PSX Daily Market Review - 29th Oct 2018

Trading volume at PSX floor increased by 24.50 million shares or 7.12% on DoD basis, whereas the Benchmark KSE100 index opened at 39,707.50 posted a day high of 40,604.91 and day low of 39,375.42 points while the session suspended at 40,556.45 with net change of 924.54 points and net trading volume of 237.22 million shares. Daily trading volume of KSE100 listed companies increased by 36.76 million shares or 18.34% on DoD basis.
Foreign Investors remained in net selling position of 2.94 million shares and net value of Foreign Inflow dropped by 2.98 million US Dollars. Categorically, Foreign Individuals, Corporate and Overseas Pakistanis investors remained in net selling positions of 0.07, 1.12 and 1.75 million shares. While on the other side Local Individuals, Local Companies, NBFCs, Mutual Fund and Brokers remained in net buying positions of 5.93, 2.00, 0.22, 5.34 and 3.80 million shares but Banks and Insurance Companies remained in net selling positions of 13.69 and 2.58 million shares respectively.

Asian shares bounce but sentiment remains fragile
Asian shares bounced from last week’s steep declines on Monday, though sentiment remained fragile amid heightened worries about corporate earnings and a slowdown in global economic growth. Wider sentiment in markets has been hit by a range of negative factors from an intensifying China-U.S. trade conflict to worries about U.S. corporate earnings to Italian budget woes as well as Federal Reserve rate increases. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.4 percent after sliding almost 4 percent last week.
Pakistan imports $344.173m worth fertiliser in three months
Fertilisers imports into the country during first three months of current financial year grew by 49.62 percent as compared the imports of the corresponding period of last year. In first quarter of current financial year about 908,802 metric tons of fertilizers valuing US$ 344.173 million were imported to fulfill the domestic requirements of the major agriculture input as against the imports of 622.819 metric tons costing US$ 230.029 million of same period last year, according the data of Pakistan Bureau of Statistics.
Karot Hydropower project enters comprehensive construction stage
The first hydropower investment project of the China-Pakistan Economic Corridor (CPEC), the Karot Hydropower Station, has entered the stage of comprehensive construction. The construction has begun after successful completion of closure of the Jhelum River, on which the station is being constructed, according to a Chinese media website. The hydropower station is located in the Karot area of Punjab province and is the fourth level of the Jhelum River Cascade Hydropower Project .
Rs100.65b released under PSDP 2018-19
The government has released over Rs 100.65 billion under its Public Sector Development Programme (PSDP) 2018-19 for various ongoing and new schemes against the total allocations of Rs.675 billion. The released funds include Rs 47.14 billion for federal ministries and Rs 18.455 billion for special areas, according to a latest data released by Ministry of Planning, Development and Reform. Out of these allocations , the government released Rs 30.57 billion for National Highway Authority out of total allocation of Rs 185.2 billion, whereas Rs 2.1 billion have been released for NTDC and Pepco for which an amount of Rs 33.36 billion was allocated under PSDP 2018-19.
DFID-funded Karandaaz launches second round of Women Entrepreneurship Challenge 2018
Karandaaz Pakistan has launched the second round of its flagship Women Entrepreneurship Challenge with 19 women-led businesses from across the country. The annual challenge, funded by the UK’s Department for International Development (DFID), is a leading business support programme that promotes a culture of entrepreneurship amongst women. Karandaaz will invest up to PKR 20 million (per business) in enterprises that have potential for growth after a competitive pitching round to a panel of judges. It will also provide customized business development support to the businesses that have qualified for the programme.

The Benchmark KSE100 Index has reached 61.8% correction on its weekly chart and right now it’s going to face a major resistance at 40,820 points if it would not succeed in opening above this level with a positive gap. Technically it is about to face resistance from crossover of a descending trend line along with a horizontal resistant line. The said trend line is formatting a bearish trend channel and index had started its recent bullish rally after getting support from supportive trend line of said channel. As of now it’s expected that index would start a bearish reversal if it would not succeed in closing above 40,812 points but in case of a gap opening bears would have their last hope standing at 41,500 points because closing above that region would change market sentiment for short term basis in bullish direction. It’s recommended to post stop loss to any short positions at 41,500 points and for new entries either wait for closing above 41,500 or initiate short positions on spike with strict stop loss of 41,500 points. After a clear breakout of 41,500 index would try to target 42,300 and 43,011 points in coming days. While on flipside index would find supports around 40,000 and 39,400 points.