PSX Daily Market Review - 27th Nov. 2017

Trading volume at PSX floor increased by 4.49 million shares or 4.41% on DoD basis, whereas, the benchmark KSE100 Index opened at 40276.63, posted a day high of 40368.35 and a day low of 40082.70 during last trading session. The session suspended at 40248.41 with net change of -17.8 and net trading volume of 61.54 million shares. Daily trading volume of KSE100 listed companies increased by 11.56 million shares or 23.12% on DoD basis.
Foreign Investors remained in net selling of 6.67 million shares and net value of Foreign Inflow dropped by 2.45 million US Dollars. Categorically, Foreign Individual, Corporate and Overseas Pakistani Investors remained in net selling position of 0.05, 2.43 and 4.2 million shares respectively. While on the other side Local Individuals, Banks and Insurance Companies remained in net selling position of 3.57, 0.69 and 3.4 million shares but Local Companies, Mutual Funds and Brokers remained in net buying position of 1.27, 10.56 and 2.43 million shares respectively.

Asian stocks gave back earlier modest gains and fell back from a decade high on Monday, weighed by weakness in the Chinese and South Korean markets, while the euro reached a two-month top against the dollar. MSCI’s broadest index of Asia-Pacific shares outside Japan rose early in the session on Friday’s Wall Street gains but was last down 0.65 percent. The index rose to its highest since 2007 on Thursday with as equity markets have enjoyed strong support this year thanks to corporate earnings rising on the back of an improving global economy. South Korea’s KOSPI fell 1.3 percent as tech shares slumped following an analyst’s report suggesting the memory chip “super cycle” would soon fade, led lower by Samsung Electronics. [.KS]
The production of jeeps and cars surged by 31.37 percent during the first quarter of the current fiscal year against the output of the corresponding period of last year. As many as 57,642 jeeps and cars were manufactured during July-September (2017-18) against the output of 43,878 units during July-September (2016-17), according to the data of Pakistan Bureau of Statistics (PBS). The production of light commercial vehicles (LCVs) also increased by 2.28 percent by growing from the output of 7,018 units last year to 7,178 units during the current fiscal year while the output of motorcycles surged by 24.78 percent by growing from 555,952 motorcycle units last year to 693,709 units in the ongoing year. The production of trucks during the period also increased by 36.37 percent, from 1,798 units to 2,452 units while the output of tractors increased by 115.81 percent, from 7,237 to 7,237 units.
Federal Law Minister Zahid Hamid has tendered his resignation in the aftermath of Saturday’s bot­ched operation against protesters at Faizabad interchange and successful negotiations with the protesters, official sources and state broadcaster PTV say. The minister's resignation was the chief demand of the agitating parties, who had staged a weeks-long sit-in in the capital to press the government for his removal.
The government is seeking a $400 million loan from the World Bank to implement Public Finance Management Strategy (PMS) 2018-27 to bring improvement in procurement systems and accountability in service delivery for the health and education sectors. A World Bank document says that the current Public Finance Management (PFM) limits the impact of ongoing health and education operations through inefficient and ineffective management of funds, lack of transparency which can undermine accountability, and coordination challenges between federal and provincial governments.
Exports of non-textile products rebounded and posted a growth of 13.6 per cent during the first four months (July-October) of the current fiscal year from a year ago. The export proceeds from these products surged to $2.66 billion between July-October from $2.34bn over the corresponding period of last year, suggested data compiled by Pakistan Bureau of Statistics. The export proceeds from the sectors were falling persistently since July 2014. The rebound in export proceeds apparently is due to the support package the government has extended to non-textile sector under the prime minister exports enhancement package. In the export package, the commerce ministry has separately announced additional incentives for non-textile products.
Today ANL, ATRL and PSO may lead the market in the positive direction.

The Benchmark KSE100 Index has closed above its supportive region of 40135 points after penetrating that region in bearish direction during last trading session. For current trading session index have a supportive region around 39860. Crossover of a horizontal support and a trend line is taking place at 39860 which would try to push index in positive direction while resistant regions for current trading session are standing at 40881. Its recommended to adopt swing trading unless until index give a clear breakout of either side.