PSX Daily Market Review - 26th April 2019

Trading volume at PSX floor dropped by 9.21 million shares or 7.94% on DoD basis, whereas the benchmark KSE100 index opened at 36,520.00, posted a day high of 36,944.63 and a day low of 36,504.25 points during last trading session while session suspended at 36,796.03 with net change of 301.28 points and net trading volume of 84.25 million shares. Daily trading volume of KSE100 listed companies dropped by 8.98 million shares or 9.63% on DoD basis.
Foreign Investors remained in net buying positions of 4.18 million shares and net value of Foreign Inflow increased by 1.60 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani investors remained in net buying positions of 2.61 and 1.58 million shares respectively. While on the other side Local Companies, Banks, NBFCs, Mutual Fund and Insurance Companies remained in net buying positions of 2.52, 1.35, 0.03, 4.64 and 5.06 million shares respectively but Local Individuals and Brokers remained in net selling positions of 6.87 and 3.48 million shares respectively.

Asia shares subdued, dollar pins hopes on U.S. GDP
Asian shares got off to a subdued start on Friday, while the dollar held near two-year highs against the euro on speculation that data later in the day will show the U.S. economy outperforming the rest of the developed world. The euro was off 1 percent for the week at $1.1133 as euro zone economic figures continued to disappoint. Against a basket of currencies, the dollar was 0.8 percent firmer for the week so far at 98.128 having touched its highest since May 2017. The yen proved an outlier by gaining as speculators cut short positions ahead of holidays which will see most Japanese markets shut for six whole trading days. The exceptionally long break has investors concerned there could be another “flash crash” like the one in early January that drove the yen massively higher in a matter of minutes. The dollar was down at 111.51 yen, after shedding 0.5 percent overnight, but was buoyed elsewhere by solid data on U.S. capital goods orders.
CPEC umbrella projects: Pakistan, China likely to sign three agreements
Pakistan and China are likely to sign three agreements related to CPEC umbrella projects, Rashakai Special Economic Zone (SEZ), socio economic development cooperation and agriculture cooperation, on April 28. Agreement for the establishment of Pakistan’s first SEZ at Rashakai, Khyber Pukhtunkhwa will be finalized during the Prime Minister Imran Khan’s ongoing visit to China, official sources told The Nation here Thursday. Federal Minister for Planning, Development & Reforms Makhdoom Khusro Bakhtiar has already announced that Rashakai Special Economic Zone will be inaugurated next month.
ML-I project to create 150,000 jobs: Sheikh Rashid
Minister for Railways Sheikh Rashid Ahmed Thursday said that Mainline-I (ML-I) project from Peshawar to Karachi would create 150,000 job opportunities including 20,000 technical experts in the country. Addressing a press conference here, the minister said that with the completion of ML-I between Pakistan and China, the project would bring revolution not only in Pakistan Railways but also in the country. Sheikh Rashid said that Pakistan and China would sign the preliminary design of ML-1 project during the current visit of Prime Minister Imran Khan to Beijing. Congratulating the nation, the minister said that he has initiated this project in 2006 and now by the grace of Almighty Allah, the project is going towards the agreement between both the countries. “I will try my level best to sign the Mainline-II (ML-II) with the Chinese government during this visit of prime minister that will also create numerous job opportunities,” Sheikh Rashid added.
ADB chief says bank will continue to grant loans to China
The Asian Development Bank (ADB) sees value in continuing to lend to China, its president said on Thursday, in response to calls for the institution to stop granting loans to the world's second-largest economy. ADB President Takehiko Nakao also said the multilateral financial institution's lending to China “is not huge” so it will not crowd out borrowers from poorer countries. “There is merit in lending to China. One we can have influence over such policies like climate change and the environment, which might have a positive impact on developing countries and to the region,” Nakao told reporters. The Japanese government, which is a founding member of the ADB, has urged the Manila-based lender to stop lending to China on the grounds that it is rich enough to “graduate” from aid, the Nikkei has reported.
Global oil market ready for end to Iran crude exports, say US officials
United States' attempts to drive Iranian oil exports down to zero come against the backdrop of a global market that is sufficiently well supplied to avoid price disruptions, senior US officials said on Thursday. “There's roughly a million barrels per day (bpd) of Iranian crude (exports) left, and there is plenty of supply in the market to ease that transition and maintain stable prices,” said Brian Hook, US Special Representative for Iran and Senior Policy Advisor to the Secretary of State, speaking in a call with reporters. The comments came three days after the US demanded importers halt oil purchases from Tehran from May or face punitive action.

MLCF, ENGRO, SEARL, DOL and PSO would try to lead the positive momentum, while EFOODS, SNGP, ISL and NML would remain in laggards.

A volatile trading session was witnessed at PSX floor because the Benchmark KSE100 index have shown some volatile moves during last trading session after completing 50% correction of its last bearish rally but at day end it succeeded in closing with a morning star on daily chart and with this morning star daily momentum indicators also have succeeded in creating bullish crossovers which may lead index towards some positive moves in coming days. As of now it's expected that index would try to find support at 36,460 points while on flipside an intraday resistance is standing at 37,000 points which would try to react as a strong hurdle against current bullish sentiment. It's recommended to stay cautious because chances of formation of a cheat pattern are still intact on daily chart until index would succeed in closing above 37,000 or 37,350 points. It's recommended to post trailing stop loss on existing long positions and add in chunks if index would take a dip. Index have bounced back after completing 50% correction of its previous bearish rally therefore that region would try to push it backward once again and it would need some fresh volume to maintain its bullish sentiment above 37,000 points. Being last trading session of the week current session also have its own significance and closing of current session above 37,100 points would create a third consecutive hammer on weekly chart which would provide strength to short term sentiment and would try to lead index towards 37,700 initially and then towards 39,500 points.