Previous Session Recap
Trading volume at PSX floor dropped by 35.22 million shares or 20.62% on DoD basis, whereas the benchmark KSE100 index opened at 33,657.46, posted a day high of 34,008.35 and a day low of 33,572.36 points during last trading session while session suspended at 33,861.59 points with net change of 204.13 points and net trading volume of 91.19 million shares. Daily trading volume of KSE100 listed companies dropped by 23.35 million shares or 20.39% on DoD basis.
Foreign Investors remained in net selling positions of 2.77 million shares and net value of Foreign Inflow dropped by 1.13 million US Dollars. Categorically, Foreign Individual, Foreign Corporate and Overseas Pakistanis investors remained in net selling positions of 0.18, 1.77 and 0.82 million shares. While on the other side Local Individuals, Companies, Mutual Fund and Brokers remained in net buying positions of 4.03, 0.25, 1.22 and 0.59 million shares respectively but Banks, NBFCs and Insurance Companies remained in net selling positions of 2.00, 0.009 and 1.19 million shares respectively.
Analytical Review
Asia shares edge higher, eyes turn to Fed
Asian shares rose to a three-month peak on Tuesday after Wall Street hit all-time highs amid hopes of progress in Sino-U.S. trade talks and for another dose of policy stimulus from the Federal Reserve this week. Japan's Nikkei .N225 led the way with a rise of 0.5% to reach ground last trod a full year ago, while Shanghai blue chips .CSI300 dithered either side of flat. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS crept up 0.2% to its highest since late July. E-Mini futures for the S&P 500 ESc1 extended their gains by 0.1% and EUROSTOXX 50 futures STXEc1 held steady. U.S. President Donald Trump said on Monday he expected to sign a significant part of the trade deal with China ahead of schedule but did not elaborate on the timing. The U.S. trade representative also said they were studying whether to extend tariff suspensions on $34 billion of Chinese goods set to expire on Dec. 28 this year.
ADB approves $75 million loan for education project in Sindh
The Asian Development Bank (ADB) has approved a $75 million loan for a project that will help improve the quality, accessibility, and gender responsiveness of the secondary education system and infrastructure in the province of Sindh. Pakistan has 22.8 million out-of-school children, 28% of whom are in Sindh. The province also has the second-lowest gross enrollment ratios and net enrollment rates at all education levels in the country. The secondary education sector faces challenges ranging from outdated and dilapidated infrastructure, lack of access to schooling—particularly for girls—and poor teaching and learning quality, especially for core subjects including language, mathematics, and science.
hina warns member countries not to politicise FATF
The Financial Action Task Force (FATF) forum should not be politicised by countries to pursue their agenda, said a top Chinese foreign ministry official on Monday. “China does not want the FATF to be politicised by any single country. There are some countries which want to include Pakistan in the blacklist. They have political designs which China is against,” said Deputy Director General Yao Wen at the Department of Asian Affairs of China’s Ministry of Foreign Affairs. Speaking to a group of Pakistani journalists, Mr Yao said China blocked attempts to include Pakistan in the blacklist. “We made it clear to the US and India that we cannot do it. It goes beyond the purpose of FATF,” he added.
SBP calls for ‘industrial policy’ as priority
The State Bank of Pakistan (SBP) in its annual report on Monday said the rising share of services sector, at the expense of industry and agriculture, needs to be addressed while forecasting the GDP growth for FY20 between three and four per cent. According to the report, the country largely produces non-tradable services which are consumed domestically. At the same time, industrial output, exports and FDI have faltered, it added. “This pattern needs to be corrected in order to make trade deficit sustainable in the years to come. Putting in place a coherent industrial policy should be among the immediate priorities, while a gradual shift away from non-tradable services in favour of exportable services should also be pursued in the medium term,” said the SBP.
SCCI, Smeda agree to set up CPEC, Investment Facilitation Centre
The Sarhad Chamber of Commerce and Industry (SCCI) and Small & Medium Enterprises Development Authority (Smeda) have agreed to setup a CPEC and Investment Facilitation Centre to resolve business community issues with joint coordination of the relevant government departments and to give boost to industrialization in the province. He furthermore elaborated that a web portal would be launched, which aimed at to direct contact or link with relevant government departments in order to readdress the business community issue amicably and priority basis.
Asian shares rose to a three-month peak on Tuesday after Wall Street hit all-time highs amid hopes of progress in Sino-U.S. trade talks and for another dose of policy stimulus from the Federal Reserve this week. Japan's Nikkei .N225 led the way with a rise of 0.5% to reach ground last trod a full year ago, while Shanghai blue chips .CSI300 dithered either side of flat. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS crept up 0.2% to its highest since late July. E-Mini futures for the S&P 500 ESc1 extended their gains by 0.1% and EUROSTOXX 50 futures STXEc1 held steady. U.S. President Donald Trump said on Monday he expected to sign a significant part of the trade deal with China ahead of schedule but did not elaborate on the timing. The U.S. trade representative also said they were studying whether to extend tariff suspensions on $34 billion of Chinese goods set to expire on Dec. 28 this year.
The Asian Development Bank (ADB) has approved a $75 million loan for a project that will help improve the quality, accessibility, and gender responsiveness of the secondary education system and infrastructure in the province of Sindh. Pakistan has 22.8 million out-of-school children, 28% of whom are in Sindh. The province also has the second-lowest gross enrollment ratios and net enrollment rates at all education levels in the country. The secondary education sector faces challenges ranging from outdated and dilapidated infrastructure, lack of access to schooling—particularly for girls—and poor teaching and learning quality, especially for core subjects including language, mathematics, and science.
The Financial Action Task Force (FATF) forum should not be politicised by countries to pursue their agenda, said a top Chinese foreign ministry official on Monday. “China does not want the FATF to be politicised by any single country. There are some countries which want to include Pakistan in the blacklist. They have political designs which China is against,” said Deputy Director General Yao Wen at the Department of Asian Affairs of China’s Ministry of Foreign Affairs. Speaking to a group of Pakistani journalists, Mr Yao said China blocked attempts to include Pakistan in the blacklist. “We made it clear to the US and India that we cannot do it. It goes beyond the purpose of FATF,” he added.
The State Bank of Pakistan (SBP) in its annual report on Monday said the rising share of services sector, at the expense of industry and agriculture, needs to be addressed while forecasting the GDP growth for FY20 between three and four per cent. According to the report, the country largely produces non-tradable services which are consumed domestically. At the same time, industrial output, exports and FDI have faltered, it added. “This pattern needs to be corrected in order to make trade deficit sustainable in the years to come. Putting in place a coherent industrial policy should be among the immediate priorities, while a gradual shift away from non-tradable services in favour of exportable services should also be pursued in the medium term,” said the SBP.
The Sarhad Chamber of Commerce and Industry (SCCI) and Small & Medium Enterprises Development Authority (Smeda) have agreed to setup a CPEC and Investment Facilitation Centre to resolve business community issues with joint coordination of the relevant government departments and to give boost to industrialization in the province. He furthermore elaborated that a web portal would be launched, which aimed at to direct contact or link with relevant government departments in order to readdress the business community issue amicably and priority basis.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 have succeeded in engulfing previous daily candle during last trading session but it still could not succeed penetration above its major resistant trend line during last trading session. As of now index would again face major resistances from 34,000 points and in case it would succeed in penetration above said region then next resistant region which would try to cap current bullish sentiment falls at 34,250 points. As of now it's recommended to start selling on strength with strict stop loss of 34,250 points because if index would not succeed in penetration above 34,000 points on daily closing basis then a downward dip would be witnessed which would push index towards 33,500 and 33,041 points. Index would remain range bound between 34,250 points and 32,700 points until unless a clear breakout of either side would take place. Breakout of either side would push index for further 500-700 points in respective direction.
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