PSX Daily Market Review - 3rd Jan. 2018

Trading volume at PSX floor increased by 111.11 million shares or 93.95% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 40676.19, posted a day high of 41566.76 and a day low of 40534.79 during last trading session. The session suspended at 41486.87 with net change of 775.83 and net trading volume of 137.61 million shares. Daily trading volume of KSE100 listed companies increased by 86.2 million shares or 167.68% on DoD basis.
Foreign Investors remained in net buying position of 0.25 million shares and net value of Foreign Inflow increased by 0.82 million US Dollars. Categorically, Foreign Individuals remained in nForeign Investors remained in net buying position of 1.7 million shares and net value of Foreign Inflow increased by 2.59 million US Dollars. Categorically, Foreign Individual, Corporate and Overseas Pakistanis remained in net selling postions of 0.02, 1.63 and 0.05 million shares respectively. While on the other side Local Individuals, Coompanies, Brokers and Insurance Companies remained in net selling postions of 3.92, 1.74, 8.37 and 2.66 million shares respectively but Local Banks, NBFCs and Mutual Funds remained in net buying postions of 4.18, 1.11 and 10.05 million shares respectively.

Asian stocks struck a fresh decade high on Wednesday as risk appetites were whetted by a bevy of upbeat manufacturing surveys that confirmed a synchronized upturn in world growth was well under way. Activity was especially strong in Europe, lifting bond yields there and driving the euro to within a whisker of its highest in three years against a beleaguered U.S. dollar. Investors also piled into emerging market trades. MSCI’s index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up another 0.1 percent, having jumped 1.4 percent on Tuesday in its best performance since last March. The index is creeping ever closer to the all-time peak of 591.50 reached in late 2007. South Korean stocks .KS11 were up for the fourth session running, while Japan's Nikkei .N225 remained closed for holidays. Wall Street started the new year as it ended the old, scoring another set of record closing peaks. The Dow .DJI rose 0.42 percent, while the S&P 500 .SPX gained 0.83 percent and the Nasdaq .IXIC 1.5 percent.
The State Bank of Pakistan (SBP) on Monday made it clear that all arrangements for using Chinese yuan for bilateral trade as well as financing investment activity between Pakistan and China are already in place. On Dec 19, 2017, Minister for Planning and Development Ahsan Iqbal said that the government was considering a Chinese proposal to use renminbi (RMB or yuan) instead of the US dollar for payments in all bilateral trade between China and Pakistan. The decision was taken after rejecting a Chinese proposal to allow yuan as legal tender in Gwadar, Balochistan. “The SBP, in the capacity of the policy maker of financial and currency markets, has taken comprehensive policy related measures to ensure that imports, exports and financing transactions can be denominated in yuan,” said a statement issued by the SBP.
The Federal Board of Revenue (FBR) is back-pedalling on reform measures which were originally designed to block all loopholes in the tax administration system leading to revenue losses. The reform measures were evolved as part of the Tax Reforms Commission’s recommendations and were tasked to the Tax Implementation Reform Committee (TIRC) led by its chairman, Special Assistant to Prime Minister on Revenue Haroon Akhtar Khan. Talking to Dawn, an informed source within the FBR said the committee – which has a representation from the private sector – was not taken on board seriously by the tax authority’s top management.
Atlas Honda Ltd (AHL) on Tuesday increased the price of three models of its motorcycles by Rs500-1,000. With an addition of Rs1,000, effective from Jan 1, the Honda CG-125 and CG-125 Delux are now available at Rs107,500 and Rs126,500. The price of 100cc Pridor has been raied by Rs500 to Rs87,000. According to a dealer, prices of other models were left unchanged and no reason was mentioned by the company for the said move. He believed the the recent rupee depreciation against the dollar was the reason behind the price hike.The company sold 454,195 bikes in July-November 2017 compared to 374,558 units the same period last year, showed data released by Pakistan Automotive Manufacturers Association. In 2016-17, the company achieved sales of 960,105 units as compared to 811,034 units in 2015-16.
Punjab PDWP has approved five development schemes of public private partnership (PPP) & irrigation sectors with an estimated cost of Rs 9905.59m. The said schemes were approved in the 42nd meeting of PDWP of current fiscal year 2017-18 held under the chair of Chairman P&D M Jahanzeb Khan. The meeting was also attended by Secretary P&D Iftikhar Ali Sahoo, all members of the Planning & Development Board, provincial secretaries concerned, Assistant Chief P&D Coordination-II Hafiz Muhammad Iqbal and other senior representatives of the relevant provincial departments.
Its recommended to exercise caution while trading during current trading session.

The Benchmark KSE100 Index have given a clear breakout of its bearish trend channel and have recovered from that bearish trend after four months but right now its capped by a resistant trend line which could push index into a corrective zone if it would not become able to close above that trend line which is standing at 41840. If index would not become able to close above this region during current trading session then it would more strong resistance as a crossover of a trend line with a horizontal line would occure tomorrow which would cap currnet bullish rally. Its recommended to sell on strenght during current trading session.