PSX Daily Market Review - 25th Oct. 2017

Trading volume at PSX floor dropped by 10.07 million shares or 6.56% on DoD basis, whereas, the benchmark KSE100 Index opened at 41483.54, posted a day high of 41483.54 and a day low of 40913.93 during the last trading session. The Session suspended at 41291.68 with a net change of -191.86 and net trading volume of 64.94 million shares. Daily trading volume of KSE100 listed companies increased by 0.88 million shares or 1.38%,DoD basis.
Foreign Investors remained in a net buying position of 1.11 million shares and net value of Foreign Inflow increased by 0.95 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistanis remained in net buying positions of 0.035 and 1.09 million shares.On the other side Local Individuals and Banks remained in net buying positions of 2.25 and 2.03 million shares but Local Companies, Mutual Funds, Brokers and Insurance Companies remained in net selling positions of 0.7, 3.17, 1.04 and 0.86 million shares respectively.

Asian shares edged higher on Wednesday, while U.S. Treasury yields and the dollar got a lift following a report that Republican senators were leaning towards John Taylor to be the next Federal Reserve chief. MSCI’s broadest index of Asia-Pacific shares outside Japan shrugged off early sluggishness and rose 0.2 percent. Japan’s Nikkei stock index was up 0.1 percent at the end of morning trade, off its session highs but on track for an unprecedented 17th straight session of gains after the victory of Prime Minister Shinzo Abe’s coalition in Sunday’s election raised investors’ hopes of continued stimulus that could the yen weak.
US Secretary of State Rex Tillerson on Tuesday underscored the importance of Pakistan for United States and emphasised that Pakistan leadership needs to undertake "certain things" for working together as partners towards the same objective. In his remarks at a meeting with employees and family members of the US Embassy here, he said that the country is very important to the US. "The security, the stability of the country [Pakistan] is very important to us. And many of the solutions to the regional challenges are - have to be found here as well in dealing with the leadership in Pakistan, and so we're here to have further discussions about that", Tillerson's remarks were released to the media by State Department before his crucial meetings with Pakistani leadership upon his arrival on a brief visit to the country.
After resisting for more than two years, the National Electric Power Regulatory Authority (Nepra) on Tuesday approved Rs1.52 per unit average increase in the base tariff for all consumers of ex-Wapda distribution companies (Discos), involving annual additional revenue of Rs115.2 billion. With this, the base tariff for Discos would go up by an average Rs2 per unit including a 48-paisa per unit increase already determined by the regulator last month. The regulator issued 10 separate tariff determinations for respective Discos and forwarded to the government on Tuesday for an advice on increase in tariff for each category depending on the element of subsidy and uniform tariff methodology.
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.
Cement manufacturers have begun receiving notices from the Competition Appellate Tribunal (CAT) regarding their penalty case dating back to 2009, sources told Dawn. Fines of about Rs6-7 billion were imposed on 22 cement companies for alleged cartelisation and price fixing.A high-ranking source from a major cement company said the notices for the resumption of the penalty case started arriving on Oct 18.After the imposition of heavy fines in 2009, many companies moved the court to obtain a stay order against the decision by the Competition Commission of Pakistan (CCP). Some companies also approached the Supreme Court directly.

Today PPL, PSO and TRG may lead the market in the positive direction.

The Benchmark KSE100 Index has bounced back after completing 61.8% correction on the daily chart of its last bullish rally which was expired two days ago after posting a double top on the daily chart. Daily Stochastic has generated a bearish crossover which might add pressure on index but if index closes above 41700 on intraday basis then it might create a hope for bullish on short term basis. For the current trading session index might try to post a spike towards 41700 while supportive regions are standing at 40850 and 40500. Swing trading is recommended for the current trading session.