PSX Daily Market Review - 29th Jan 2019

Trading volume at PSX floor dropped by 30.11 million shares or 19.29% on DoD basis, whereas the benchmark KSE100 index opened at 40,277.09, posted a day high of 40,465.15 and a day low of 40,261.39 points during last trading session while session suspended at 40,420.09 with net change of 155.31 points and net trading volume of 68.02 million shares. Daily trading volume of KSE100 listed companies dropped by 48.76 million shares or 41.75% on DoD basis.
Foreign Investors remained in net selling positions of 1.59 million shares but net value of Foreign Inflow increased by 2.79 million shares. Categorically, Foreign Corporate and Overseas Pakistanis remained in net selling positions of 1.80 and 0.22 million shares but Foreign Individuals investors remained in net buying positions of 0.43 million shares respectively. While on the other side Local Companies, NBFCs and Brokers remained in net buying positions of 1.41, 2.23 and 2.23 million shares respectively but Local Individuals, Banks, Mutual Fund and Insurance Companies remained in net selling positions of 0.84, 0.33, 1.45 and 0.86 million shares respectively.

Asia shares slip as China's Huawei in legal hot water; focus on Sino-U.S. talks
Asian shares stumbled on Tuesday and the dollar hovered near two-week lows as prospects for a long-awaited Sino-U.S. trade deal was dealt another blow after the United States leveled sweeping criminal charges against China’s telecom giant Huawei. MSCI’s broadest index of Asia-Pacific shares outside Japan got off to a shaky start with losses accelerating as other regional markets opened. Australia and New Zealand led the losses, with their benchmark indices down 0.7 percent each while South Korea’s KOSPI was off 0.3 percent. Chinese shares opened in the red too, with the blue-chip index down 0.2 percent.
Talks with IMF at final stage to acquire loan: Asad
Federal Finance Minister Asad Umer has said that talks with the International Monetary Fund (IMF) are at final stage to acquire loan, saying that the volume of loan is not the major issue rather the actual problem is the terms and conditions of the donor, which could be very harsh. He was talking to the media at the Lahore Chamber of Commerce & Industry. He pledged to make clubbing of taxes in the federal budget to facilitate the businessmen who were paying a large number of taxes.
Govt imposes moratorium on establishment of new OMCs
The federal government Monday imposed moratorium on the establishment of new oil marketing companies (OMC). A new criteria was being finalised for establishment of oil marketing companies (OMCs) and till its approval, a moratorium would remain in place for new set up of OMCs, said spokesman Oil and Gas Regulatory Authority (OGRA) here. According to the spokesman, the general Public, consumers and all stakeholders are informed that Ministry of Energy (Petroleum Division) (MEPD) is in the process of revising the criteria for establishment of oil marketing companies (OMCs) for which a draft summary has been forwarded to the concerned organizations.
AdAsia comes to Pakistan after 30 years
The logo unveiling ceremony of AdAsia 2019 —Asian Advertising Congress, was held at a local hotel. AdAsia is the largest and most prestigious advertising congress in Asia, organized bi-annually by the Asian Federation of Advertising Associations (AFAA). Started off in 1958, AdAsia 2019 is the 31st advertising congress that is being hosted by Pakistan in Lahore from December 2-5 this year. It is the second AdAsia to be held in Pakistan. In 1989 Pakistan hosted the 16th AdAsia which was a roaring success.
CPEC debt concerns to recede: Fitch Solutions
Debt concerns relating to the China-Pakistan Economic Corridor (CPEC) projects will begin to recede on the back of improving transparency while political risks have been diminished, says Fitch Solutions.Fitch in its latest report "Industry Trend Analysis - CPEC to Remain a Primary Driver of Pakistan''s Construction Industry" states: "We expect debt concerns surrounding CPEC projects to ease after financial details are released. In addition, we believe political risks associated with CPEC projects have diminished since the 2018 Pakistani general election. These factors will reduce overall risk profile of CPEC projects.".

The Benchmark KSE100 Index is trying to continue its bullish rally since last week but its not being succeeded 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.