PSX Daily Market Review - 3rd May 2018

Trading volume at PSX floor dropped by 117.35 million shares or 47.21% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 45,471.74, posted a day high of 45,484.39 and a day low of 45,166.89 during last trading session. The session suspended at 45,196.37 with net change of -292.49 and net trading volume of 64.76 million shares. Daily trading volume of KSE100 listed companies dropped by 91.19 million shares or 58.47% on DoD basis.
Foreign Investors remained in net selling position of 0.06 million shares and net value of Foreign Inflow dropped by 1.23 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in net buying positions of 0.02 and 1.0 million shares but Foreign Corporate Investors remained in net selling positions of 1.08 million shares. While on the other side Local Companies and Insurance Companies remained in net buying positions of 9.19 and 2.09 million shares but Local Individuals, Banks, Mutual Fund and Brokers remained in net selling positions of 10.29, 2.65, 1.90 and 0.93 million shares respectively.

Treasury Secretary arrives in Beijing for trade talks, China media cautious
U.S. Treasury Secretary Steven Mnuchin arrived in Beijing on Thursday for key trade talks, with Chinese state media saying China will stand up to U.S. bullying if needed but that it was still better to hash things out around the negotiating table.A breakthrough deal to fundamentally change China’s economic policies is viewed as highly unlikely during the two-day visit, though a package of short-term Chinese measures could delay a U.S. decision to impose tariffs on around $50 billion worth of Chinese exports. The discussions, led by Mnuchin and Chinese Vice Premier Liu He, are expected to cover a wide range of U.S. complaints about China’s trade practices, from allegations of forced technology transfers to state subsidies for technology development.
Pakistan wants to increase African trade via Kenya, says Pervaiz
Federal Minister for Commerce and Textile Pervaiz Malik on Wednesday said that Pakistan wants to increase trade and economic cooperation with Kenya as it is the gateway to many African counties, where there is big demand for Pakistani goods. In search of new potential markets, Pakistan had already launched ' Look to Africa' initiative in November 2017. Pakistan and Kenya Joint Ministerial Committee has been formed with this objective, he said while speaking at the first session of two-day 'Kenya Pakistan Trade and Investment Conference' here. Led by Kenyan Cabinet Secretary, Foreign Affairs and International Trade, Dr Monica Jumma, the delegation included senior officers of trade related departments of Kenya and representatives of its private sector. The minister said it was common desire of both the countries to get socio-economic development through exchange of information and technologies, and sharing experiences in various fields.
CDWP approves 31 projects of Rs713b
The federal government has reduced the non-tax revenues target by Rs208 billion for the next fiscal year (FY2019), as Pakistan has excluded the Coalition Support Fund (CSF) receipts from the United States from budget estimates. The government has targeted to generate Rs771.9 billion from the non-tax revenues during FY2019 as against budgeted estimates of Rs979.9 billion of the outgoing fiscal. Meanwhile, the government has also revised downwards its non-tax collection target to Rs845.2 billion for the current fiscal year from the budgeted estimates of Rs979.9 billion. The government has estimated not to receive CSF amount during ongoing as well in upcoming year, which resulted in reducing the target of non-tax revenues. The break-up of Rs771.9 billion showed that government would receive Rs236.9 billion as income from property and enterprise, Rs305.8 billion from receipts from civil administration and Rs229.2 billion from miscellaneous receipts during FY2019.
Neelam-Jhelum project experienced four calamities
The Neelam-Jhelum Hydropower project has experienced four major natural disasters during its construction in the past ten years, Feng Xinglong, chairman of China's Gezhouba Group said. Feng said each disaster had pushed the project to the brink of failure. He said in 2010, a major flood in 100 years occurred in Pakistan, and facilities were destroyed in the entire tender area; in 2014, floods were re-emerged, and the stilling pools under construction were submerged; in 2014, water was poured through tunnels in river sections; and in 2015, a tunnel boring machine encountered a strong rock burst, resulting in buried equipment and extensive damage to parts. Faced with the catastrophic situation, Chinese builders relied on their excellent skills and tenacious spirit, he added.
Pak-Afghan trade via Torkham cut to $500m from $2.5b
T Pakistan and Afghanistan trade via Torkham border has decreased to $500 million from $ 2.5 billion due to governmental stringent policies, political problems and repeated and long closures of the border. This was stated by KP Chamber of Commerce and Industry President Zahid Ullah Shinwari while talking to journalists during his visit to Torkham Custom Office here on Wednesday. He said "The anti-business policies of the government have not only suffered businessmen but also has inflicted a huge loss to national exchequer as the government has been deprived of revenue in the form of taxes." Shinwari warned that if such governmental policies are not revised the trade between two Islamic countries would come to an end. "Because of anti-trading policies, adopted by the Pakistani government pertaining business with Afghanistan, the Afghan traders have started to work with other countries like Iran, India and China," the KPCCI president said.

The Benchmark KSE100 Index had bounced back after completing its 38.2% bearish correction and now it’s heading for expansion of said correction but before completion of said expansion index have supportive region between 45,155 till 45,096 points from a strong horizontal supportive region. Daily and weekly momentum is still in bearish mode but an intraday spike could be witnessed during current trading session because hourly momentum indicators are trying to put some force against current bearish rally. If index would not become able to sustain above 44,860 points then a gap of further 500 points would be available for bears. Technically, it’s not a good time for new buying until a clear indication of reversal is generated on daily or weekly chart. On short term basis if index would slide below its current supportive regions and closed below 44,860 points on weekly chart then next targets would be 44,520 points and 43,400 points. In case of a bullish pull back index would face resistances around 45,560, 45,900 and 46,096 points in coming days. It’s recommended to stay side line during current trading session.