PSX Daily Market Review - 28th Sep 2018

Trading volume at PSX floor increased by 22.91 million shares or 18.12% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 40,904.34, posted a day high of 40,971.00 and a day low of 40,387.34 during last trading session. The session suspended at 40,851.80 with net change of -58.11 and net trading volume of 95.30 million shares. Daily trading volume of KSE100 listed companies increased by 18.26 million shares or 23.70% on DoD basis.
Foreign Investors remain in net selling positions of 3.87 million shares and net value of Foreign Inflow dropped by 3.02 million US Dollars. Categorically Foreign Individuals, Corporate and Overseas Pakistanis investors remained in net selling positions of 0.01, 3.02 and 0.83 million shares. While on the other side Local Companies, Banks and Mutual Fund remained in net buying positions of 0.30, 26.42 and 1.77 million shares respectively but Local Individuals, Brokers and Insurance Companies remained in net selling positions of 1.35, 22.02 and 0.25 million shares.

Communication services stocks elevate Wall Street
Wall Street climbed on Thursday, helped by gains in Apple, Alphabet and Facebook, as well as the U.S. Federal Reserve’s confidence in the strength of the economy after it raised rates for the third time this year. Eight out of 11 sectors rose, with the S&P 500 communication services index, recently renamed and reconstituted with Facebook, Google-parent Alphabet and other internet and media stocks, jumping 0.80 percent. Alphabet rose 1.20 percent and Facebook climbed 1.13 percent, both helping lift the S&P 500. Apple rose 2.05 percent after JPMorgan started coverage of the stock with an “overweight” rating, citing the iPhone maker’s quicker-than-expected move to a services business.
IMF team arrives in Pakistan for talks
A delegation of International Monetary Fund (IMF) has arrived in Islamabad for holding Article IV consultations. Pakistan and IMF were scheduled to hold Article IV talks in March this year, which was delayed due to the budget preparations of the previous PML-N government. Later, the caretaker government had also decided not to hold discussions with the Fund and left the matter for the new government. Therefore, the IMF team has arrived to review the economic situation of Pakistan under article IV, which is compulsory for every member country of the Fund. Talks would continue for more than one week.
Nepra imposes Rs5m fine on K-Electric
NEPRA has imposed a fine of Rs 5 million on K-Electric Limited on account of its failure to provide reliable power supply to consumers of Karachi on a non-discriminatory basis. Pursuant to media reports regarding prolonged hours of load shedding by K-Electric during the month of Ramadan in 2017 and direction of Honorable Sindh High Court to NEPRA to ensure compliance with NEPRA’s earlier order dated 25 March 2016 to provide electricity to all consumers on non-discriminatory basis, the Authority constituted a committee to verify facts and implementation of aforementioned order, said a spokesman of NEPRA here.
Advances to private sector maintain steady pace in H1
The banking sector in the country has performed reasonably well as asset base of the banking sector has expanded by 4.7 percent during 1st half of fiscal year 2018-19. Encouragingly, advances to the private sector have been the key contributor in the asset growth with sugar, energy and cement sectors along with individuals (i.e. sole proprietorships) being the key borrowers. Deposits have observed slight deceleration but remained the mainstay of funds for the banks, said a report issued by State Bank of Pakistan (SBP) here on Thursday.
MPs for not allowing non-taxpayers to purchase property
A parliamentary committee on Thursday recommended the government not to allow non-taxpayers to purchase property and vehicles in the Finance Supplementary (Amendment) Bill, 2018. The Senate Standing Committee on Finance and Revenue, which met under the chair of Farooq-H Naik, has finalised the budget proposals of the Senators for incorporating in the Finance Supplementary (Amendment) Bill, 2018. Minister of state for revenue Hammad Azhar and team of Federal Board of Revenue (FBR) did not attend the committee meeting, as they pledged the committee to give alternate plan of allowing non-taxpayers to purchase property and vehicles.

The Benchmark KSE100 Index have once again succeeded in recovering after retesting its major supportive region at 40,350 points during last trading session and have closed once again above a rising trend line which is supporting index since last two weeks. As of now it’s expected that index would continue its positive momentum during first half of current trading session and would try to head towards 41,210 and 41,300 points initially. But these both regions would try to resist against current bullish momentum. For current trading session index have resistances ahead at 41,210, 41,300 and 41,600 points respectively. Daily and weekly momentum is still bearish and chances of a bearish engulfing are prevailing on weekly chart if index would not succeed in closing above 41,300 points during current trading session. It’s recommended to trade very cautiously because failure to penetrate 41,300 points would add a lot of pressure on index in coming week.