PSX Daily Market Review - 26th June 2018

Trading volume at PSX floor dropped by 12.32 million shares or 6.88% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 41,642.41, posted a day high of 41,841.71 and a day low of 40,903.68 during last trading session. The session suspended at 40,978.23 with net change of -659.15 and net trading volume of 107.45 million shares. Daily trading volume of KSE100 listed companies dropped by 13.07 million shares or 10.85% on DoD basis.
Foreign Investors remained in net buying position of 10.34 million shares and net value of Foreign Inflow increased by 2.02 million US Dollars. Categorically, Foreign Individual and Overseas Pakistanis remained in net selling positions of 0.16 and 0.79 million shares but Foreign Corporate investors remained in net buying positions of 11.29 million shares. While on the other side Local Individuals, Local Companies, Mutual Fund and Brokers remained in net selling positions of 2.34, 0.62, 12.56 and 8.61 million shares but Banks and Insurance Companies remained in net buying positions of 4.53 and 8.21 million shares respectively.

Asia stocks extend global slide on intensifying trade row, dollar shaky
Global stocks extended a sell-off on Tuesday as mounting trade tensions between the United States and other major economies continued to steer investors away from riskier assets, lifting safe-haven U.S. Treasuries and keeping the dollar on the defensive. Equities in Asia took their cues from Wall Street, where the S&P 500 and Nasdaq suffered their steepest losses in more than two months overnight. U.S. technology shares were particularly hard hit. Chipmakers which derive much of their revenue from China took a battering, following a report on Monday that the U.S. Treasury Department was drafting curbs that would block companies with at least 25 percent Chinese ownership from buying U.S. tech firms.
660MW Thar coal based IPP achieves financial closing
The financial closing for 660MW Lucky Electric Coal Power Project based on Thar coal was achieved on Monday. The financial closing documents for the 660MW power project, another Thar coal based IPP, were formally signed by Shah Jahan Mirza, managing director PPIB, and I H Haqqi, chief executive officer of M/s Lucky Electric Coal Power Project. The signing ceremony was witnessed by caretaker Minister for Power, Ministry of Energy, Barrister Syed Ali Zafar. The minister said, “In order to improve power supply in the country to make it more robust and reliable, and reduce dependence on imported fuels, projects based on indigenous Thar coal assume further importance from energy security as well as economic perspective”, advising PPIB to further exploit the Thar coal potential for power generation. He also appreciated PPIB’s efforts of successful inducting 37 power projects totaling 15,500MW capacity, and with an investment portfolio of around $17 billion, which are providing reliable electricity to the national grid. PPIB with its proven track record has achieved yet another major milestone with the financial closing of another Thar coal based IPP after 660MW Engro Powergen.
Stagnant rainwater dangerous for cotton crop
Stagnant rainwater is dangerous for cotton crop and therefore, farmers should immediately drain out rainwater from fields. According to a spokesman for Agriculture Department, rainwater has a salutary impact on rice, cotton and fodder crops, but it is very dangerous for cotton crop if it remains stagnant in cotton field for more than 24 hours. If rainwater remains stagnant in the cotton field for over 48 hours, it causes death of cotton plants, he said and advised farmers to immediately drain out the rainwater from cotton fields. Meanwhile, Punjab Agriculture Department has advised fruit growers to ensure proper care of fruit plants during the hot weather to get good quality fruit.
Govt plans SBP help to cut wheat buying loan rate
Punjab Caretaker Minister for Agriculture, Food, Livestock and Planning and Development Sardar Tanvir Ilyas said that government would contact State Bank of Pakistan (SBP) with a formal request to reduce the interest rate on the loan taken for procurement of wheat from the farmers. He said government had obtained a total of Rs435 billion loan including Punjab’s share of Rs180 billion on interest rate of 6 percent and government has also decided to contact SBP to get reduction in interest rate by 2.5 percent. He said the caretaker government is fully prepared to provide a healthy atmosphere for holding free and fair elections following the instructions of Election Commission of Pakistan. Sardar Tanvir expressed these views during an interview with The Nation here on Monday. He said government got Rs435 billion loan for purchasing wheat from farmers and it has been decided to approach the SBP to reduce the interest rate by 2.5 percent.
PSCA system assisting LEAs in preventing crime, post-event probes
Security is not a static nor a standalone concept. Over the years, sectoral classification of security like social security, economic security and environmental security is rampant and a combination of all is packaged into national security. However, there is no consensus on precise and practical definition of national security and what it entails. It depends upon the perspective and the purpose behind such classification and at times purpose is to confuse the discussion rather than reaching at a practical end point. With innovations in technology, each sector or combinations thereof, is leading to integrated security. The need to define this concept is essential because changing routine life in a modern urban society cannot be regulated in silos even within security elements. Integrated security, I will define, is essentially a concept of operations which connects and combines multiple security related services with the participation of specialised units of that sector and related stakeholders for day to day business or for special events.

The Benchmark KSE100 Index is trying to find some ground at crossover of a descending trend line and a horizontal supportive region, but momentum indicators are still in bearish mode on daily and weekly chart. On hourly chart Stochastic and MAORSI are try to pull back and if it would succeed then index would try to take a spike on intraday basis. Index is standing at an edge therefore its recommended to initiate new buying on dip with strict stop loss of 40,500 or 40,114 points to cash the expected correction of last four trading session’s bearish rally. If reversed from 40,500 or 40,114 points then index would face initial resistances at 41,530 and 42,310 points and it would be recommended to offload new buying at these regions gradually.