PSX Daily Market Review - 24th Oct. 2017

Trading volume at PSX floor decreased by 107.77 million shares or 41.25%,DoD basis, whereas, the benchmark KSE100 Index opened at 42148.54, posted a day high of 42161.80 and a day low of 41414.12 during the last trading session. The session suspended at 41483.54 with a net change of -603.45 and net trading volume of 261.22 million shares. Daily trading volume of KSE100 listed companies dropped by 107.77 million shares or -1.44%,DoD basis.
Foreign Investors remained in a net selling position of 2.627 million shares .Categorically, Foreign Individuals and Foreign Corporates remained in net selling positions of 0.02 and 0.72 million shares but Overeas Pakistanis remained in a net buying position of 3.37 million shares.On the other side Local Individuals,Local Companies,Banks and Insurance Copmanies remained in net buying positions of 21.15, 0.593, 0.56 and 1.30 million shares but NBFC's, Mutual Funds , Brokers and Other Organization remained in net selling positions of 0.187, 4.22, 20.87 and 0.44 million shares respectively.

Asian equities were mostly up as investors shrugged off Monday’s declines in the U.S., where a gauge of equity volatility climbed as market participants assessed the recent rally in global stocks before a slew of earnings reports. The dollar was steady while the yen hovered near a three-month low. Japan’s Nikkei 225 Stock Average continued its gains after a 15-day rally that lifted it to the highest level since 1996 after the S&P 500 Index and Dow Jones Industrial Average both fell Monday, pulled down by technology and industrial stocks. Shares in Hong Kong were little changed.
National Accountability Bureau (NAB) has frozen assets and properties, both moveable and immoveable, of Finance Minister Ishaq Dar, his family members, dependents and benamidars in a reference filed against him pertaining to accumulation of assets beyond known sources of income.NAB Special Prosecutor Imran Shafiq submitted a report regarding freezing the assets of Dar before the Accountability Court Judge Muhammad Bashir during the hearing of the reference against Dar. The NAB also requested the court to corroborate the decision regarding freezing the assets of Dar and the court issued a notice to the accused finance minister for hearing of the matter. According to NAB officials, NAB Chairman former Justice Javed Iqbal had earlier issued an order to freeze properties and assets of Dar. Under the law, the NAB chairman is fully authorized to issue such orders but it is mandatory for NAB to file application in the light of the order of its chairman in the court for implementation on it.
The federal government on Monday warned the general public not to pay any heed to the rumors about a heavy investment, allegedly made by a Chinese in the real estate business in Gwadar, and asked the investors not to invest in any phone company which might be involved in a massive fraud. In an official statement, the spokesman of Ministry of Planning, Development and Reform cautioned the public at large not to pay heed towards an alleged investment of US $500 million in Gwadar’s real estate business under the name of ‘China Pak Hills’. Apropos news item – “Chinese company invests $500 million in Gwadar residential project” – published in a section of the press, has claimed that China Pak Hills has invested US $500 million in Gwadar’s real estate business. It is to put on record that Gwadar Development Authority (GDA) has not issued any No Objection Certificate (NOC) to a housing project named as ‘China Pak Hills’, said an official handout by China Pakistan Economic Corridor (CPEC) Secretariat at Ministry of Planning, Development and Reform.
National Electric Power Regulatory Authority (Nepra) has approved refund of Rs 2.19 per unit for September 2017 for Discos' consumers to adjust for cheaper fuel prices in the international market. However, K-Electric and agricultural consumers and those domestic users who consume less than 300 units per month will not be eligible for this relief. Following the tariff cuts by the National Electric Power Regulatory Authority (Nepra), consumers will see the fuel adjustment charges reflected in the coming month's power bills. The cut is expected to provide customers relief worth Rs 24 billion. The Central Power Purchasing Agency (CPPA) had earlier requested Nepra to reduce tariff by Rs 0.07 per unit and make adjustments of arrears. On Monday during the monthly public hearing on the price adjustment mechanism, the regulator decided to cut tariffs and refused to make adjustments for the outstanding amount.

The market is expected to remain volatile today, Buying on dips is recommended in the following scripts (ATRL, PPL , STPL  and TRG).

The Benchmark KSE -100 Index has closed below its support level of 41548. Whereas, Stochastic has generated a bearish crossover on the daily chart that may take the index towards 40931. KSE-100 index may take a support on 41339 where it may complete its D wave of Elliot Wave on 1 hour chart and might get a support from 26 MA.