PSX Daily Market Review - 30th May 2018

Trading volume at PSX floor dropped by 19.04 million shares or 13.66% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 42,146.76, posted a day high of 42,667.69 and a day low of 42,112.75 during last trading session. The session suspended at 42,622.74 with net change of 484.16 and net trading volume of 67.53 million shares. Daily trading volume of KSE100 listed companies dropped by 17.71 million shares or 20.78% on DoD basis.
Foreign Investors remained in net selling position of 0.14 million shares but net value of Foreign Inflow increased by 3.54 million US Dollars. Categorically, Foreign Individuals and Foreign Corporate remained in net buying position of 3.29 and 1.69 million shares but Overseas Pakistanis investors remained in net selling positions of 5.12 million shares. While on the other side Banks, NBFCs, Mutual Funds and Insurance Companies remained in net buying positions of 1.25, 1.41, 1.07 and 1.41 million shares but Local Individuals, Local Companies and Brokers remained in net selling positions of 1.34, 1.62 and 2.48 million shares respectively.

Stocks tumble as Italian crisis knocks global sentiment
Asian shares extended a global sell-off in early trading Wednesday as Italy’s political crisis provoked a heavy retreat on Wall Street, sent the euro to a 10-month low and pushed up borrowing costs for the government in Rome. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.1 percent, while Japan’s Nikkei average shed 1.7 percent to hit a six-week low. South Korea’s KOSPI and the Australian stock benchmark slipped 1.6 percent and 0.7 percent, respectively. On Wall Street on Tuesday, the Dow Jones Industrial Average fell 1.58 percent to 24,361.45, the S&P 500 lost 1.16 percent to 2,689.86 and the Nasdaq Composite dropped 0.5 percent to 7,396.59. Investors fear that repeat elections in the euro zone’s third-largest economy - which could come as soon as July - may become a de-facto referendum on Italian membership of the currency bloc and the country’s role in the European Union.
11461MW electricity added to national grid: Abbasi
Prime Minister Shahid Khaqan Abbasi said Tuesday that the PML-N government has successfully overcome the challenge of power shortage by adding 11461 megawatt of electricity to the national grid , Radio Pakistan reported. He was addressing a news conference in Islamabad along with Minister for Power, Awais Leghari and Information Minister, Marriyum Aurangzeb to present his government's performance in energy sector. The premier said that the country's power generation capacity increased from 18,753 MW in 2013 to 28,704 MW this year. He said in July 2013, 9.9 billion units were produced, whereas in July this year, the actual production will rise to 14.6 billion units, showing an increase of 4.75 billion units.
Asma Hamid’s appointment as AGP challenged before the LHC
A writ petition has been moved to the Lahore High Court challenging appointment of additional advocate general Asma Hamid as Advocate General Punjab. Barrister Javed Iqbal Jafree has filed the petition, saying that Asma Hamid was appointed as principal law officer of Punjab in violation of merit. He alleged that she was appointed on political basis and many senior law officers were ignored to fill the post. The lawyer pointed out that there was no mechanism to fill the constitutional post of Advocate General Punjab. He asked the court to set aside the appointment of Asma Hamid as AGP for being on political grounds.
Circular debt reaches Rs573b, Senate body told
Senate Special Committee on Circular Debt was Tuesday informed that during last five years (from 2013-18) the circular debt has reached to Rs 573 billion. The committee, held with Senator Shibli Faraz in the chair, discussed the issues of circular debt , electricity theft and load shedding. Briefing the committee, Joint Secretary Power division said that from 2013-18 the circular debt has reached to Rs 573 billion. He said that the running defaulters is Rs 348 billion. He further said that the government is providing a subsidy of Rs 52.22 billion to AJK, Rs14.2 billion to Fata and Rs31.4 billion to industrial sector. The joint secretary said that 650 MW electricity is being provided to K-Electric. He said that from March to July 2018 the generation cost of the electricity is Rs 8.52 per unit the consumer cost is Rs 11.9 per unit.
Pakistan, WB sign two financing pacts of $400m
Pakistan on Tuesday has signed two financing agreements worth $400 million with the World Bank including Punjab Cities Programme ($200 million) and Punjab Green Development Programme ($200 million). Economic Affairs Division Secretary Syed Ghazanfar Abbas Jilani signed the financing agreements on behalf of the Government of Pakistan while representatives of Government of Punjab signed their respective Programme/Operation Agreements. Patchamuthu Illangovan, Country Director signed the Financing and Programme/Operation Agreements on behalf of the World Bank. The World Bank last week has committed $728 million through four projects to put Pakistan on the path of climate resilient development which would benefit millions of its citizens. The projects included Punjab Cities Programme and Punjab Green Development Programme, which were signed Tuesday.

The Benchmark KSE100 Index have created a morning shooting star on daily chart and its heading towards its major resistant region of 42,860 points after maintaining its supportive region at a horizontal support and two supportive trend llines. If Index would not succeed in closing above its resistances this time then some extra ordinary pressure could be witnessed. Intraday and daily momentum indicators are in bearish mode because hourly and daily stochastic have generated bearish crossovers while daily and hourly MAORSI are standing at edge of a bearish crossover. But weekly stochastic is trying to generate a hope for bulls by creating a bullish crossover and its being supported by an expected weekly triple bottom at a supportive region. If this week index would not become able close below 41,400 points then this bullish expectation would be strengthened. For current trading session index have supportive regions at 41,860 and 41,450 points, while resistant regions are standing at 42,860 and 43,250 points. It’s recommended to wait for a clear breakout of either side before initiating trades for short or mid terms, but for current trading session its recommended to selling on strength with strict stop loss.