PSX Daily Market Review - 29th Jan. 2018

Trading volume at PSX floor increased by 24.89 million shares or 10.13% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 44825.78, posted a day high of 44825.78 and a day low of 44196.57 during last trading session. The session suspended at 44551.13 with net change of -265.58 and net trading volume of 130.99 million shares. Daily trading volume of KSE100 listed companies increased by 29.58 million shares or 29.17% on DoD basis.
Foreign Investors remained in net selling position of 3.09 million shares but net value of Foreign Inflow increased by 0.52 million US Dollars. Categorically, Foreign Corporate investors remained in net selling position of 5.51 million shares but Overseas Pakistanis remained in net buying position of 2.39 million shares. While on the other side Local Individuals, Mutual Funds and Brokers remained in net buying positions of 10.29, 8.78 and 8.08 million shares respectively but Local Companies, Banks and Insurance Companies remained in net selling postions of 16.86, 5.09 and 0.78 million shares respectively.

Asian shares extended their bull run on Monday amid upbeat corporate earnings and strong global economic growth, while the dollar tried to bounce even as the White House continued to complain of “unfair” trade practices by competitors. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.4 percent, aiming for a 12th straight session of gains. It is up 8 percent for the year so far. Japan’s Nikkei rose 0.5 percent as the yen eased a little, while South Korea notched a record. Hong Kong’s Hang Seng also rose 0.5 percent. It has been the best performer for the year with a rise of more than 11 percent, followed by Shanghai blue chips with gains of nearly 9 percent, though the latter dipped on Monday. Wall Street has likewise been on a tear. Just last week, the Dow rose 2.08 percent, the S&P 500 2.22 percent and the Nasdaq 2.31 percent.
The Punjab government has finally notified ban on installation of new cement plants and enlargement of the capacity of the existing units on Saturday. The Industries, Commerce and Investment department issued the notification in this regard. The Standing Committee of the cabinet on legislative business has a couple of days ago recommended the inclusion of the cement industry in schedule-C of the industrial location policy 2002. Moreover, the provincial cabinet also endorsed the proposal and recommendation of the standing committee through circulation. Punjab Chief Minister Shehbaz Sharif has already approved the summary for the imposition of ban on installation of new cement plants in the entire province.
Pakistan Electric Power Company (PEPCO) Managing Director Musaddiq Ahmed Khan has directed all Chief Executive Officers (CEOs) of Distribution Companies (DISCOs) to adhere to PEPCO safety Standard Operating Procedures(SOPs). The directive was issued in wake of increased fatal accidents of linemen while working on distribution transformer sub-stations without permit to work (PTW) and proper grounding, to remove faults/replacement of burnt transformers/jumpers. MD PEPCO said, that during investigations, it was revealed that distribution transformer sub stations are neither properly maintained nor proper D-Fuses are installed, instead rock fuses are used which become invisible during darkness and heavy sunlight, that may lead to fatal accidents. Furthermore, the linestaff does not have proper lighting arrangements at night to carry out the work safely.
Investment scenario in Punjab province is improving fast as large number of foreign investors have very recently signed agreements with provincial government for putting money in many new ventures. Lahore Chamber of Commerce and Industry (LCCI) President Malik Tahir Javaid told APP here Sunday that it was not the foreign investment alone that was surging but the local businessmen were also showing great confidence in the policies of provincial government. Malik mentioned that Punjab was the most industrialized province; it produced textiles, sports goods, heavy machinery, electrical appliances, surgical instruments, cement, vehicles, auto parts, IT, metals, sugar mill plants, cement plants, agriculture machinery, bicycles and rickshaws, floor coverings, and processed foods.
The third Session of Pakistan-Italy Joint Economic Commission begins in Rome, Italy tomorrow (Monday). Minister of State for Finance Rana Muhammad Afzal will lead the Pakistani delegation and co-chair the session along with Italy 's Deputy Minister for Economic Development Ivan Scalfarotto. Both the sides will exchange views on the prospects of the bilateral commercial and investment relationship. They will also sign three Letters of Intent on cooperation in the areas of textile, footwear and gemstones industry. An MoU between Trade Development Authority of Pakistan and ICE-Italian Trade Agency is also to be signed. A Memorandum of Intent between Pakistan Stone Development Company and its Italian counterpart Confidustria Mardomacchine will also be inked on this occasion.
Its recommended to practice caution as market is expected to remain volatile.

The Benchmark KSE100 Index have bounced back after getting support from a trend line which was a strong resistant in past and this time it have reacted as a strong support. As of right now index have strong supports around 44121 and 43841 points while resistant regions are standing at 44960 and 45465. Daily Stochastic and MAORSI have generated bearish crossovers and these are signs of start of a correction while on weekly chart a hammer have occured on very crucial level which is also a reversal pattern therefore its recommended to excercise caution while trading during current trading session. Its recommended to initiate selling on strength or book profits on spikes during current trading session.