PSX Daily Market Review - 3rd Jan 2019

Trading volume at PSX floor increased by 36.98 million shares or 38.26% on DoD basis, whereas the benchmark KSE100 Index opened at 38047.0, posted a day high of 38449.04 and day low of 37710.38 points during last trading session while session suspended 37795.25 at with net change of -200.52 points and trading volume of 88.05 million shares. Daily trading volume of KSE100 listed companies increased by 24 million shares or 38.72% on DoD basis.
Foreign Investors remained in net selling positions of 1.68 million shares and net value of Foreign Inflow dropped by 0.23 million US Dollars during last trading session. Categorically, Foreign Corporate and Overseas Pakistanis Foreign remained in net selling positions of 0.10 and 1.72 million shares but Foreign remained in net buying positions of 0.14 million shares. While on the other side Local Companies, NBFCs and Mutual Fund remained in net buying positions of 1.41, 0.07 and 13.61 million shares respectively but Local Individuals, Banks, Brokers and Insurance Companies remained in net selling positions of 6.32, 0.72, 3.23 and 3.91 million shares.

China gains cushion Asian shares after Apple jolt; flash crash hits currencies
U.S. stock futures fell on Thursday after a rare revenue warning from Apple Inc added to worries about slowing global growth, but a move by China’s central bank to help struggling smaller firms lifted shares there, cushioning losses for Asian markets. The Cupertino, California-based tech giant blamed fewer iPhone upgrades and slowing sales in China in warning about revenues in its most recent quarter, its first such warning since 2007. Its shares (AAPL.O) tumbled 8 percent in after-hours trade.
Govt making all-out efforts to accelerate oil, gas exploration activities
Petroleum and Natural Affairs Division Wednesday said the government was making all-out efforts to accelerate oil and gas exploration activities, extending maximum facilities to exploration and production (E&P) companies operating in the country. “In future there will be clearance of vessels, drill ships and helicopters without any levy, duty or charges whatsoever including customs duty,” a press release said. This dispensation is extended to all companies and joint venture partners who are party to any Production Sharing Agreement with the government for offshore petroleum exploration and production activities, it added. Exploration company ENI along with Exxon Mobil will start drilling of an ultra-deep well in Kekra-I this month in deep sea waters under a specific weather window, it said. The equipment of both the companies, consisting of three platform supply vessels, two helicopters and one drilling ship, would be exempted from the customs duty.
CDWP meets today to discuss delayed Nai Gaj Dam
Central Development Working Party is meeting here Thursday (today) to discuss much delayed Nai Gaj Dam project with an escalated cost of Rs 46.55 billion. The cost of the project has increased by Rs 20 billion from the early estimated cost of Rs 26 billion to Rs 46.55 billion, official documents available with The Nation revealed.
Privatisation gone sour: Govt signed agreement to transfer PTCL properties ‘which don't exist'
The Senate Standing Committee on Information Technology and Telecommunications was briefed on Wednesday that at the time of privatisation of Pakistan Telecommunication Company Limited (PTCL) the then government had committed to transfer certain properties of the company which didn't even exist, DawnNewsTV reported. During the briefing before the standing committee chaired by Senator Rubina Khalid, the secretary of Privatisation Commission said that China Mobile had placed a bid of $1.4 billion while Etisalat had struck the deal for 26 per cent stakes in the company against $2.6 billion.
ECC orders smooth delivery of urea to farmers
Amid rising prices despite subsidised imported stocks, the Economic Coordination Com­­­mittee (ECC) of the Cabinet on Tuesday directed the Ministry of Industries and Production (MoIP) to chalk out a plan for continuous and smooth operation of urea plants in the country throughout the year. The meeting presided over by Finance Minister Asad Umar also could not take a conclusive decision on two other major agenda items — signing of fuel supply agreement with Azer­baijan and payment of dues to employees of Pakistan Machine Tool Factory — owing chiefly to lack of prior consultations.

The Benchmark KSE100 Index have reversed after posting a weekly double top and getting resistance from a horizontal resistant region during last trading session for an intraday correction and it would try to find some ground at 37,600 and 37,445 points where its 50 and 61.8 percent corrections would be completed. But still chances of weekly bullish engulfing are open this week if index would succeed in closing above 38,220 points on last trading day of this week, daily momentum indicators are still in bullish mode and these would try to feed index with some fresh blood because weekly indicators are trying to generate bullish crossovers, as of now only hourly momentum indicators are in bearish mode and if today index would find ground at its supportive regions then a cheat pattern would be generated for daily traders. Right now it’s expected that index would remain range bound between 38,440 and 37,415 points and it’s recommended to adopt swing trading strategy until index gave a clear breakout of either side. If index would succeed in closing below 37,415 then an evening star would be formatted on daily chart in response of the morning start formatted two days ago. It’s recommended to stay cautious and practice swing trading strategy during current trading session.