PSX Daily Market Review - 2nd Jan. 2018

Trading volume at PSX floor dropped by 122.71 million shares or 50.92% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 40470.44, posted a day high of 40815.96 and a day low of 4040169.62 during last trading session. The session suspended at 40711.04 with net change of 239.56 and net trading volume of 51.41 million shares. Daily trading volume of KSE100 listed companies dropped by 75.45 million shares or 59.48% on DoD basis.
Foreign Investors remained in net buying position of 0.25 million shares and net value of Foreign Inflow increased by 0.82 million US Dollars. Categorically, Foreign Individuals remained in net selling position of 0.035 million shares but Foreign Corporate and Overseas Pakistani Investors remained in net buying postions of 0.04 and 0.24 million shares respectively. While on the other side Local Individuals,Banks, Mutual Funds and Insurance Compalies remained in net buying positions of 2.4, 0.25, 0.34 and 0.19 million shares but Local Companies, and Brokers remained in net selling postions of 1.93 and 0.18 million shares respectively.

Asian shares scaled a decade peak on Tuesday after a survey of Chinese manufacturing proved surprisingly upbeat, while the euro lurked within striking distance of its 2017 top against an ailing U.S. dollar. Sentiment was also helped by news that North Korea had offered an olive branch to South Korea, with Kim Jong Un saying he was “open to dialogue” with Seoul. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.5 percent to heights last visited in 2007, having risen by one-third in value last year. Japan’s Nikkei was closed for a holiday but E-Mini futures for the S&P 500 edged up 0.15 percent. Shanghai blue chips climbed 1 percent after the Caixin index of Chinese industry rose to a four-month high of 51.5 in December, confounding forecasts for a decline.
The State Bank of Pakistan (SBP) has decided to cut the import requirement of cash dollars to 35 per cent against the export of foreign currencies, creating fears about a shortage of the greenback in the open market. The central bank issued a circular on Monday that asked exchange companies to bring only 35pc cash dollars as opposed to 100pc against the export of foreign currencies to Dubai. “It has been decided that exchange companies can continue to import cash dollars against the export of permissible foreign currencies. However, total imports of cash dollars shall not exceed 35pc of total exports of permissible foreign currencies during a month,” said the circular.
Adviser to Prime Minister on Finance, Economic Affairs and Revenue Miftah Ismail said on Monday that the government is taking several measures for enhancing tax net to increase revenue, with the consultation of all provisional stakeholders. “The mobilization of domestic resources through reforms in taxation is essential to ensure sustainable financing of development as government would not depend on foreign loan”, he said in an interview. While appreciating former Finance Minister Muhammad Ishaq Dar, he said, Dar contributed for country’s economic stability and growth. He assured that in a month “We will take further steps to make our economy more strong through tax reforms.” “We want to facilitate the new tax filers and less tax burden on middle class citizens for balancing tax distribution”, he said.
The Punjab government is providing 60 per cent subsidy on installation of drip irrigation system and in this regard Agriculture Department (Water Management Wing) has been given a target of shifting 20,000 acres of land to drip irrigation system (DIS). A spokesman for the department disclosed this while talking to APP on Monday. He said that the use of DIS was of high importance for uneven, pothohari and desert lands. This system helps save water, labour, fertilizers and time up to 50 per cent. Also, there is always less growth of weeds in this system of irrigation, he added. The spokesman further said that through this system water and fertilizers could be provided to the plants at the same time, adding that through conventional system of irrigation most of water is wasted. Interested farmers should contact the Agriculture Department's Water Management Wing for installation of the system.
Central Development Working Party (CDWP) has approved different project worth Rs 12.2 billion for improvement in higher education and science and technology sectors. Deputy Chairman Planning Commission (PC) Sartaj Aziz has said it is first and foremost mission of government to ensure bright future for the young generation through education under government of Pakistan vision -2025 program. The CDWP accorded this approval in its meeting held here on Monday. Sartaj Aziz said strategy has been evolved in the meeting for extending the best educational facilities to women in the field of science and technology in different district besides constructing hostels for the girl students for their residential purpose in the educational institutions. Several important decisions were taken.
Its recommended to exercise caution while trading during current trading session.

The Benchmark KSE100 Index have closed outside of its bearish trend channel for second time consectively on daily chart and had bounced back after retesting its supportive region of 40150 which was reactcting like a strong resistance previously but supported index during last trading session. Its expected that index would now try to target 40930 and 41200 where it could face resistances during current trading session. Its recommended to trade cautiously today as Index is standing at a very crucial level until it close above 41200.