PSX Daily Market Review - 2nd Feb. 2018

Trading volume at PSX floor dropped by 60.28 million shares or 20.89% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 44103.07, posted a day high of 44436.39 and a day low of 4103.07 during last trading session. The session suspended at 44255.48 with net change of 206.43 and net trading volume of 70.7 million shares. Daily trading volume of KSE100 listed companies dropped by 9.46 million shares or 11.8% on DoD basis.
Foreign Investors remained in net selling position of 50.72 million shares and net value of Foreign Inflow dropped by 4.14 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistanis remained in net selling of 2.52 and 48.23 million shares. While on the other side Local Individuals, NBFCs, Mutual Funds and Brokers remained in net buying positions of 4.1, 0.17, 0.31 and 50 million shares respectively, but Local Companies, Banks and Insurance Companies remained in net selling positions of 0.83, 2.26 and 3.04 million shares respectively.

The euro neared multi-year peaks on Friday as talk of policy tightening in Europe and expectations that inflation is set to gear higher drove up borrowing costs globally, a move that sparked a sell-off in Asian equities. Asian shares stumbled, with Korean and Japanese benchmark indices falling more than 1 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.3 percent and away from a record high. Wall Street saw a mixed closing on Thursday with the Dow up 0.1 percent, the S&P 500 marginally off and Nasdaq down 0.35 percent. High-profile tech companies reported after the closing bell on Wall Street, with Amazon.com surging 6 percent as it reported the largest profit in its history. Alphabet was down nearly 3 percent in extended trade after its earnings missed estimates and Apple bounced more than 3 percent.
Prime Minister Shahid Khaqan Abbasi Thursday inaugurated Digi Skills programme aimed at training one million youth through online modules in Islamabad. Addressing the ceremony, the PM said the present government has delivered in many fields by building motorways, ports, airports and establishing power plants but the advancement in the information technology sector is most important contribution in the last five years. He said that Digi Skills programme will equip the youth to get online jobs and earn money through a non-traditional way. He said that he has full faith in the youth of the country and expressed the confidence that the girls especially will lead in the e-commerce and digital skills. Abbasi said the world was changing fast due to revolution in information technology. He said the government's responsibility is to fully facilitate the private sector to take the initiative and lead the way. Abbasi said the government on its part is committed to ensure availability of broadband in every inch of the country and facilitate e-commerce.
The Federal government Thursday removed Chief Executive Officers (CEOs) of four distribution companies(Discos), for poor performance, inefficiency and higher losses. The minister for power division Sardar Awais Ahmed Khan Leghari said that the CEOs were removed because they could not control electricity theft and lines losses that doubled the power sector losses to Rs40 billion October-December 2017 compared to about Rs21.8 billion of the same period last year. He said while the government kept on increasing generation capacity, the losses kept on increasing because of poor performance of the distribution companies. The Chief Executive Officers (CEOs) who have removed are CEO of Sukkur Electric Supply Company (SEPCO) Abdul Lateef Anjum, Lahore Electric Supply Company (LESCO) CEO Wajid Ali Kazmi, Peshawar Electric Supply Company (PESCO) CEO Shabir Ahmad Gilani and Quetta Electric Supply Company (QESCO) CEO Rehmatullah Baloch.
After more than 10 percent increase in POL products prices the government Thursday increased the prices of LPG and set Rs 1332.48 per 11.8 Kg cylinder for the end consumers. A notification issued by Ogra stated that in exercise of the powers conferred by section 6(2)(r) of Ogra Ordinance 202(XVII of 202) read with Rule 18(1) of LPG (Production &Distribution) Rules,2001, the Ogra hereby notified in respect of indigenous LPG , maximum producers prices , margin of marketing and distribution companies and consumer price as conveyed by the Ministry of Energy(Petroleum Division) vide letter No.LPG-6(11)/2017-policy dated 30th January 2018 and letter No.LPG-6(1)/2018-Policy dated 1st February,2018. Producers Price (Including excise Duty of Rs 85/M.Ton) (Excluding Petroleum Levy) Propane 40percent and Buttane 60 percent. 56845.37 per Metric Ton (MT).
Pakistan’s annual inflation climbed to 4.4 per cent in January from 3.7pc in the same month last year mainly due to hike in petroleum prices. However, it eased from 4.6pc in December 2017 owing to a decline in the prices of some perishable products. Inflation, measured through the consumer price index (CPI), tracks the prices of around 480 commodities every month in urban centres across the country. This is still the second highest month-on-month increase since April 2017. The trend indicates that the consumer inflation will move up in the next months due to an increase in the petroleum prices, according to data released by the Pakistan Bureau of Statistics.
Its recommended to practice caution as market is expected to remain volatile.

The Benchmark KSE100 Index is trying to bounce back after getting support from a decending trend line on daily chart but its also capped by a trend line which try to push it back once again to retest its supportive region of 43840 points. As of right now index have resistances ahead at 44465, 44960 and 45500 while supportive regions are standing at 43840. Daily stochastic is trying to generate a bullish crossover but last week's hammer still have its impact intact, as today is last trading day of week and chances of bearish rally could not be rolled out, therefore its recommended to stay side line.