PSX Daily Market Review - 28th Jan 2019

Trading volume at PSX floor dropped by 89.75 million shares or 36.50% on DoD basis, whereas the benchmark KSE100 index opened at 40,307.01, posted a day high of 40,379.95 and a day low of 40,165.72 points during last trading session while session suspended at 40,264.78 with net change of -24.38 points and net trading volume of 116.77 million shares. Daily trading volume of KSE100 listed companies dropped by 41.99 million shares or 26.45% on DoD basis.
Foreign Investors remained in net buying positions of 3.69 million shares and net value of Foreign Inflow increased by 3.29 million shares. Categorically, Foreign Corporate and Overseas Pakistanis remained in net buying positions of 3.23 and 0.58 million shares but Foreign Individuals investors remained in net selling positions of 0.12 million shares respectively. While on the other side Local Companies, Banks, NBFCs and Insurance Companies remained in net buying positions of 2.74, 0.79, 1.92 and 1.34 million shares respectively but Local Individuals, Mutual Fund and Brokers remained in net selling positions of 8.23, 0.45 and 0.66 million shares respectively.

Asian stocks advance after U.S. government reopens for now
Asian stocks advanced on Monday as Wall Street rallied after a deal was announced to reopen the U.S. government following a prolonged shutdown that had taken a toll on investor sentiment. MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.4 percent. The Shanghai Composite Index rose 0.7 percent and Hong Kong’s Hang Seng was up 0.5 percent.
RLNG shortage led to current power crisis
The use of re-gasified liquefied natural gas (RLNG) for power generation constantly decreased during the first four months of the present government while the use of furnace oil increased.From September to November, the SNGPL had enough RLNG in the system and despite various reminders the off-take by power division for power generation was very low, official source told The Nation. The source on the condition of anonymity said that it was the mistake of the SNGPL and they have failed to order enough fuel for the month of December which resulted in the shortage of around 3,600MW electricity. Historically the RLNG demand increases during December and January and the SNGPL was supposed to meet the demand, but they failed, he added.
Transit trade treaty affecting Pak-Afghan ties: Shinwari
Extra restrictions, imposed by Pakistan on Afghan businessmen have not only affected bilateral trade ties between the two neighbouring countries but also compelled the Afghan importers to seek other alternative markets to meet their needs, a business leader said. For sustainable peace in erstwhile Fata districts, economic improvement is necessary, said former president of Khyber Pakhtunkhwa Chamber of Commerce and Industry and chairman of FBR Tax Committee to Afghanistan Zahidullah Shinwari.
IT exports fetch $540 million in six months: SBP
The Information Technology (IT) and Telecommunication industry of the country has contributed US $ 540 million foreign exchange to national kitty through exports during first two quarters of this fiscal year 2018-2019. The telecommunication, computer and information services managed to export IT and IT-enabled services worth US $ 540 million, seeing an increase of US $ 20 million as compared to exports figures of same period last year, statistics of State Bank of Pakistan (SBP) revealed.
Govt stepping up activities of oil, gas exploration
In a bid to achieve self-sufficiency in the energy sector, the Petroleum Division has devised a strategy to reinvigorate oil and gas exploration activities under which around 41 new blocks are being worked for awarding licences to interested E&P companies. “Currently, these blocks are in different phases of the award and clearance process. Open bidding has already been held for 10 blocks in November last, while 10 more will be awarded by March this year,” official sources told APP. The sources said Division had got security clearance for 38 exploration blocks. Out of which, 10 were in evaluation process for provisional award after the bidding opened on November 26, 2018. “The bidding process over remaining blocks will be initiated shortly,” they said, adding that clearance of three blocks was still awaited.

The Benchmark KSE100 Index had tried to continue its bullish rally during last week but could not succeed in closing above its major resistant region of 40,500 points. As of now this region would react more aggressively against any bullish sentiment and would be supported by 40,730 points to cap bullish sentiment, while index would find supportive regions around 39,860 and 39,500 points. Daily stochastic have changed its direction to bearish side but MAORSI still have not generated bearish crossover therefore it’s expected that mixed trend would witnessed in market during current trading session. It’s recommended to stay cautious while initiating new buying on this level and would be beneficial to post trailing stop loss on long positions.