PSX Daily Market Review - 30th Nov. 2017

Trading volume at PSX floor increased by 1.91 million shares or 1.69% on DoD basis, whereas, the benchmark KSE100 Index opened at 39634.13, posted a day high of 39760.50 and a day low of 39462.71 during last trading session. The session suspended at 39672.89 with net change of 38.76 and net trading volume of 73.09 million shares. Daily trading volume of KSE100 listed companies increased by 4.15 million shares or 6.02% on DoD basis.
Foreign Investors remained in net selling position of 16.65 million shares and net value of Foreign Inflow dropped by 12.59 million US Dollars. Categorically, Foreign Individual, Corporate and Overseas Pakistani investors remained in net selling position of 0.13, 14.87 and 1.65 million shares respectively. While on the other side Local Brokers remained in net selling position of 2.03 million shares but Local Individuals, Companies, Banks, Mutual Funds and Insurance Companies remained in net buying position of 1.92, 6.38 0.96, 2.99 and 5.98 million shares respectively.

Asian shares fell on Thursday, weighed down by a plunge in high-flying technology shares, a move that some see as a healthy correction after a strong rally but others believe may herald the peak of a “super cycle” that has been boosting the sector. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dropped 0.5 percent, with technology bellwether Samsung Electronics (005930.KS) falling 2.9 percent to two-month lows. Japan's Nikkei .N225 dipped 0.3 percent, led by falls in Sony (6954.T), Murata manufacturing (6981.T) and other technology shares. Asia tech shares came under pressure after U.S. hi-tech giants plummeted.
In its first venture into foreign capital markets since the outbreak of major political turbulence in the country, the government managed to attract highest- ever bids in an auction of Pakistani debt. Bids worth over $8 billion were received for the two bonds that the government floated in New York on Wednesday: a five-year sukuk and a 10-year eurobond. The government raised $1bn through the sukuk at 5.625 per cent and $1.5bn via the euro bond at 6.875pc. Besides the high participation, yields were also lower compared to Pakistan’s last foray into international bond markets.
The Oil and Gas Regulatory Authority (Ogra) worked out on Wednesday an increase of Rs1.48 and Rs1.20 per litre in the prices of petrol and high-speed diesel (HSD), respectively, for December. The regulator also recommended an increase of Rs15.35 and Rs13.15 per litre in the prices of kerosene and light diesel oil (LDO), respectively. However, oil companies will be at will to set the end price of HSD after deciding the quantum of margins for themselves and dealers in view of a recent decision by the government to deregulate diesel rates. As such, if the regulators’ calculations are accepted, the price of kerosene will go up by 28.9 per cent while that of LDO by 26.8pc.
The government paid Rs445.4 billion on interest payment in only three months due to the massive borrowing made by the country in last few years. Interest payment exceeded the expenditures on country’s defence and development. The federal government paid Rs417.6 billion as servicing on domestic debt and Rs27.8 billion on foreign loans during first quarter (July-September) of the current fiscal year 2017-18, according to the official documents of the Ministry of Finance. Debt payment is rapidly increasing every year, as the successive governments took massive loans from the international financial institutions as well as from local banks. Pakistan’s total debt and liabilities stood at Rs25.1 trillion by the end of June 2017, which were equal to 78.1 percent of the GDP. The gross public debt, which is the responsibility of the government directly or indirectly, was Rs21.4 trillion or 68.1 percent of the GDP, according to the State Bank of Pakistan.
The Asian Development Bank’s Board of Directors has approved $140 million loan to help improve road networks and enhance road safety and road maintenance management in Khyber Pakhtunkhwa. Total cost of the project is $164 million, with the government of Pakistan contributing $24 million. The project is expected to be completed by the end of 2022. Road transport dominates Pakistan’s transport system, with almost 96% of freight traffic and 92% of passenger traffic passing through the road networks. Provincial roads , like those in Khyber Pakhtunkhwa, connect district centers with the national highway network and are vital in facilitating trade as well as providing access to health, education, and other public services.
Market is expected to remain volatile therefore its recommended to trade very cautiously.

The Benchmark KSE100 Index have penetrated its major supportive region of 39860 in bearish direction and also have closed below that support during last trading session therefore now that region would become first resistance against any reversal. As of right now index have supportive regions at 39400 and 38950 points. Major supportive region which could resist against current bearish trend is standing at 38680 points which is falling at 61.8% correction of its last bullish rally on weekly chart, that rally was started from 29785 and ended up at history high of KSE100 Index at 53127.24. Breakout of that supportive region would call for a new bearish trend which would lead index towards 35650 points on mid term basis. For current trading session its recommended to wait for a dip for new buying and post strict stop loss at 38956.