PSX Daily Market Review - 4th Dec 2018

Trading volume at PSX floor dropped by 106.42 million shares or 39.30% on DoD basis whereas the Benchmark KSE100 index opened at 40,383.27, posted a day high of 40,383.44 and day low of 39,015.62 during last trading session while session suspended at 39,160.60 with net change of -1335.45 points and net trading volume of 102.66 million shares. Daily trading volume of KSE100 listed companies dropped by 110.22 million shares or 51.78% on DoD basis.
Foreign Investors remained in net buying position of 3.64 million shares and net value of Foreign Inflow Increased by 0.53 million US Dollars. Categorically, Foreign Individuals, Foreign Corporate and Overseas Pakistani investors remained in net buying position of 0.07, 2.14 and 1.32 million shares. While on the other side Local Companies, Banks, Mutual Fund and Brokers remained in net selling positions of 7.34, 0.69, 19.43 and 0.02 million shares respectively, but Local Individuals, NBFCs and Insurance Companies remained in net buying positions of 15.12, 0.20 and 9.00 million shares respectively.

Asia shares ease as doubts emerge over Sino-U.S. trade war truce
Asian shares fell in early trade on Tuesday as a relief rally sparked by a truce in the U.S.-China trade war gave way to doubts on whether the two countries are able to resolve their differences before a 90-day deadline. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged down 0.2 percent as the Australian market gave up 0.5 percent and Seoul's Kospi .KS11 fell 0.6 percent. Japan's Nikkei stock index .N225 was 0.3 percent lower.
Experts believe govt allowed rupee devaluation
Although Ministry of Finance denies its role in fixing the exchange rate independent economists believe that State Bank of Pakistan allows the currency devaluation after getting green signal from top officials of the government. Background discussions with officials of the ministry and economists revealed that SBP was apparently autonomous in setting the exchange rate in the country but intervention of finance minister could not be overruled.
CAC Pakistan Summit kicks off
Agriculture sector is lifeline of Pakistan’s economy as it is contributing around 25 percent in economy, employing 42.3 percent of labor force and a major source of raw materials for several value added sectors, said Chinese and Pakistani experts. It was upshot of the speeches delivered by Chinese and Pakistani experts at CAC Pakistan Conference. Joint ventures and transfer of latest technology is pre-requisite to avail full benefits from the potential of Pakistani agriculture sector, they said.
Gas losses clock in at Rs48bn
Annual line losses — both technical and commercial — of the country’s two public sector gas companies have clocked in at Rs48 billion, forcing the petroleum ministry to devise an effective strategy to start reducing the same with immediate effect. “Sui Northern Gas Pipelines Limited (SNGPL) recorded a loss of Rs22bn and Sui Southern Gas Company (SSGC) 26bn,” Federal Minister for Energy (Petroleum Division) Ghulam Sarwar Khan told reporters at a press conference here on Monday.
Fix water quality in 7 days or face shutdown, CJP warns mineral water companies
Chief Justice of Pakistan Mian Saqib Nisar on Monday directed mineral water companies to pay the price of ground water and fix the quality of their water by next Monday, warning them that the companies would otherwise be shut down. While hearing a case regarding the use of ground water by mineral water companies at the Supreme Court, the top judge said that the judicial commission's report was inconclusive, adding that mineral water companies should have mercy on consumers.

The Benchmark KSE100 Index had succeeded in sliding below 40,500 points during last Friday which lead it towards a drastic bearish rally which would try to expand itself towards 38,200 points. As of now it’s expected that index would try to find some ground at 38,800 points on intraday basis because this region falls on a horizontal supportive region on and incase of breakout of this region 61.8% correction of last bullish rally would try to support index and this correction would complete at 38,500 points. It’s recommended to continue selling on strength until index settle on its supportive region because buying could result in huge losses if index would succeed in penetration of its these initial supportive regions which fall on 38,800, 38,500 and 38,191 points. While on flipside index would face strong resistance at 38,700 points in case of any reversal.
PSO have succeeded in sliding below its major supportive region of 266 Rs now it can slide towards 246-244 Rs region where it would find s strong supportive region but still selling on strength is recommended. TRG have slide below 27.95 which have reacted as a major supportive region previously and now this bearish rally seems to continue towards 25.60 initially and closing below that region would change its short term trend. ATRL have started a bearish rally after closing below its major support region of 200 Rs and now it’s expected that this rally would initially continue towards 173 where its 50% correction of last bullish rally would be completed. DGKC have entered into bearish zone after breakout of 97.60 on Friday and now it’s expected that its bearish rally would prolong towards 89 and 85.60 Rs initially. MLCF have again infiltrated into its bearish trend channel and its last hope for a bullish pull back is standing at 43.20 Rs.