PSX Daily Market Review - 3rd July 2018

Trading volume at PSX floor dropped by 81.58 million shares or 49.12% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 41,948.67, posted a day high of 42,134.83 and a day low of 41,611.90 during last trading session. The session suspended at 41,734.05 with net change of -176.85 and net trading volume of 43.09 million shares. Daily trading volume of KSE100 listed companies dropped by 47.63 million shares or 52.50% on DoD basis.
Foreign Investors remained in net buying position of 0.72 million shares but net value of Foreign Inflow dropped by 0.69 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in net buying positions of 0.07 and 1.66 million shares but Foreign Corporate investors remained in net selling positions of 1.01 million shares. While on the other side Local Individuals, Local Companies, Banks, NBFCs and Insurance Companies remained in net buying positions of 2.54, 1.74, 2.30, 0.02 and 0.44 million shares but Mutual Fund and Brokers remained in net selling positions of 1.62 and 6.07 million shares respectively.

Asian shares falter, China under renewed pressure on trade war fears
Asian shares dropped in tentative morning trade on Tuesday as sentiment remained fragile in the face of tense trade relations between the United States and major economies, with investors braced for another potentially rocky day for Chinese markets. Investors, worried the trade row could derail a rare period of synchronized global growth, have pulled out of riskier assets in the past month or so. The Asia Pacific MSCI index ex-Japan dropped 0.66 percent on early Tuesday trade, while Japan’s Nikkei average was little changed. In China, the Shanghai Composite Index shed 0.23 percent and the blue chip CSI300 index fell 0.19 percent.
New head office of PHDEC inaugurated
Commerce secretary Younus Dagha has inaugurated the new head office of the Pakistan Horticulture Development and Export Company (PHDEC) at the FPCCI’s capital office in Islamabad. FPCCI president Ghazanfar Bilour, PHDEC chairman Fuad Ishaq, acting CEO of PHDEC Muhammad Ashraf, the senior officers of the Ministry of Commerce and members of Board of Directors of the company were present on the occasion. “I would like to underline that Ministry’s vision for the PHDEC is to make it a model sector-specific business support organisation in the public sector, which can be replicated for other sectors also”, he said. The CEO made a detailed presentation to the secretary and the Board on the work plan of the company for the coming year. The secretary appreciated the work plan and advised the company to develop a National Horticulture Export Strategy which, inter alia, included an added emphasis on development of floriculture sub-sector besides the fruits & vegetables.
Tea import grows by 6.7pc
The tea imports into the country witnessed increase of 6.76 percent during the first eleven months of the fiscal year 2017-18 as against the corresponding period of last year. The tea imports into the country during July-May (2017-18) were recorded at $524.018 million against the imports of $490.848 million during July-May(2016-17), according to Pakistan Bureau of Statistics (PBS). In terms of quantity, the tea imports, however, witnessed negative growth of 4.80 percent by declining from imports of 183,791 metric tons last year to 174,968 metric tons during the current fiscal year, the data revealed.
SSGC conducts more raids to uproot menace of gas theft
SSGC’s Counter Gas Theft Operations (CGTO) team has intensified its drive against miscreants involved in blatant use of gas theft in its franchise areas in Sindh and Balochistan. As part of the Operation Grift, the team conducted around 35 raids during the last three days in Karachi and made numerous illegal disconnections. A raid was conducted in a hotel located in Karachi’s F.B. Area where the offenders were found using gas directly through rubber pipe. The load found at the site was approximately 75 cubic feet per hour. The hotel owner was apprehended in accordance with the Gas (Theft and Recovery) Act 2016; FIR was lodged and subsequently claim was generated against the miscreant. Similarly more than 30 domestic connections were dismantled in F.B. Area where gas was being used directly through main line.
Fertilisers exports grow by massive 632pc
Fertilisers exports from the country during 11 months of the fiscal year ended on June 30 witnessed tremendous growth of 632.74 percent as compared to exports of the corresponding period of last year. During the period from July-May, 2017-18, about 234,145 metric tons of fertilisers worth $51.321 million were exported as compared to exports of 30,124 metric tons valuing $7,004 of same period last year. Meanwhile, the country also earned $957.940 million by exporting other chemicals and pharmaceutical products, which stood at $784.800 million in the corresponding period of last year, said the data of Pakistan Bureau of Statistics.

The Benchmark KSE100 Index is trying to continue its bullish rally on hourly chart but chances of evening star on daily chart are still intact and index have major resistances ahead at 42,310 and 42,950 points from its 50% correction along with major horizontal resistant regions. It’s also capped by a descending trend line on daily chart which is generating a crossover with a horizontal resistant region at 42,310 points and these both elements would create a strong resistance for the index. Weekly momentum is already in bearish mode therefore it’s recommended to initiate selling on strength with strict stop loss of 42,310 initially. On supportive side index have supportive regions at 41,000 and 40,900 points.