PSX Daily Market Review - 24th Sep 2018

Trading volume at PSX floor dropped by 7.80 million shares or 4.68% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 41,299.73, posted a day high of 41,357.34 and a day low of 41,100.58 during last trading session. The session suspended at 41,320.13 with net change of 82.06 and net trading volume of 95.32 million shares. Daily trading volume of KSE100 listed companies increased by 12.00 million shares or 14.40% on DoD basis.
Foreign Investors remain in net selling positions of 68.20 million shares and net value of Foreign Inflow dropped by 4.18 million US Dollars. Categorically Foreign Individuals and Corporate remained in net selling positions of 0.04 and 69.53 million shares but Overseas Pakistanis investors remained in net buying positions of 1.36 million shares. While on the other side Local Individuals, Local Companies, Brokers and Insurance Companies remained in net buying positions of 65.28, 8.01, 2.91 and 1.48 million shares respectively but Banks, NBFCs and Mutual Fund remained in net selling positions of 0.89, 7.12 and 1.74 million shares.

Asian shares wobble as China halts trade talks with U.S.; oil rallies
Asia shares eased in holiday-thinned trading on Monday and the safe haven yen gained as China canceled upcoming tariff talks with the United States, while oil prices jumped after top producers including Russia ruled out boosting crude output. U.S. stock futures were a touch weaker while MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.3 percent. Australian shares fell 0.25 percent and New Zealand’s benchmark index faltered 0.6 percent. Most of the action was in currencies as financial markets in major Asian centers Japan, China and South Korea were closed for a holiday. Investors were squarely focused on the Sino-U.S. trade war as China added $60 billion of U.S. products to its import tariff list, retaliating against U.S. duties on $200 billion of Chinese goods that come into effect on Monday.
Pakistan, US should rebuild economic relations: FPCCI
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has said that Pakistan’s partnership with China is not against any other country and it does not impede relations and alliances with other countries. Pakistan and the US need to come closer by offering better business incentives to the individuals and companies as both countries need each other, it said. President of the FPCCI Ghazanfar Bilour said this while talking to the businessmen after inking an MoU with Jeff Mark, President Greater New York Chamber of Commerce, for increased economic cooperation at New York Hilton Midtown Manhattan Hotel.
Power sector: Rs 50 billion injection to bring down debt quantum to Rs 546 billion
An amount of Rs 50 billion against power sector''s circular debt may be released on Monday to reduce the debt quantum from Rs 596 billion to Rs 546 billion. Sources said that there is growing pressure from Independent Power Producers (IPPs) to suspend power supply if the payment is not released to them for purchase of fuel to ensure operation of the power plants. They further stated that federal government provides guarantee to the banks for arranging circular debt payment to the power companies. They added that the circular debt is settled through Power Holding Company Limited (PHPL).
OPEC, Russia rebuff Trump's call for boost to oil output
OPEC’s leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, ruled out on Sunday any immediate, additional increase in crude output, effectively rebuffing U.S. President Donald Trump’s calls for action to cool the market. “I do not influence prices,” Saudi Energy Minister Khalid al-Falih told reporters as OPEC and non-OPEC energy ministers gathered in Algiers for a meeting that ended with no formal recommendation for any additional supply boost. Benchmark Brent oil LCOc1 reached $80 a barrel this month, prompting Trump to reiterate on Thursday his demand that the Organization of the Petroleum Exporting Countries lower prices. The price rally mainly stemmed from a decline in oil exports from OPEC member Iran due to fresh US sanctions.
July-August current account deficit widens 10 percent
The country''s current account deficit widened by 10 percent during the first two months of this fiscal year (FY19) compared to corresponding period of last fiscal year (FY18). The State Bank of Pakistan (SBP) Wednesday reported that the county''s current account deficit rose to $2.72 billion in July-August FY19 compared to $2.47 billion in the same period of last fiscal year, showing an increase of $244 million.

The Benchmark KSE100 Index had generated an inverted hammer on daily chart during last trading session before completion of its 50% correction. It’s expected that index would face a strong resistances ahead at 41,557 points and 41,605 points because these both regions fall at 50% correction of last bearish rally and a strong horizontal resistant region respectively. Breakout of 41,605 points on daily chart would call for 41,865 points but if index would not succeed in closing 41,605 points then an expansion of current correction would be witnessed towards 40,660 and 40,360 points in coming days. Its recommended to stay cautious while trading until index close above 41,865 points on daily chart.