PSX Daily Market Review - 23rd Nov. 2017

Trading volume at PSX floor increased by 55.19 million shares or 54.21% on DoD basis, wherea, the benchmark KSE100 Index opened at 40643.09, posted a day high of 40741.91 and a day low of 40465.52 during last traidng session. The session suspended at 40591.87 with net change of 43.04 and net trading volume of 117.58 million shares. Daily trading volume of KSE100 listed companies increased by 74.12 million shares or 170.54% on DoD basis.
Foreign Investors remained in net selling position of 1.69 million shares and net value of Foreign Inflow dropped by 2.91 million US Dollars. Categorically, Foreign Individual and Corporate investors remained in net selling position of 0.15 and 3.88 million shares but Overseas Pakistanis remained in net buying position of 2.34 million shares. While on the other side Local Individuals, Companies, Mutual Funds, Brokers and Insurance Companies remained in net buying position of 8.66, 8.81, 2.09, 0.66 and 3.09 million shares respectively, but Local Banks remained in net selling position of 21.67 million shares.

Asian shares edged ahead on Thursday as speculation the Federal Reserve might not tighten U.S. policy as aggressively as first thought slugged the dollar and boosted bonds globally. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.15 percent to scale a fresh 10-year peak. Activity was light with Japanese markets closed for a holiday and the United States off for Thanksgiving. The dollar was nursing losses after suffering its worst one-day fall in five months on Wednesday, while hitting a three-month trough against the Japanese yen. The rout came after minutes of the Fed’s last meeting showed “many participants” were concerned inflation would stay below the bank’s 2 percent target for longer than expected.
The National Electric Power Regulatory Authority (Nepra) on Wednesday allowed about Rs3 per unit increase in bulk hydropower tariff for 19 hydropower projects for Water and Power Development Authority (Wapda). The Nepra’s decision will help to generate additional revenue of about Rs119 billion in a year, said the Nepra determination report. The regulator rejected the KP demand of allowing Net Hydel Proft (NHP) as per the AGN Kazi formula and allowed an increase @ Rs1.10 per unit for one year. However, KP Member in Nepra , Himayatullah Khan, in his dissension note disagreed with the idea of permanent fixing the NHP @ Rs1.10 per unit and said that this is in violation of the constitution. He said that under the interim arrangement, of fixed NHP @ Rs1.10/kwh indexed at 5/0 per annum, there is no other option but to pass on the amount of NHP to the end consumer. However, having said that, it is important to point out that the end consumers are already paying NHP in the monthly bills.
The Board of Directors (BoD) of Alternative Energy Development Board (AEDB) on Wednesday allowed consumers to install solar powered panels to generate electricity and sell the same to national grid . The BoD gave this approval in its 41st meeting held here. Allowing certification regulations for solar powered net metering in the country to facilitate consumers to install solar powered panels to generate electricity and sell the same to national grid is likely to bring 5,000 to 7,000MW electricity to the national grid , said federal Minister for Power Awais Laghari while presiding over the meeting of Board of Director of AEDB. The Power Division secretary and other members of the BOD participated in the meeting.
The sugar industry has feared that sugarcane crushing may be delayed in presence of around 0.6 million tons of carry over sugar stock. Pakistan Sugar Mills Association Chairman Javed Kayani pointed out that millers are facing serious financial constraints, as current sugar stocks will last by first quarter of 2018, having serious repercussions on the industry’s capacity to fulfill its fiscal obligations. Addressing a press conference, he maintained that sugar is in surplus in the country and the industry is forced to sell its product below cost, which may result in defaults to banks. He stated nine mills have been declared bankrupt while four are in shutdown position because of the indifferent attitude of the government towards the plight of sugar industry. He feared that if the situation persists and government does not take measures to clear the carryover stocks, then 2017-18 season may prove the last crushing season.
Six power generation plants of Tarbela dam on Wednesday closed owing to decreased water inflow in the lake bring down the power generation to 1,111MW. Owing to the winter season water inflow reduced to 21,800 cusec feet which also affect the power generation capacity of the dam, adding that six power generation units have been shut down and eight are working with low capacity. Total power generation capacity of the dam was 3,478 megawatts. On Wednesday the water inflow in the dam was recorded 21,800 cusecs and outflow was 38,000 cusec feet. –APP The water level of the Tarbela dam lake was reduced to 1,458.09 feet. During the coming few weeks more water inflow would be decreased.

The Benchmark KSE100 Index has penetrated a resistant trend line on hourly chart and has retested that region again as support during last trading session. As of right now index have a resistance ahead at 40637 therefore its necessary for index to open with a positive gap above that region to maintain its bullish trend which started on hourly chart. If index would be able to give a clear breakout of that region then next target for index would 40860 on intraday basis. It is recommended to buy on dip and sell on strength for the current trading session. If Index would be able to close above 40860 on daily chart then index would start a new bullish rally towards 42800 and 43400 in coming days.