PSX Daily Market Review - 24th April 2018

Trading volume at PSX floor dropped by 31.40 million shares or 21.80% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 45,235.40, posted a day high of 45,425.05 and a day low of 45,195.48 during last trading session. The session suspended at 45,371.95 with net change of 112.61 and net trading volume of 61.79 million shares. Daily trading volume of KSE100 listed companies increased by 3.96 million shares or 6.86% on DoD basis.
Foreign Investors remained in net selling position of 25.04 million shares but net value of Foreign Inflow dropped by 2.13 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in net buying position of 0.01 and 1.0 million shares but Foreign Corporate Investors remained in net selling position of 26.05 million shares. While on the other side Local Individuals, Local Companies, NBFCs, Brokers and Insurance Companies remained in net buying positions of 19.94, 1.57, 0.01, 1.53 and 3.06 million shares but Banks and Mutual Fund remained in net selling positions of 1.31and 0.71 million shares respectively.

U.S debt deluge lifts bond yields to four-year high, Asia stocks down
Asian stocks slipped and the U.S. dollar advanced on Tuesday, as a deluge of U.S. government debt this week and the specter of inflation and a higher fiscal deficit drove U.S. borrowing costs near four-year highs.MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.25 percent. Japan's Nikkei .N225 rose 0.7 percent thanks to fall in the yen. U.S. bond prices have fallen for the past four days, pushing up the 10-year yield to 2.998 percent US10YT=RR, its highest level since January 2014. “There are concerns about inflation, rising oil prices and also U.S. fiscal conditions,” said Hiroko Iwaki, senior strategist at Mizuho Securities, noting the U.S. budget deficit is expected to hit $1 trillion next year.
Caution and optimism at CPEC conference
Federal Commerce Secretary Mohammad Younus Dagha said free trade agreements (FTAs) are the main reason behind surging trade deficits of the country and after various projects under CPEC the trade balance has substantially tilted in favour of China due to massive increase in imports. “If imports are growing under capital goods then this is not a serious concern,” he said while addressing the two-day CPEC Summit, organised by Dawn Media Group in collaboration with Ministry of Planning, Development and Reform and Pakistan-China Joint Chamber of Commerce and Industry.
Rupee starts falling against dollar again
Contrary to the denial of government about any further depreciation of rupee the local currency has once again started falling against the US dollar, touching Rs118.80 versus dollar in the open currency market on Monday. The central bank has ruled out any possibility of a further depreciation of the rupee against the US dollar and expressed concerns over the rising value of greenback in the open market, as the exchange rate in inter-bank market is almost flat at Rs115.50. Recently, Adviser to PM on Finance Miftah Ismail has also claimed that Pakistan did not see any further devaluation of rupee in near future.
Funds released for agri development
The government has released Rs 1,011.04 million under PSDP 2017-18 for different research and developmental projects of Ministry of National Food Security and Research as against the total allocations of Rs 1,615.969 million for current fiscal year. According the data of Planning Commission of Pakistan, during last three quarters of current financial year, the government had released Rs 305 million for the promotion of olive cultivation on commercial scales across the country as an amount of Rs 500 million had been allocated for the above mentioned projects in order to enhance the domestic production of edible oil to reduce the import cost of the commodity.–APP Under PSDP 2017-18, the government has released Rs 199.016 million for national pesticides residue monitoring system in the county as against the total allocation of 284 million during the period under review.
Pak-Qatar Takaful posts profit of Rs 133 million
Pak-Qatar Takaful Group has registered an immense growth during the preceding year with an aggregate turnover of around Rs. 9.0 billion. The group posted a net profit after tax of Rs. 133 million during the year ended 31-December-2017, while its participant Takaful Fund generated the net consolidated surplus of Rs. 116 million. Pak-Qatar Takaful Group, which comprises of Pak-Qatar Family Takaful Limited and Pak-Qatar General Takaful Limited, reviewed and approved the financial statements of both the companies for the year ended December 31, 2017 during the Group's Board of Directors meeting. Pak-Qatar Takaful is Pakistan's Pioneer and largest Takaful Group operating for more than a decade with the largest branch network nationwide.

The Benchmark KSE100 Index is being capped by multiple resistant regions between 46,600 and 45,860 points. Ascending trend line which was previously supporting index is now reacting as a major resistance and right now a crossover of two trend lines is taking place with a horizontal resistance region at 45,600 and 45,860 points. Daily Stochastic and MAORSI are trying to start a bullish reversal but hourly time frame is not supporting any kind of bullish run therefore it’s expected that index would remain under pressure during current trading session. Weekly momentum indicators are also in bearish mode therefore it’s expected that index would continue its bearish rally towards 44,800 points at least and closing below 44,700 points would add further pressure on index on short term basis.