PSX Daily Market Review - 2nd March 2018

Trading volume at PSX floor increased by 60.59 million shares or 40.03% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 43259.45, posted a day high of 43634.10 and a day low of 43176.06 during last trading session. The session suspended at 43510.39 with net change of 270.94 and net trading volume of 79.83 million shares. Daily trading volume of KSE100 listed companies increased by 29.81 million shares or 59.61% on DoD basis.
Foreign Investors remained in net buying position of 8.14 million shares and net value of Foreign Inflow increased by 3.06 million US Dollars. Categorically, Foreign Corporate Investors remained in net buying position of 13.8 million shares but Overseas Pakistanis remained in net selling position of 6.63 million shares. While on the other side Local Individuals, Companies andn Banks remained in net selling positions of 17.69, 8.36 and 2.85 million shares respectitvely but Local NBFCs, Mutual Funds, Brokers and Insurance Companies, remained in net buying positions of 0.33, 11.76, 7.95 and 0.86 million shares respectively.

Stock markets in Asia on Friday extended a Wall Street rout as investors were rattled after President Donald Trump announced the United States would impose hefty tariffs on steel and aluminium imports, raising the spectre of a global trade war.MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.8 percent, led by a fall in South Korean shares while Japan’s Nikkei tumbled 2.4 percent.Asian steelmaker shares dropped, with South Korea’s Posco falling 3 percent and Japan’s Nippon Steel 4 percent.On Wall Street, the S&P 500 lost 36.16 points, or 1.33 percent, to 2,677.67 on Thursday, coming a day after the investors sold off heavily on worries the Federal Reserve might increase rates more than expected this year.“The world stands on the brink of a trade war as Donald Trump announces severe tariffs on steel and aluminium - forget the yield curve - this is how recessions start,” said Robert Carnell, head of research, Asia-Pacific at ING In Singapore.
The strategically important Neelum Jhelum Hydropower Project , located in Azad Jammu & Kashmir, is all set to start electricity generation, as water filling in head race tunnel commenced on Thursday.The head race tunnel is a component of 52 kilometer long water way system of the project that has been constructed underground in the high mountain areas to divert water from the water reservoir to the power house of the project .Subsequent to filling of the head race tunnel, wet commissioning of the first generating unit will be carried out, meaning thereby, electricity generation will start from the project by end of the current month.Neelum Jhelum Hydroelectric Power Company – a subsidiary of the Pakistan Water and Power Development Authority (Wapda) – arranged a simple ceremony at the project site to celebrate the achievement of water filling in the head race tunnel of the project . Wapda Chairman Muzammil Hussain was the chief guest of the ceremony attended by the project authorities and representative of the consultants and the contractors.
Moody’s Investors Service says that its outlook for banks in Pakistan (B3 stable) is stable over the next 12-18 months, but the economy is susceptible to political instability. The outlook is driven by an accelerating economy and stable funding, while also taking into account the banks’ large holdings of low-rated government bonds, modest capital levels and high asset risks.“Pakistan’s economic growth — boosted by domestic demand and China-funded infrastructure projects — will stimulate lending and support a slight improvement in asset quality over the next 12-18 months,” says Constantinos Kypreos, a Moody’s Senior Vice President, on Wednesday.
U.S. oil prices edged up on Friday, snapping three days of declines, but gains were limited as Asian share markets extended a selloff on Wall Street after news of planned U.S. tariffs on steel and aluminium raised fears of a trade war.President Donald Trump announced he would impose hefty tariffs on the two metals to protect U.S. producers, risking retaliation from major trade partners like China, Europe and neighbouring Canada.U.S. West Texas Intermediate (WTI) crude was up 5 cents, or 0.1 percent, at $61.04 by 0233 GMT after touching a two-week low of $60.18 a day earlier.Global benchmark Brent was up 9 cents, or 0.1 percent, at $63.92, having settled down 1.4 percent on Thursday, also a two-week low, and is set for a weekly fall of about 5 percent.
Pakistan Water and Power Development Authority (WAPDA) achieved yet another landmark towards energy security of the country, as Tarbela 4th Extension Hydropower Project started electricity generation Monday. The first generating unit, put into operation has started providing electricity to the National Grid. To mark the significant development of electricity generation from the first unit, Wapda Chairman Muzammil Hussain visited Tarbela 4th Extension Hydropower Project . Highlighting significance of the project in economic development and social uplift of the country, he said that prime minister will formally inaugurate the project in 2nd week of March. Under the project , three electric power generating units – each of them having capacity of 470 MW – have been installed at the Tunnel 4 of Tarbela Dam. The first unit has started electricity generation. The second unit is scheduled to be commissioned by end of April, while the third unit is schedule to start electricity generation by end of May, this year. It merits a mention that the 1410 MW-Tarbela 4th Extension is a component of least-cost energy generation plan.
Market seems to remain volatile during current trading session therefore its recommended to practice caution.

The Benchmark KSE100 Index have retested resistant trend line of its bearish trend channel but could not become able to close above that line along with another major resistant trend line. As of right now index would try to open with a positive gap but its still capped by strong resistant regions at 43780 and 43960 points on intrday basis. Today is last day of week therefore daily closing of current trading session is very important as it would decide short term trend of index. Currently index is standing at a very crucial level and if would not become able to penetrated 43780 and 43960 points then it would start a bearish trend again which would lead index towards 42500 again. For current trading session its recommended to sell on strength for profit taking. Its not recommended to initiate new buying until index close above 43960 points.