PSX Daily Market Review - 2nd Nov 2018

Trading volume at PSX floor dropped by 40.1 million shares or 14.06% on DoD basis, whereas the Benchmark KSE100 index opened at 41,616.27, posted a day high of 41,827.05 and day low of 41,454.54 points during last trading session while session suspended at 41,716.10 with net change of 66.74 points and net trading volume of 151.71 million shares. Daily trading volume of KSE100 listed companies dropped by 27.26 million shares or 15.23% on DoD basis.
Foreign Investors remained in net selling position of 6.79 million shares and net value of Foreign Inflow dropped by 3.15 million US Dollars. Categorically, Foreign Individual, Corporate and Overseas Pakistani investors remained in net selling positions of 0.27, 4.99 and 1.63 million shares respectively. While on the other side Local Individuals, NBFCs, Mutual Funds and Broker remained in net buying positions of 8.86, 0.99, 3.19 and 0.65 million shares respectively but Local Companies, Banks and Insurance companies remained in net selling positions of 4.92, 0.99 and 2.13 million shares respectively.

Asian shares jump as investors see trade war progress
Asian shares jumped on Friday after a phone call between the U.S. and Chinese presidents raised hopes of a thaw in trade tensions, but gains were checked by signs of slowing global growth and a warning from tech giant Apple Inc on holiday sales. MSCI’s broadest index of Asia-Pacific shares outside Japan touched a two-and-a-half-week high and was last up 1.4 percent, adding to the previous session’s strong gains. But that came after a sharp 10.3 percent dive in October, its worst month since August 2015. Chinese blue-chips gained 1.7 percent, and China’s start-up board added 3 percent after President Xi Jinping promised more support for private firms. Japan’s Nikkei stock index was 1.2 percent higher.
Ogra cuts LPG price by Rs15/kg
Oil and Gas Regulatory Authority (OGRA) Thursday decreased price of liquefied petroleum gas (LPG) by Rs 15 per kilogramme for the month of November. Oil and Gas Regulatory Authority (OGRA) Thursday decreased price of liquefied petroleum gas (LPG) by Rs 15 per kilogramme for the month of November. Ogra’s decision of slashing the LPG price will reduce the cost of 11.8kg domestic cylinder by Rs 177. Ogra notifies domestically produced LPG’s maximum producers’ price, margins of marketing and distribution companies and consumer prices. According to the notification issued here by OGRA, the producers’ price of LPG (propane 40 percent and butane 60 percent) has been determined at 69634.05 per metric ton (MT). This producers’ price included excise duty of Rs85/M.Ton while excluding Petroleum Levy. And under this head, the producer price of 11.8kg cylinder has been worked out at Rs 821.68
Foreign reserves reach $14.18b
Total liquid foreign reserves of the country stand at 14.185 billion dollars, said State Bank of Pakistan (SBP). According to a SBP’s weekly statement issued on Thursday, the foreign reserves held by the State Bank on October 26 were 7,776.9 million and the net foreign reserves with commercial banks amounted to 6,407.6 million. During the week ending Oct 26, SBP’s reserves decreased by 48 million to 7,777 million, due to external debt servicing and other official payments.
Hike in oil rates rejected
The business community on Thursday rejected the increase in the prices of petroleum products terming it a wrong decision which will hit the economy hard. The Pakistan Industrial and Traders Associations Front former chairman Irfan Iqbal Sheikh condemned the government for increasing prices of petroleum products up to Rs6 per liter, terming it bad news for the country’s economy, as this hike in fuel rates would lead to increased cost of production cost of doing business as well. He demanded the government to withdraw the hike immediately, saying it would ruin the manufacturing sector entirely. He, while strongly reacting on this anti-industry and anti-masses decision, said that government did not ever bother to pass on the benefit of decrease of oil prices in international market and earned billion rupees, which was a sheer injustice and now made a huge raise. He said that the timeline for the increase in the prices of petroleum products was also raising questions. He said that at a time when the whole industry was suffering due to high cost of doing business, the raise in POL prices was bound to give a further blow to the industry.
Govt focusing on export-oriented policies, says planning secy
Secretary Planning, Development and Reforms Zafar Hasan has said the government is focusing on export-oriented policies to boost up the country’s exports and put economy on growth trajectory. He said this while talking to a German business delegation which, headed by Deputy Ambassador to Pakistan Jens Jokisch, called on him here. Members Planning Commission and senior officials of the ministry were also present in the meeting. The secretary said the present government was cognizant of issues plaguing the national economy and endeavoring to overcome challenges through effective economic policy making. He said measures were being taken to enhance tax to GDP ratio. He apprised that security situation in the country had improved significantly over the past couple of years and Pakistan was fast emerging as an attractive destination for foreign investment.

The Benchmark KSE100 Index have formatted a triple top on daily chart during last three trading session and its getting resistance from a very crucial resistant level of 41,900 points which fall on a horizontal resistant line. As of now daily momentum indicators are trying to generate bearish crossovers as daily stochastic have succeeded in generating a bearish crossover and maorsi is ready for this and if it would succeed then a serious pressure would be witnessed on index in coming days. It’s recommended to initiate selling on strength with strict stop loss of 42,300 points and profit target would start widening if index would succeed in closing below 40,900 points on daily chart.