Previous Session Recap
Trading volume at PSX floor increased by 15.96 million shares or 17.97% on DoD basis, whereas the benchmark KSE100 index opened at 31,829.24, posted a day high of 31,867.79 and a day low of 31,472.02 points during last trading session while session suspended at 31,565.21 points with net change of -264.03 points and net trading volume of 75.01 million shares. Daily trading volume of KSE100 listed companies increased by 4.45 million shares or 6.31% on DoD basis.
Foreign Investors remained in net selling positions of 7.1 million shares and net value of Foreign Inflow dropped by 2.6 million US Dollars. Categorically, Foreign Individual & Corporate investors remained in net selling positions of 0.06 and 8.18 million shares but Overseas Pakistanis remained in net long positions of 1.14 million shares. While on the other side Local Individuals, NBFCs, Brokers and Insurance Companies remained in net long positions of 4.6, 0.31, 12.75 and 0.76 million shares respectively but Local Companies, Banks and Mutual Funds remained in net selling positions of 2.26, 8.54 and 0.51 million shares respectively.
Analytical Review
Asian stocks gain as Trump says China trade deal could be 'soon'
Asian stocks rose on Thursday as hopes the United States and China may soon end their year-long trade war boosted demand for riskier assets while worries about a U.S. presidential impeachment bid ebbed. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.13%. Japan’s Nikkei rose 0.40%. Chinese blue-chip shares advanced 0.20%. The optimism over trade pushed market concerns about U.S. political risks into the background, a day after Democrat lawmakers said they will open an impeachment inquiry into President Donald Trump’s dealings with his Ukraine counterpart. Lifting investor mood, Trump said a deal to end a nearly 15-month trade war with China “could happen sooner” that people think, which would remove a huge shadow over the global economic outlook.
CDWP approves seven projects worth Rs26 billion
Central Development Working Party (CDWP) on Wednesday approved seven projects worth Rs26 billion. Central Development Working Party (CDWP) which met here with Deputy Chairman Planning Commission Mohammad Jehanzeb Khan in chair has approved five projects worth Rs11 billion and recommended two projects worth Rs25 billion to ECNEC for consideration. Secretary Planning Zafar Hasan, senior officials from federal and provincial governments were also present in the meeting. Projects related to Energy, Industries & Commerce, Physical Planning & Housing, Transport & Communications and Education were presented in the meeting.
Provinces expected to face 15-20pc water shortage: Irsa
The technical committee of IRSA Wednesday anticipated the availability of 34 MAF water for the upcoming Rabi season and the provinces are likely to face 15 to 20 percent shortage. The meeting of the technical committee of the Indus River System Authority (IRSA) was held here to determine the water availability and shortages for the upcoming Rabi season. The meeting was presided over by IRSA Director Operation, Khalid Rana and was attended by the representatives of provinces and WAPDA.
Inflation to surge to 12pc, warns ADB
The Asian Development Bank (ADB) has warned that inflation rate would further accelerate to 12 percent in ongoing fiscal year (FY2020) because of a planned hike in domestic utility prices, taxes introduced in budget and lagged impact of currency depreciation. “Inflation remained elevated at the start of FY2020 at 9.4% in July and August. It is projected to accelerate further to average 12.0% in FY2020,” the ADB stated in latest report, ‘Asian Development Outlook Update (ADOU) 2019’. It further stated that pressure from inflationary expectations can be relieved by the government’s commitment to refrain from directly financing the budget deficit by borrowing from the central bank as monetary policy continues to tighten.
Nepra reserves decision on recovering Rs93 billion from power consumers
The National Electric Power Regulatory Authority (Nepra) on Wednesday reserved its verdict on a petitions of ex-Wapda Discos to recover around Rs93 billion from power consumers on account of quarterly adjustments, distribution margin indexation, inflation and exchange rate. NEPRA has conducted public hearing on the petitions of the power division, central power purchasing agency (CPPA) and some distribution companies for their common request to pass on about Rs93 billion impact of quarterly adjustments for the fiscal 2018-19, annual adjustment on prior period cost and distribution margin indexation with inflation & exchange rate. The public hearing was presided over by NEPRA Chairman, Taufeeq Farooqi, the regulator heard the arguments of all the petitioners.
Asian stocks rose on Thursday as hopes the United States and China may soon end their year-long trade war boosted demand for riskier assets while worries about a U.S. presidential impeachment bid ebbed. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.13%. Japan’s Nikkei rose 0.40%. Chinese blue-chip shares advanced 0.20%. The optimism over trade pushed market concerns about U.S. political risks into the background, a day after Democrat lawmakers said they will open an impeachment inquiry into President Donald Trump’s dealings with his Ukraine counterpart. Lifting investor mood, Trump said a deal to end a nearly 15-month trade war with China “could happen sooner” that people think, which would remove a huge shadow over the global economic outlook.
Central Development Working Party (CDWP) on Wednesday approved seven projects worth Rs26 billion. Central Development Working Party (CDWP) which met here with Deputy Chairman Planning Commission Mohammad Jehanzeb Khan in chair has approved five projects worth Rs11 billion and recommended two projects worth Rs25 billion to ECNEC for consideration. Secretary Planning Zafar Hasan, senior officials from federal and provincial governments were also present in the meeting. Projects related to Energy, Industries & Commerce, Physical Planning & Housing, Transport & Communications and Education were presented in the meeting.
The technical committee of IRSA Wednesday anticipated the availability of 34 MAF water for the upcoming Rabi season and the provinces are likely to face 15 to 20 percent shortage. The meeting of the technical committee of the Indus River System Authority (IRSA) was held here to determine the water availability and shortages for the upcoming Rabi season. The meeting was presided over by IRSA Director Operation, Khalid Rana and was attended by the representatives of provinces and WAPDA.
The Asian Development Bank (ADB) has warned that inflation rate would further accelerate to 12 percent in ongoing fiscal year (FY2020) because of a planned hike in domestic utility prices, taxes introduced in budget and lagged impact of currency depreciation. “Inflation remained elevated at the start of FY2020 at 9.4% in July and August. It is projected to accelerate further to average 12.0% in FY2020,” the ADB stated in latest report, ‘Asian Development Outlook Update (ADOU) 2019’. It further stated that pressure from inflationary expectations can be relieved by the government’s commitment to refrain from directly financing the budget deficit by borrowing from the central bank as monetary policy continues to tighten.
The National Electric Power Regulatory Authority (Nepra) on Wednesday reserved its verdict on a petitions of ex-Wapda Discos to recover around Rs93 billion from power consumers on account of quarterly adjustments, distribution margin indexation, inflation and exchange rate. NEPRA has conducted public hearing on the petitions of the power division, central power purchasing agency (CPPA) and some distribution companies for their common request to pass on about Rs93 billion impact of quarterly adjustments for the fiscal 2018-19, annual adjustment on prior period cost and distribution margin indexation with inflation & exchange rate. The public hearing was presided over by NEPRA Chairman, Taufeeq Farooqi, the regulator heard the arguments of all the petitioners.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index have dropped after posting a double top on daily chart and getting resistance from a horizontal resistant region. As of now it's expected that index would try to continue its bearish momentum if it would succeed in sliding below 31,460 points on hourly closing basis and sliding below 31,460 points would call for 31,200 & 31,000 points. Therefore it's recommended to stay cautious and start selling on strength with strict stop loss of 31,860. While on flipside penetration of 31,860 points in upward direction would call for 32,100 and 32,300 points. Index would remain bearish until it would succeed in closing above 32,500 points but a range bound situation would be witnessed between 30,700 & 32,200 points in coming days if index would not succeed in sliding below 30,700 points till this weekly closing.
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