PSX Daily Market Review - 4th Feb 2019

Trading volume at PSX floor dropped by 10.61 million shares or 4.43% on DoD basis, whereas the benchmark KSE100 index opened at 40,810.70, posted a day high of 41,207.97 and a day low of 40,793.36 points during last trading session while session suspended at 41,112.71 with net change of 313.18 points and net trading volume of 127.55 million shares. Daily trading volume of KSE100 listed companies increased by 1.67 million shares or 1.33% on DoD basis.
Foreign Investors remained in net buying positions of 5.23 million shares and net value of Foreign Inflow increased by 3.47 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistanis investors remained in net buying positions of 4.39 and 0.83 million shares. While on the other side Local Individuals and NBFCs remained in net buying positions of 8.52 and 0.51 million shares but Local Companies, Banks, Mutual Funds, Brokers and Insurance Companies remained in net selling positions of 3.22, 2.53, 2.64, 0.52 and 5.51 million shares respectively.

Asia stocks quiet, dollar firm after upbeat U.S. job data
Asia stocks hovered near four-month highs on Monday after a mixed performance on Wall Street at the close of last week, while the dollar firmed against the yen following strong U.S. job and manufacturing data. MSCI’s broadest index of Asia-Pacific shares outside Japan was almost flat. It had scaled a four-month peak on Friday along with a surge in its global peers. Trade was subdued with many of the region’s markets closed for the Lunar New Year. China’s financial markets are closed all week, while those in South Korea are shut until Thursday.
Roadshows to entice expats into buying Pakistan Banao Certificates
The government of Pakistan, in a bid to bring direct investment home to strengthen country’s foreign reserves, will kick off roadshows in various countries within a couple of weeks. “The campaign, to be initiated from Great Britain will also cover Europe and Gulf countries, is aimed at convincing overseas Pakistanis buy ‘Pakistan Banao Certificates’, (PBC) which is a US dollar denominated retail instrument for expats offering attractive incentives,” said Special Assistant to PM on Overseas Pakistanis Syed Zulfikar Bukhari in an exclusive chat with APP.
Work at 1,630MW projects under CPEC afoot
Two separate hydropower stations being completed under the China-Pakistan Economic Corridor (CPEC) framework will generate 1,620 MW electricity and are likely to start commercial operation in next three years. The under-construction Karot Hydropower station with an installed capacity of 760 MW at river Jhelum at a juncture of Azad Kashmir and Punjab province is expected to start commercial operation by December 2021.
7.23pc less cotton bales reach ginneries
Seed cotton (Phutti) equivalent to 10.6 million bales have reached ginneries across Pakistan till February 1, registering a shortfall by 7.23 per cent compared to corresponding period of last year. Out of total arrivals, 10,546,192 bales have undergone the ginning process, says a fortnightly report of Pakistan Cotton Ginners Association (PCGA) issued here Sunday. Arrivals in Punjab were recorded at over 6.461 million bales showing a 10.03 per cent shortfall and over 4 million or 4,251,721 bales in Sindh registering 2.52 per cent shortfall compared to corresponding period of last year. Total sold out bales were recorded at over 9.1 million or 9,115,798 bales including over 9 million or 9,014,898 bales bought by textile mills and another 100,900 bales purchased by exporters.
Provinces’ stance on the NFC
THE provinces are not inclined to lay their cards on the table at this point as they are probably still in the process of articulating their stance on the vertical and horizontal sharing of resources and the special separate pool for security and other needs. The marathon meetings for the eighth National Finance Commission (NFC) Award are expected to kick-start this week. Many members of the proposed meeting expressed cautious optimism but conceded that the process may be long as both inter-provincial and the centre-provinces resource sharing arrangement might have to be altered.

The Benchmark KSE100 Index have penetrated above its major resistant region of 40,860 points during last week and a bullish engulfing pattern have been formatted on monthly chart which is a very strong bullish reversal indication but as of now index is being capped by a horizontal resistance along with a descending trend line on daily and weekly chart at 41,260 and 41,500 points therefore its recommended to stay cautious around these levels because if index would not succeed in closing above theses regions during current trading session then 41,800 would react as a major resistant region in coming days. It’s recommended to adopt swing trading strategy until index close above 41,800 points. Penetration of 41,800 points in upward direction would call for 42,600 and 44,000 points in this month.