PSX Daily Market Review - 26th April 2018

Trading volume at PSX floor increased by 26.43 million shares or 17.13% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 45,885.72, posted a day high of 45,942.10 and a day low of 45,681.74 during last trading session. The session suspended at 45,718.34 with net change of -158.36 and net trading volume of 104.64 million shares. Daily trading volume of KSE100 listed companies increased by 20.14 million shares or 23.84% on DoD basis.
Foreign Investors remained in net selling position of 0.37 million shares and net value of Foreign Inflow dropped by 1.16 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in net buying positions of 0.08 and 0.43 million shares but Foreign Corporate Investors remained in net selling positions of 0.87 million shares. While on the other side Local Individuals, Banks and Brokers remained in net selling positions of 11.36, 0.77 and 1.73 million shares but Local Companies, NBFCs, Mutual Funds and Insurance Companies remained in net buying positions of 4.82, 0.3, 5.26 and 1.66 million shares respectively.

Asia stocks rise as U.S. earnings prop up Wall Street, dollar solid
Asian stocks rose on Thursday as robust corporate earnings helped Wall Street quell concerns about the surge in U.S. bond yields, while the dollar hovered near 3-1/2-month highs against a basket of currencies. MSCI’s broadest index of Asia-Pacific shares outside Japan bounced back from three-week lows plumbed the previous day and gained 0.35 percent. South Korea’s KOSPI climbed 1.2 percent, with tech shares buoyed after Samsung Electronics posted a record quarterly profit. Australian stocks edged up 0.2 percent and Japan’s Nikkei rose 0.7 percent. Shanghai bucked the trend and slipped 0.3 percent. The Dow rose 0.25 percent overnight, ending a five-day losing streak, and the S&P 500 gained 0.18 percent on optimism over a spate of upbeat earnings that managed to offset jitters over rising U.S. bond yields.
PM calls for boost in Pak-UAE trade
Prime Minister Shahid Khaqan Abbasi underscored the need for further increasing the trade volume between Pakistan and United Arab Emirates. He was talking to Ambassador of the United Arab Emirates (UAE) Hamad Obaid Ibrahim Salem Al-Zaabi who called on him Wednesday at the Prime Minister’s Office. The Prime Minister underscored the importance Pakistan accords to UAE with significant number of expat Pakistanis playing a vital role in development of UAE and serving as a bridge of brotherly relations. The Prime Minister appreciated UAE’s development and humanitarian assistance provided to Pakistan, particularly in the far-flung areas. He stated that this cooperation is a manifestation of our strong bonds.
Tea imports go up by 9.6pc in 3 quarters
The imports of tea into the country witnessed 9.65pc increase during the first three quarters of the ongoing fiscal year compared to the corresponding period of last year. Pakistan imported tea worth $411.231 million during July-March (2017-18) against the imports of $450.932 million in July-March (2016-17), according to the latest data of PBS. Overall food group imports into the country witnessed increase of 4.51pc during the period under review by growing from $4.526 billion last year to $4.730 billion during the ongoing fiscal year, the data revealed.
KP seeks ten-year income tax exemption for PHCs
The KP govt demanded of the federal government income tax exemption of ten years in the fiscal 2018-19 for Provincial Holding Oil and Gas Companies (PHCs). The federal government is already providing exemptions of 5 years up to lifetime to different foreign and local companies including the Chinese contractors and sub contractors working at Gwadar port, said KP government in a letter. In communication with the federal government, the KP pleaded for 10 years income tax exemption to PHCs and allow the provinces for the imposition of excise duty ED on indigenous crude oil by provincial governments. The KP government has pleaded federal government for income tax exemption of ten years in the upcoming Finance bill to their nascent Provincial Holding Oil and Gas Companies known as (PHCs) which were incorporated pursuant to the Petroleum Policy 2012.
CCP imposes penalty on Reliance Paints
The Competition Commission of Pakistan (CCP) has imposed a penalty of Rs 5 million on Reliance Paints Pakistan for fixing a minimum resale price of its products and making its dealers adhere to a price fixing agreement, conduct that is a violation of Section 4 of the Competition Act, 2010. Akzo Nobel Pakistan Ltd. sent a formal complaint to CCP alleging that Reliance Paint was fixing the minimum resale price for its products and also monitoring and penalising the dealers/distributors/retailers for non-compliance with its price directives. The CCP's enquiry found that Reliance Paints was in an agreement with its dealers to maintain the resale price through a price control list. The company would cancel the supply of its products and even fine the dealers if they did not sell products at prescribed prices.

The Benchmark KSE100 Index have bounced back after posting a double bottom on a horizontal supportive region on daily chart and have succeeded in closing above its supportive trend line again during  second last trading session. But trend is still not changed to bullish because index still need to close above its two major resistance levels of 46,096 and 46,370 points for a complete shift in its trend. Daily momentum is trying to convert itself to bullish but hourly and weekly momentum indicators are not supporting bullish stance till now. It’s expected that index may take a spike towards 46,096 and 46,370 points today but it needs to close above these regions to maintain its bullish momentum. For current trading session index have supportive regions around 45,200 and 44,900 points while resistant regions are standing at 46,096 and 46,370 points because these both regions are falling at 50 and 61.8 percent correction levels of last bearish rally. As of now index have bounced back from its 38% correction and closed again at a very critical point. Its recommended to sell on strength with strict stop loss.