PSX Daily Market Review - 28th Feb. 2018

Trading volume at PSX floor dropped by 22.73 million shares or 13.56% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 42900.85, posted a day high of 43116.82 and a day low of 42606.88 during last trading session. The session suspended at 42994.96 with net change of 83.94 and net trading volume of 64.53 million shares. Daily trading volume of KSE100 listed companies increased by 9.4 million shares or 17.04% on DoD basis.
Foreign Investors remained in net buying position of 0.93 million shares but net value of Foreign Inflow dropped by 0.1 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained inn net buying postions of 0.14 and 4.29 million shares but Foreign Corporate Investors remained in net selling postion of 3.49 million shares. While on the other side Local Individuals, Companies, Banks, NBFCs and Insurance Companies remained in net buying positions of 5.48, 8.92, 0.16, 0.26 and 0.05 million shares respectively but Mutual Funds and Brokers remained in net selling positions of 5.93 and 10.36 million shares.

Asian shares extended losses on Wednesday and bonds were sold off as weak factory data from China revived worries about global economic growth amid fears of faster rate rises in the United States.MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.7 percent, on track for a second straight day of losses.It is down more than 4.5 percent in February after global equity markets were mauled at the start of the month by worries U.S. inflation is picking up.Japan’s Nikkei stumbled 0.4 percent on a slightly firmer yen, while S&P futures slipped 0.3 percent.China’s blue-chip CSI300 skidded 0.8 percent while Shanghai’s SSE Composite and Hong Kong’s Hang Seng index each declined more than 1 percent.
Saudi Deputy Trade Minister Abdulrahman Alharbi has acknowledged Pakistan as one of the top destinations for making investments.During the first meeting of Pak-Saudi Joint Working Group on Trade and Investment in Riyadh on Monday, both the parties reaffirmed their commitment to strengthen their trade and investment ties in line with the understandings developed during its meeting held in Islamabad last month.The Saudi side appreciated the attractiveness of Pakistan as a preferred destination of investment in view of its macroeconomic indicators, growth projects, strategic location and overall investment regime.The kingdom also expressed its interest in investing in Pakistan in many sectors including petrochemicals, dairy, livestock, mining etc. It was agreed that Saudi Arabia will send a technical team to Pakistan to review the sector specific opportunities and projects.
Oil and Gas Regulatory Authority (Ogra) Tuesday recommended an increase of Rs6.94 per litre in the price of high speed diesel (HSD) and Rs 3.56 in the rate of motor gasoline (petrol) for the month of March 2018.According to a working paper moved to the Ministry of Energy (Petroleum Division) and the Ministry of Finance, Ogra has recommended an increase of up to 8.9 percent in the rates of different petroleum products, it was learnt reliably here.In the working paper, the Oil and Gas Regulatory Authority recommended an increase of Rs 3.56 per litre or 4.2 percent in price of petrol and Rs 6.94 per litre or 7.2 percent in the price of high speed diesel. HSD is widely used in transport and agriculture sector and therefore increase in its price would increase the input cost of farmers. Similarly, the regulator also proposed an increase of Rs 6.28 per litre in the price of superior kerosene oil (SKO) and Rs1 per litre in the price of light diesel oil (LDO), which meant a hike of 8.9 percent and 1.6 percent per litre respectively.
Pakistan will have to pay $3 billion to the International Monetary Fund (IMF) before June and for this funds will have to be raised from the international market, Minister of State for Finance Rana Muhammad Afzal Khan said on Tuesday.The figure given by the minister is at odds with what the State Bank says Pakistan owes on its external debt service obligations till end of fiscal year. According to the central bank, the total amount Pakistan will have to pay on its external debt is $2.5bn, and that this amount does not require recourse to any extraordinary measures to raise.Addressing industry leaders and exporters at the Pakistan Hosiery Manufacturers Association (PHMA), the minister said the government plans to bring reforms in the tax system by bringing structural changes.
Pakistan Water and Power Development Authority (WAPDA) achieved yet another landmark towards energy security of the country, as Tarbela 4th Extension Hydropower Project started electricity generation Monday. The first generating unit, put into operation has started providing electricity to the National Grid. To mark the significant development of electricity generation from the first unit, Wapda Chairman Muzammil Hussain visited Tarbela 4th Extension Hydropower Project . Highlighting significance of the project in economic development and social uplift of the country, he said that prime minister will formally inaugurate the project in 2nd week of March. Under the project , three electric power generating units – each of them having capacity of 470 MW – have been installed at the Tunnel 4 of Tarbela Dam. The first unit has started electricity generation. The second unit is scheduled to be commissioned by end of April, while the third unit is schedule to start electricity generation by end of May, this year. It merits a mention that the 1410 MW-Tarbela 4th Extension is a component of least-cost energy generation plan.
Market seems to remain volatile during current trading session therefore its recommended to practice caution.

The Benchmark KSE100 Index is moving in a bearish trend channel on hourly chart and have bounced back after completing 100% expansion of its last 61.8% bearish correction on intraday basis, but it still could not recovered from 61.8% correction of said expansion. As of right now index is capped by a strong horizontal resistances ahead at its 61.8% correction 43140 and 43440 points on hourly chart. If index would not become able to gave a clear breakout of 43140 and 43440 points today then a new bearish rally would be witnessed towards 42590 and 42230 points. Its recommended to practice caution while trading today.