PSX Daily Market Review - 24th Nov. 2017

Trading volume at PSX floor dropped by 55.15 million shares or 35.13% on DoD basis, whereas, the benchmark KSE100 Index opened at 40626.00, posted a day high of 40715.65 and a day low of 40136.86 during last trading session. The session suspended at 40266.21 with net change of -325.67 and net trading volume of 43.66 million shares. Daily trading volume of KSE100 listed companies dropped by 73.92 million shares or 62.87% on DoD basis.
Foreign Investors remained in net selling position of 0.91 million shares and net value of Foreign Inflow dropped by 2.17 million shares. Categorically, Foreign Individual and Overseas Pakistani Investors remained in net buying position of 0.21 and 1.48 million shares but Foreign Corporate Investors remained in net selling position of 2.61 million shares. While on the other side Local Individuals, Companies and Brokers remained in net buying position of 0.62, 1.85 and 1.71 million shares but Local Banks Mutual Funds and Insurance companeis remained in net selling position of 0.08, 3.17 and 0.34 million shares respectively.

Pakistan is facing formidable challenges including poor governance and severe corruption, lack of economic growth, lack of security within the country and on the border to improve its future food security, said Asian Development Bank (ADB). ADB in its latest report "Food insecurity in Asia" states that Pakistan has to overcome these challenges in order to achieve durable societal development outcomes that are fundamental to achieving stable economic growth and in turn to improving its future food security. In the foreseeable future, Pakistan is most likely to continue to be subject to considerable sociopolitical, economic, and environmental volatility. However, deep reforms and thus improvements in governance must first be carried out soon to unleash the country’s growth potential. Without substantial improvements in governance and reduction in corruption, decent economic growth is hard to anticipate and hunger and malnutrition will continue to prevail because of the mal-distribution of resources and the lack of purchasing power among the poor.
The National Electric Power Regulatory Authority (Nepra) has fixed December 5, 2017 to hear reconsideration request filed by Government of Pakistan for Multi-Year Tariff (MYT) of K-Electric determined by Nepra for period effective from July 2016 to June 2023. Section Officer (Tariff) Ministry of Energy (Power Division) in his covering letter has asserted that the Power Division has reviewed the contents of KE''s letter and feels that it is important that the Authority reconsiders its earlier determination to ensure that consumer interest, in terms of continuous and efficient service of delivery, is maintained.
The Council of Common Interests (CCI) which is scheduled to meet on Friday (today) with Prime Minister Shahid Khaqan Abbasi in the chair will deliberate on sugar policy and sugar export after sugar mill owners refused to start crushing without reasonable revision in export rebate, well informed sources in Commerce Ministry told Business Recorder. PSMA delegation, sources said, met Prime Minister on November 21, 2017 and apprised him about a current sugarcane crop, expected production in 2017, current carryover stock and pricing trend in international market besides seeking increase in the amount of rebate to Rs 20 per kg from Rs 10.70 per kg recommended by an inter-ministerial committee headed by Commerce Minister. However, in a subsequent meeting, Secretary Commerce Younus Dagha refused to revise the amount of export rebate which has created a deadlock between millers and the federal government.
The National Electric Power Regulatory Authority (Nepra) Thursday approved a refund of Rs 2.23 per unit to the consumers of power Distribution Companies (Discos) on account of fuel adjustment for October 2017. The decision was taken at a public hearing presided over by Chairman Nepra, Brig. Tariq Saddozai (retired) on a petition filed by Central Power Purchasing Agency (CPPA-G). The cumulative impact of Rs 2.23 per unit reduction in tariff will be Rs 22 billion of which half the amount will be passed on to consumers' whereas Discos will retain half against subsidy being provided to the lifeline consumers. The CPPA had filed a petition requesting a decrease of Rs 2.2051 per unit on account of fuel adjustment. Chairman Nepra observed that gas should be provided to the more efficient power plants and directed Nepra's consultant to officially write to the government to operate power plants with better efficiency. He said that an inquiry is already under progress in Nepra against NPCC for violation of merit order.
Today OGDC and PSO may lead the market in the positive direction.

The Benchmark KSE100 Index has penetrated a resistant trend line on hourly chart and has retested that region again as support during the last trading session. As of right now index have a resistance ahead at 40637 therefore it is necessary for index to open with a positive gap above that region to maintain it is 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.