PSX Daily Market Review - 25th June 2018

Trading volume at PSX floor dropped by 62.71 million shares or 25.95% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 42,336.83, posted a day high of 42,499.86 and a day low of 41,561.76 during last trading session. The session suspended at 41,637.38 with net change of -721.23 and net trading volume of 120.52 million shares. Daily trading volume of KSE100 listed companies dropped by 33.20 million shares or 21.60% on DoD basis.
Foreign Investors remained in net selling position of 9.39 million shares and net value of Foreign Inflow dropped by 9.96 million US Dollars. Categorically, Foreign Individual and Overseas Pakistanis remained in net buying positions of 0.01 and 3.28 million shares but Foreign Corporate investors remained in net selling positions of 12.67 million shares. While on the other side Local Individuals, NBFCs, Mutual Fund, Brokers and Insurance Companies remained in net buying positions of 11.28, 1.30, 1.81, 1.62 and 3.77 million shares but Local Companies and Banks remained in net selling positions of 2.47 and 6.37 million shares respectively.

Asian shares dogged by trade worries, oil keeps gains
Asian shares got the week off to a cautious start on Monday amid lingering concerns about escalating trade frictions while U.S. oil prices maintained hefty gains made after major oil producers had agreed on a modest increase in production. S&P500 mini futures ESc1 fell as much as 0.5 percent in early trade while MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2 percent. Japan's Nikkei .N225 lost 0.4 percent. The falls were triggered by a report from Wall Street Journal that U.S. President Donald Trump plans to bar many Chinese companies from investing in U.S. technology firms and block additional technology exports to China.
Furniture industry seeks tax relief till 2025
Pakistan Furniture Council (PFC) Sunday urged the federal government to declare furniture industry, a tax free sector till 2025 as this could give a major boost to furniture exports in the country besides making furniture industry risk free and generating new jobs and stimulating local business simultaneously. Chairing a meeting of board of directors here at PFC office, its chief executive Mian Kashif Ashfaq asked the furniture exporters to focus on export of non-traditional products and explore the new markets, said a press release issued here Sunday. He urged the government to introduce a skill development programme for the export-oriented furniture industry with a view to promote the country's value added sector. "I believe that the tax exempted furniture sector in Pakistan will enliven the economy in general. New jobs will be created and production levels will increase, making economy actors happy. We have already seen the signs of a rebound in the economy," he said.
Rice worth $1.8b exported in 11 months
The rice exports from the country during 11 months of current financial year registered 29.15 percent growth as compared the exports of corresponding period of last year as about 3.842 million metric tons of rice worth $1.889 billion exported. The exports of above mentioned commodity was recorded at 3.889 million metric tons valuing $1.463 billion during same period of last year, according the data of Pakistan Bureau of Statistics. During the period from July-May, 2017-18, 461,472 metric tons of basmati rice worth $478.853 million were exported as against the exports of 406,824 metric tons worth $385.746 of same period last year.
New govt to face Rs250b financial burden
After a lapse of two and a half years National Electric Power Regulatory New elected government would face a financial burden of around Rs250 billion despite the fact that partial payments were made under Rs180 billion Prime Minister Incentive Package for textile exports and around Rs150 billion recent extension. The outgoing government in its last days approved additional three year package of around Rs50 billion for providing cash support and slashing down electricity tariff for boosting the country's exports during next three years, in addition to Rs180 billion Prime Minister Incentive Package for export sector. Out of Rs180 billion Rs20 billion were for non textile, while Rs40 billion were allocated for revenue loss, and remaining Rs120 billion were for two and half years.
Rs500m released for Burhan, Haveilian Motorway
The Government has released only Rs 500 million for Burhan-Havelian section of Hazara Motorway under Public Sector Development Programme (PSDP) 2017-18 out of total allocation of Rs 3000 million for current fiscal year. The current fiscal year is ending in a week time and the government has to release Rs 2.5 billion more for the project. According to latest data released by Pakistan Bureau of Statistics (PBS), the total project allocation under federal PSDP was at around Rs 4.5 billion while the remaining cost worth Rs 25.9 billion was to come from foreign sources. The 59 kilometer project, which will connect northern areas with major seaports in the country's South was earlier to be completed by May 2018 at a cost of Rs 30.5 billion, could not be completed on time due to technical issues, is now expected to be completed by end of 2018.

The Benchmark KSE100 Index have formatted an evening star on weekly chart after bouncing back from its 50% correction and right now its heading towards expansion of said correction but before starting that expansion it have supportive region ahead at 41,400 points from its weekly double bottom. If it would succeed in penetration of that region then on intraday basis index could slide towards 41,000 and 40,500 points. In case of confirmation of double bottom a spike of 300-700 points could be witnessed and index could touch 41,920 and then 42,310 in coming days. But momentum would remain bearish until index would close above 43,000 points. It’s recommended to wait for a reversal confirmation before initiating new buying or strict stop loss of 41,000 would have to be posted on buying if initiated near 41,400 points. For current trading session higher volatility could be witnessed at PSX therefore its recommended to trade very cautiously.