PSX Daily Market Review - 27th Feb 2019

Trading volume at PSX floor increased by 93.82 million shares or 137.82% on DoD basis, whereas the benchmark KSE100 index opened at 39,421.88, posted a day high of 39,421.88 and a day low of 38,726.73 points during last trading session while session suspended at 38,821.67 with net change of -785.12 points and net trading volume of 104.83 million shares. Daily trading volume of KSE100 listed companies increased by 60.63 million shares or 137.20% on DoD basis.
Foreign Investors remained in net buying positions of 0.16 million shares and net value of Foreign Inflow increased by 1.56 million US Dollars. Categorically, Foreign Corporate remained in net selling positions of 0.52 million shares but Foreign Individuals and Overseas Pakistani Investors remained in net buying positions of 0.02 and 0.66 million shares respectively. While on the other side Local Companies, Banks, NBFCs, Mutual Fund, Brokers and Insurance Companies remained in net buying positions of 1.76, 3.12, 0.14, 0.13, 1.64 and 11.17 million shares but Local Individuals remained in net selling positions of 19.33 million shares respectively.

Asia shares tick up, dollar near three-week low after Powell comments
Asian shares edged higher on Wednesday and the dollar fell to a three-week low after Federal Reserve Chairman Jerome Powell reinforced the U.S. central bank’s recent shift toward a more “patient” approach on policy in the face of a slowing economy. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1 percent in early trade, not far from its five-month high marked on Monday. Japan’s Nikkei share average gained 0.4 percent, while Australian stocks rose 0.3 percent. The Fed is in “no rush to make a judgment” about further changes to interest rates, Powell told U.S. lawmakers on Tuesday as he spelled out the central bank’s approach to an economy that is likely slowing.
ADB gives $75m loan to upgrade KP road
Pakistan and the Asian Development Bank (ADB) on Tuesday signed a $75 million loan agreement to widen and upgrade a road in Khyber Pakhtunkhwa. The Manila-based lender has given additional financing of $75 million to widen and upgrade 42 kilometers (km) of the busy Mardan–Swabi road in the Khyber Pakhtunkhwa province in Pakistan. The loan agreements were signed by ADB Country Director for Pakistan Ms. Xiaohong Yang and Secretary of the Economic Affairs Division Mr. Noor Ahmed at a ceremony in Islamabad. Secretary of the Communications and Work Department Mr. Shahab Khattak represented Pakhtunkhwa Highway Authority and the Government of Khyber Pakhtunkhwa province.
PSC decides to increase purchase targets upto 56pc
A 56 percent increase was decided in purchase targets during a high level meeting of Punjab Seed Corporation (PSC) on Tuesday. The meeting was held under the chair of PSC Managing Director Waheed Akhtar Ansari. Director General Federal Seed Certification Masood Qamar Qureshi, Director Procurement Malik Imtiaz, Director Administration Riffat Javed and agricultural scientists including Dr Manzoor Munj, Dr Sagheer Ahmed, Dr Saleem, Dr Arshad, and Dr Zahid Mehmood attended the meeting.
Provinces submit 100 projects to Chinese experts for grants under CPEC
Provinces have submitted around 100 projects to the Chinese experts to secure grant for the socioeconomic development under China-Pakistan Economic Corridor (CPEC). The provinces have submitted their recommendations to 13 Chinese delegates who are currently visiting Pakistan. The Chinese delegation is headed by Du Zhenli, comprising of experts from socioeconomic development field.
GDP growth to remain at 4.2pc, NA body told
Minister of State for Revenue Hammad Azhar on Tuesday said that Pakistan’s GDP growth would remain at 4.2 percent during ongoing fiscal year as against revised growth of 5.2 percent in the last year. He briefed the National Assembly Standing Committee on Finance and Revenue on the current situation of economy in the country. He said that numerous economic challenges were faced at the start of current fiscal year, which was required adjustment to correct the imbalances in the economy.

The Benchmark KSE100 Index is facing pressure after confirmation of an evening shooting star on weekly chart and this bearish momentum would prevail towards 39,200 and 38,700 points if index would succeed in sliding below 39,500 points on daily chart. As of now index would try to find support from a rising trend line which falls at 39,550 points and if index would succeed in maintaining above this region then a daily double bottom also would be formatted, index have closed at a very critical point and if it would succeed in opening with a negative gap below 39,550 points then an intraday bearish rally would put pressure on index and it would be pushed towards 39,266 points. For intraday trading it’s recommended to start buying on dip with strict stop loss of 39,200 points while for short term trading it’s recommended to post stop loss at 38,700 points. On flip side index would face strong resistances at 40,150 and 40,500 points and index would remain under pressure until it would succeed in closing above 40,500 points on daily basis.