PSX Daily Market Review - 28th July 2017

Foreign Investors remain in net buying of 2.94 million shares and net value of Foreign Inflow increased by 2.52 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistnai investors remain in net buying of 2.7 and 0.24 million shares. While on the other side Local Individuals and Banks remain in net buying of 5.16 and 0.41 million shares but Local Companies, Mutual Funds and Brokers remain in net selling of 0.16, 1.86 and 1.75 million shares respectively.

Asian stock markets sagged on Friday after U.S. tech shares retreated from recent rallies, though optimism about U.S. corporate earnings and the global economy underpinned overall sentiment. MSCI broadest index of Asia-Pacific shares outside Japan fell 0.8 percent but was still on track for a 0.4 percent weekly gain, with Samsung Electric, largest company of Asia by market capitalization, dropping 3.5 percent. Japanese Nikkei shed 0.4 percent. On Wall Street, the Dow industrials set a record closing high, helped by a 7.7 percent jump in Verizon, following the top U.S. wireless carrier quarterly earnings.
The National Electric Power Regulatory Authority (Nepra) on Thursday announced a fresh upfront tariff for Thar coal power generation project and set an upfront tariff of 7.23 cents per unit for wet-cooling based double units on foreign financing and 7.32 cents per unit on local financing. Similarly, Nerpa also set 7.223 cents per unit and 7.31 cents per unit for single units on air-cooling technology with foreign financing and local funding, respectively. For double unit air-cooling technology, the 30-year tariff was fixed at 7.132 cents per unit and 7.228 cents per unit through foreign financing and local financing, respectively.
The Senate Standing Committee on Finance and Revenue on Thursday refused to take briefing from State Bank of Pakistan (SBP) Governor Tariq Bajwa on recent rupee depreciation against US dollar. The committee, which met under the chair of Senator Saleem Mandviwalla, has demanded that SBP Deputy Governor Riaz Riazuddin should brief the committee on recent rupee depreciation against US dollar. Riaz was the acting governor when dollar’s value sharply increased by Rs3.12 in a single day.
After delay of almost one year, National Electric Power Regulatory Authority (Nepra) on Thursday imposed a fine of Rs9 million on two distribution companies including Hesco and Lesco. Nepra has imposed a fine of Rs5 million on Hesco and Rs4 million on Lesco under NEPRA Fine Rules due to non-compliance of Performance Standards, Distribution Code, Distribution license, NEPRA Act and Rules and Regulations particularly with respect to failure to restore the power supply within prescribed time, failure to provide proper voltage level (poor quality of supply), failure to reduce the overloading of power transformers, failure to utilise the amounts/funds and failure to provide correct information regarding interruptions, duration of interruptions and number of complaints, said Nepra spokesperson.

The Market is expected to remain volatile today. We advise Traders to exercise caution. Buying on dips and booking gains on strength is recommended.

The Bench Mark KSE100 Index is caged in a triangle on daily chart and its getting resistance from crossover of resistant trend line of said channel with a horizontal resistance. For Current trading session index have supportive region around 44300 points from where it can be bounced back. For current trading session buying around 44500 with strict stop loss of 44300 or 43850 points is recommended.

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