PSX Daily Market Review - 3rd Dec 2018

Trading volume at PSX floor Increased by 173.37 million shares or 177.96% on DoD basis whereas the Benchmark KSE100 index opened at 40,625.67, posted a day high of 40,936.73 and day low of 40,339.93 during last trading session while session suspended at 40,496.03 with net change of -142.80 points and net trading volume of 212.88 million shares. Daily trading volume of KSE100 listed companies Increased by 159.57 million shares or 299.29% on DoD basis.
Foreign Investors remained in net selling position of 21.29 million shares and net value of Foreign Inflow dropped by 32.64 million US Dollars. Categorically, Foreign Individuals, and Overseas Pakistani remained in net buying position of 0.05 and 2.25 million shares but Foreign Corporate investors remained in net selling position of 23.59 million shares. While on the other side Local Companies, NBFCs, Mutual Fund and Insurance Companies remained in net buying positions of 7.83, 0.19, 7.07 and 12.84 million shares respectively, but Local Individuals, Banks and Brokers remained in net selling positions of 5.30, 0.18 and 1.70 million shares respectively.

SBP raises interest rate by 150bps to 10 percent as rupee fall fans inflation fear
The State Bank of Pakistan (SBP) on Friday ramped up its benchmark interest rate by a more-than-expected 150 basis points to 10 percent, after the rupee hit new lows but analysts said the increase is likely to put a further dent in economic growth, which has already trimmed to little over 4 percent for the fiscal 2019.
FBR faces Rs111 billion revenue shortfall in July-November
The FBR envisaged tax collection of Rs1.479 trillion in the July-November period. And, the revenue shortfall stood at Rs111 billion during the period. In November, the provisional collection stood at Rs250 billion as against the envisaged target of Rs313.240 billion, depicting a shortfall of around Rs63 billion. .
Prices of petroleum products reduced
The government has decreased petroleum prices from Rs 2 to Rs 5 per litre and accused the previous government of harming the industry by artificially controlling the rupee against the US dollar at a certain level. Addressing a press conference along with Minister of Planning Khusro Bakhtyar and Minister of State for Revenue Hammad Azhar on Friday, Finance Minister Asad Umar announced that price of petrol and diesel has been decreased by Rs 2 per litre, kerosene oil''s by Rs 3 per litre while price of light diesel oil has been reduced by Rs 5 per litre. .
Honda jacks up bike prices for sixth time
Atlas Honda Ltd (AHL) has increased the prices of bikes for the sixth time this year by Rs2,600-8,000 from Dec 1. The prices of CD-70cc and CD-Dream have been raised by Rs2,600 to Rs69,500 and Rs73,500, respectively, Pridor by Rs3,100 to Rs95,500, CG-125 by Rs3,600 to Rs114,500. The highest rate jump was in CB150F by Rs8,000 to Rs187,000.
Government borrowing from SBP rises by 81 percent
The federal government borrowing from State Bank of Pakistan (SBP) rose by 81 percent and reached Rs 6.655 trillion by November 16, 2018 following an increase of Rs 2.988 trillion in the first four and half a months of the current fiscal year. Official data of SBP for the period of July-November 16, 2018 reveals that federal government borrowed Rs 2.988 trillion during the first four and half a months of the current fiscal year as opposed to Rs 407.336 billion in the same period of last fiscal year.

The Benchmark KSE100 index have succeed in sliding below 40,500 points during last trading session after a volatile trading session and it’s expected that index would remain under pressure and targets would widen on downward side as it would try to target 40,063 points on intraday basis. While on the flipside index would face resistance at 40,760 points therefore it’s recommended to initiate selling on strength with strict stop loss of 41,250 points.