPEC and all sections of Karachi-Lahore Motorway (KLM). According to the sources, seven packages of Hakla-DIK measuring 400km roads all projects of KLM have been affected.
Govt to provide financial assistance to farmers
Punjab Agriculture Department will provide financial and technical assistance to farmers under a project to develop irrigation system on modern lines in non-canal areas of the province.Spokesperson of the department Najaf Abbas said that assistance will be provided to those farmers who have sufficient quantity of water and their irrigated area is at least five acres,reported Radio Pakistan.He said that application forms for registration in the scheme can be obtained from office of Deputy Director or Assistant Director, Water Management or downloaded from website wm.agripunjab.gov.pk.

DGKC, PAEL, MLCF and SNGP may lead the trend in positive direction during current trading session.

The Benchmark KSE100 Index had generated a bearish engulfing formation after getting resistance from a descending trend line on daily chart. As of now index have supportive region ahead at 40,880 points where a gap was left while market was moving upward and once that gap would be completed index would try to pull back again to complete its 61.8% correction. Therefore it’s expected that index would try to pull back during current trading session after an intraday dip and would try to create a cheat patter against very clear bearish indication of a bearish engulfing pattern. It’s recommended to start buying on dip with strict stop loss and index could start a bullish rally towards 12,130 points until it close below 40,500 points on daily chart.
For current trading session DGKC, PAEL, MLCF and SNGP are looking attractive. DGKC could target 109 and then 112 in coming days if it would not slide below 98 Rs. PAEL and MLCF would try to target 38 and 49 respectively while SNGP would face resistance around 96 Rs.