PSX Daily Market Review - 25th Sep 2018

Trading volume at PSX floor dropped by 60.10 million shares or 37.86% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 41,394.97, posted a day high of 41,533.64 and a day low of 40,912.44 during last trading session. The session suspended at 41,004.55 with net change of 315.58 and net trading volume of 54.84 million shares. Daily trading volume of KSE100 listed companies dropped by 40.48 million shares or 42.46% on DoD basis.
Foreign Investors remain in net buying positions of 0.69 million shares and net value of Foreign Inflow dropped by 0.02 million US Dollars. Categorically Foreign Individuals and Corporate remained in net selling positions of 0.02 and 1.17 million shares but Overseas Pakistanis investors remained in net buying positions of 1.88 million shares. While on the other side Local Individuals, Mutual Fund and Insurance Companies remained in net buying positions of 4.16, 3.10 and 1.20 million shares respectively but Local Companies, Banks, NBFCs and Brokers remained in net selling positions of 6.67, 1.02, 0.12 and 1.10 million shares.

Asia stocks slip as U.S.-China trade row revives growth fears; oil elevated
Asia stocks struggled on Tuesday as a fresh round of U.S.-China tariffs and a surge in oil prices to near four-year highs added to worries about risks to global growth. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged down 0.2 percent. But Japan's Nikkei .N225 bucked the trend and edged up nearly 0.2 percent. The Shanghai Composite Index .SSEC dropped 0.5 percent and Australian stocks lost 0.3 percent. Hong Kong markets were closed for a holiday. China and the United States imposed new tariffs on each other’s goods on Monday and neither side looks to be in the mood to compromise, raising the risk of a protracted battle that could chill investment and disrupt global trade.
Fawad seeks Japanese investment in economy, media
Federal Minister for Information and Broadcasting Chaudhry Fawad Hussain Monday said Pakistan highly valued its bilateral relations with Japan and would like Tokyo to invest in the domain of media and information, besides the economy. The minister, in a meeting with Japanese Ambassador Takashi Kurai here, observed that Pakistan and Japan enjoyed strong commercial and trade ties, and the latter had extended generous assistance to Pakistan at crucial times. Fawad said Japan, which had been a role model in regard to economic progress for the world, should come up with independent projects for Pakistan. He said that media could be an effective tool not only in promoting positive image of the country but also countering narrative of extremists and terrorists. He emphasized the need for joint ventures in the realm of films, drama and production as those mediums were vital to understand each others' culture and values
IMF team to visit Pakistan this week
A team of the International Monetary Fund will visit Pakistan this week. The team is expected to hold meetings with Finance Minister Asad Umar. The delegation is expected to be briefed on the economic situation. It will be apprised of the changes in the federal budget, a private television channel reported Monday. The visit can have implications as Pakistan has yet to take a decision over a bailout given its balance-of-payments crisis. “We are in discussion with them [global monetary organisation], but this is not to negotiate for a loan. Our purpose is to do our homework, in case we want to approach them at some stage,” the minister said in an interview with Arab News.
CPEC’s JCC to discuss procurement process, Senate body told
Chairman National Highway Authority Jawad Rafique Malik on Monday revealed that the upcoming Pakistan-China Joint Cooperation Committee meeting would discuss the possibilities to make procurement process for CPEC projects more competitive, adding that the Pakistani side would try to pave a way for indigenous firms to bid for future projects in addition to Chinese companies. He was responding to concerns raised by Senator Nauman Wazir Khattak regarding anomalies in procurement process and agreements signed with Chinese firms in the Senate Standing Committee on Communication, which met here in the seminar room of the Pakistan Institute of Parliamentary Affairs (PIPS) under the chair of Senator Hidayat Ullah.
350 unapproved projects deleted from PSDP
A parliamentary committee was Monday informed that the government has deleted 350 unapproved projects from the PSDP 2018-19 and has reduced the developmental budget portfolio from Rs 800 billion to Rs 675 billion. In the revised PSDP 2018-19, 350 unapproved projects were removed which will save Rs 55 billion to Rs 57 billion, said the Advisor on PSDP of the Ministry of Planning, Development and Reforms while briefing the Senate standing committee here. The Senate Standing Committee on Planning, Development and Reforms that met with Senator Agha Shahzaib Khan Durrani in the chair directed the government to explain before committee the criteria adopted for incorporating adjustments in the projects and deletion of the development projects from the list of Public Sector Development Program (PSDP).

The Benchmark KSE100 Index had bounced back after getting resistance from its 50% correction of last bearish rally and a strong horizontal resistance during last trading session. As of now it is expected that index would try to bounce back before 40,711 or 40,600 points on intraday basis because these region falls on a strong horizontal support and a rising trend line. Momentum indicators on hourly and weekly chart are still bullish while daily momentum is mixed. It is recommended to initiate buying on dip with strict stop loss because if index would succeed in maintaining its supportive regions during current trading session then it would try to penetrate 41,300 points after a breath in of last trading session and new targets on bullish side would be 41,605 and 41,864 points on short term basis.
PSO, DGKC, SNGP, ISL, HBL, POL and EFOODS are standing right at the edge of their respective supports. PSO have supportive region ahead at 322 Rs and downward penetration of that region would change its short term trend but until it’s trading above that region a bounce back can be expected towards 329 and 334. DGKC have generated an evening star on daily chart but these kind of evident formations are usually created for a cheat pattern and it have strong supportive regions ahead at 98.60 till 97.60 therefore a pullback can be witnessed. SNGP and ISL are standing right before there supportive regions of 91.30 and 90.70 Rs respectively and these regions falls on horizontal supportive regions. HBL, POL and EFOODS are being supported by horizontal supportive regions and supportive trend lines but one thing which is common is these three scripts is their daily bullish momentum. HBL, POL and EFOODS have supportive regions at 145, 524 and 84.50 respectively.