Previous Session Recap
Trading volume at PSX floor dropped by 1.61 million shares or 0.89% on DoD basis, whereas the benchmark KSE100 index opened at 40,832.99, posted a day high of 40,832.99 and a day low of 39,931.78 points during last trading session while session suspended at 40,008.29 points with net change of -824.7 points and net trading volume of 104.29 million shares. Daily trading volume of KSE100 listed companies dropped by 0.16 million shares or 0.15% on DoD basis.
Foreign Investors remained in net buying positions of 0.24 million shares and value of Foreign Inflow increased by 1.06 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in net selling positions of 0.04 and 1.10 million shares but Foreign Corporate remained in net buying positions of 1.38 million shares. While on the other side Local Individuals, Companies, NBFCs, Brokers and Insurance Companies remained in net buying positions of 2.02, 23.59, 0.01, 5.69 and 6.43 million shares but Banks and Mutual Fund remained in net selling positions of 35.96 and 2.51 million shares respectively.
Analytical Review
Asia stocks drift lower as holiday lull counters trade cheer
Asian shares and U.S. stock futures darted in and out of losses on Tuesday, as the holiday lull offset optimism that a U.S.-China trade deal will boost exports and corporate earnings. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.01%. Blue-chip shares in China .CSI300 rose 0.29% after Premier Li Keqiang said on Monday the government was considering more measures to lower corporate financing costs. Australian shares were unchanged, while Japan's Nikkei stock index .N225 edged 0.02% lower. Sterling traded near a four-week low versus the euro and a three-week trough against the dollar on growing doubts over how Britain will navigate the transition period for its exit from the European Union.
Urea makers warn gas tariff hike to hit agri sector
The fertiliser sector has asked the government to reconsider proposed increase in gas prices, maintaining that it would raise urea rates and negatively impact food security of the country. In a letter to the Ministry of Industries, the fertiliser manufacturers said the latest gas price determination by the Oil and Gas Regulatory Authority (Ogra) on Dec 10 suggested an increase in fertiliser feedstock price by more than 236 per cent, raising it from Rs300 per mmBtu to over Rs706 per mmBtu. While fuel price increase has also been suggested, however the price impact on urea would be around Rs600 per bag of 50 kg. This means that the new price would be Rs2,600 per bag.
Kuwait hopes to resolve Neutral Zone oil issue with Saudi Arabia by year end
Kuwait's oil minister said on Sunday he hoped Kuwait and Saudi Arabia will resolve the Neutral Zone issue by the end of 2019. The two countries halted output from the jointly-run oilfields — Khafji and Wafra — in the so-called Neutral Zone more than three years ago, cutting some 500,000 barrels per day of heavy crude or 0.5 per cent of global oil supply. Production cuts by the Organisation of the Petroleum Exporting Countries and rising demand from new refineries in Asia for heavy oil have supported Middle East crude prices. “We hope that by the end of the year things will be cleared out and things will go back to normal,” Kuwaiti minister Khaled al-Fadhel told reporters on the sidelines of a conference in Kuwait.
PPL finds gas in Sindh, Balochistan
Pakistan Petroleum Ltd (PPL) announced two discoveries on Monday. A notice to the PSX informed of hydrocarbon discovery in exploratory well, Bitro-I, in Latif Block located in Khairpur District, Sindh, by the Joint Venture Partners of the Latif Exploration Licence. The company holds 33.30pc working interest in the block. The second notice to the exchange related to hydrocarbon discovery in the first exploratory well, Margand X-I, in Margand Block (2866-4) that is operated by the company and holds 100pc interest in it. PPL said that it was the first discovery in the Kalat Plateau.Margand X-1, located in District Kalat in Balochistan, was spud on June 30 and reached a depth of 4,500 meters (measured depth) inside Chiltan Limestone.
ECC reviews tax exemption on cotton seed
The Economic Coordination Committee (ECC) of the Cabinet on Monday asked the Finance Division to review a proposal seeking five per cent sales tax exemption on cotton seed cake. The meeting, chaired by Finance Adviser Dr Hafeez Shaikh, referred the matter to the Finance Division for examination and asked it to submit a report the next ECC meeting. The ECC approved a technical supplementary grant of Rs4.05 billion lapsed during the FY2018-19 under the Sustainable Development Goals Achievement Programme (SAP). The re-allocated funds would be used under the SAP to make specific interventions as per demand of the community across the country in line with the UN Conventions.
Asian shares and U.S. stock futures darted in and out of losses on Tuesday, as the holiday lull offset optimism that a U.S.-China trade deal will boost exports and corporate earnings. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.01%. Blue-chip shares in China .CSI300 rose 0.29% after Premier Li Keqiang said on Monday the government was considering more measures to lower corporate financing costs. Australian shares were unchanged, while Japan's Nikkei stock index .N225 edged 0.02% lower. Sterling traded near a four-week low versus the euro and a three-week trough against the dollar on growing doubts over how Britain will navigate the transition period for its exit from the European Union.
The fertiliser sector has asked the government to reconsider proposed increase in gas prices, maintaining that it would raise urea rates and negatively impact food security of the country. In a letter to the Ministry of Industries, the fertiliser manufacturers said the latest gas price determination by the Oil and Gas Regulatory Authority (Ogra) on Dec 10 suggested an increase in fertiliser feedstock price by more than 236 per cent, raising it from Rs300 per mmBtu to over Rs706 per mmBtu. While fuel price increase has also been suggested, however the price impact on urea would be around Rs600 per bag of 50 kg. This means that the new price would be Rs2,600 per bag.
Kuwait's oil minister said on Sunday he hoped Kuwait and Saudi Arabia will resolve the Neutral Zone issue by the end of 2019. The two countries halted output from the jointly-run oilfields — Khafji and Wafra — in the so-called Neutral Zone more than three years ago, cutting some 500,000 barrels per day of heavy crude or 0.5 per cent of global oil supply. Production cuts by the Organisation of the Petroleum Exporting Countries and rising demand from new refineries in Asia for heavy oil have supported Middle East crude prices. “We hope that by the end of the year things will be cleared out and things will go back to normal,” Kuwaiti minister Khaled al-Fadhel told reporters on the sidelines of a conference in Kuwait.
Pakistan Petroleum Ltd (PPL) announced two discoveries on Monday. A notice to the PSX informed of hydrocarbon discovery in exploratory well, Bitro-I, in Latif Block located in Khairpur District, Sindh, by the Joint Venture Partners of the Latif Exploration Licence. The company holds 33.30pc working interest in the block. The second notice to the exchange related to hydrocarbon discovery in the first exploratory well, Margand X-I, in Margand Block (2866-4) that is operated by the company and holds 100pc interest in it. PPL said that it was the first discovery in the Kalat Plateau.Margand X-1, located in District Kalat in Balochistan, was spud on June 30 and reached a depth of 4,500 meters (measured depth) inside Chiltan Limestone.
The Economic Coordination Committee (ECC) of the Cabinet on Monday asked the Finance Division to review a proposal seeking five per cent sales tax exemption on cotton seed cake. The meeting, chaired by Finance Adviser Dr Hafeez Shaikh, referred the matter to the Finance Division for examination and asked it to submit a report the next ECC meeting. The ECC approved a technical supplementary grant of Rs4.05 billion lapsed during the FY2018-19 under the Sustainable Development Goals Achievement Programme (SAP). The re-allocated funds would be used under the SAP to make specific interventions as per demand of the community across the country in line with the UN Conventions.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index have succeed in sliding below its initial supportive region of 40,300 points on daily closing basis after confirmation of its evening shooting star on daily chart. As of now trend seems bearish because daily momentum indicators have changed their direction towards bearish side. On its way towards39,200 point index would find initial supports at 39,800 or 39,500 points where initially a rising trend line and then a horizontal support would try to resist against current bearish pressure. It's recommended to continue selling on strength with strict stop loss at 40,700 points.
In case of bullish spike on intraday basis index would face trong resistance at 40,300 points and it would be considered a retest formation of its resistant region and if it would not succeed in penetration above that region then it would slide further downward but breakout of that region could call for 40,700 points.
In case of bullish spike on intraday basis index would face trong resistance at 40,300 points and it would be considered a retest formation of its resistant region and if it would not succeed in penetration above that region then it would slide further downward but breakout of that region could call for 40,700 points.
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