PSX Daily Market Review - 4th Jan 2019

Trading volume at PSX floor dropped by 65.69 million shares or 49.15% on DoD basis, whereas the Benchmark KSE100 Index opened at 37,807.99, posted a day high of 37,928.37 and a day low of 37,374.05 during last trading session while session while suspended at 37,542.01 with net change -253.24 points and net trading volume of 46.1 million shares. Daily trading volume of KSE100 listed companies dropped by 41.95 million shares or 47.64% on DoD basis.
Foreign Investors remained in net selling positions of 1.4 million shares and net value of Foreign Inflow dropped by 0.05 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani investors remained in net selling positions of 0.95 and 0.44 million shares. While on the other side Local Individuals, Companies, Banks and Mutual Funds remained in net buying positions of 3.08, 1.3, 0.74 and 2.64 million shares respectively but Brokers and Insurance companies remained in net selling positions of 0.86 and 5.87 million shares.

China warnings signal Trump's trade war finally hitting home
Weak sales at Apple and Cargill, U.S. giants of technology and agriculture, may be the clearest sign yet that President Donald Trump’s quest to reset world trade carries costs at home and could isolate the United States as the increasingly fragile engine for global economic growth. Apple, a global technology darling loved for its sleek gadgets, on Wednesday warned of disappointing quarterly revenues because of poor sales in China. On Thursday, privately held grains trader Cargill announced worse-than-expected results out of China.
CDWP again defers approval of Nai Gaj Dam
The CDWP Thursday once again deferred the approval of Nai Gaj Dam project worth Rs 47,732.5 and instructed the Ministry of Water Resources to resolve designs issues and other observations regarding the project. The CDWP, which met with Minister for Planning, Development & Reforms and Deputy Chairman Planning Commission Makhdum Khusro Bakhtyar in chair, recommended to ECNEC the 2nd revision of Emergency Plan for Polio Eradication worth $986.3 million. Officials sources privy to the meeting told The Nation that serious issues were observed with the Nai Gaj Dam Project which includes its design, reluctance of government of Sindh to share the cost, and the underestimated cost of the project. It was estimated that the cost of the project will be Rs 47.73 billion but according the experts the cost will increase to Rs 70 to 75 billion said the source. Official of the Sindh government was not ready to share the cost of the project.
Power supply suspended to industry in Punjab
The industry in Punjab has been exposed to a severe loadshedding of electricity over the last 48 hours, as the power supply has been suspended to the production units attached with the independent feeders. As a result, production activities have been terminated and the workers are sitting idle outside the mills. The National Transmission and Despatch Company Limited (NTDC) has said that badly-affected power system by dense fog is being normalized gradually. The spokesperson of NTDC said that restoration work on 500 kV New Lahore-Balloki cckt is in progress which will take some time. While updating about the generation units, he said that Nishat Power 185 MW, Nishat Chunian 195 MW and KEL 124 MW are back on national grid, whereas, Saif Power 215 MW and Orient Power 200 MW have also started power generation. Furthermore, NTDC has managed to restore Balloki-New Lahore cckt and given demand to the management of Balloki Power House to bring the generation on bar. The NTDC engineers are also helping GENCO-II for replacement of transmission line equipment in switchyard of 747 MW Guddu Power House and also been given demand to generate 747MW since the transmission lines have been restored.
95 senior officers of FBR reshuffled
The government has reshuffled 95 senior officers of the Federal Board of Revenue (FBR) after facing massive shortfall of Rs170 billion in tax collection during six months (July to December) of the ongoing financial year. The FBR provisionally collected net revenue of over and above Rs 1,779 billion during first half (July-December) 2018-19 against target of Rs 1,949 billion, reflecting a shortfall of Rs 170 billion. The FBR provisionally collected Rs 1779 billion during first half (July-December) 2018-19 against Rs 1722 billion in same period of 2017-18, showing an increase of Rs 7 billion. The FBR could not achieve the tax collection target despite the fact that PTI led government had introduced mini budget in mid September. The federal government changed the top officials of the FBR following the tax shortfall.
PM asks Turkish traders to invest in Pakistan
Prime Minister Imran Khan on Thursday invited Turkish businessmen and investors to invest in various fields and industries in Pakistan, including construction, tourism and exploration of natural resources. Addressing the Turkish business fraternity at the Türkiye Odalar ve Borsalar Birligi in Ankara, the prime minister said the Belt and Road Initiative of China would bridge communication gap between Pakistan and Turkey and help increase trade between the two countries. Prime Minister Khan, accompanied by his economic team, is on his first official two-day visit to Turkey.

The Benchmark KSE100 Index is trying to find support at 61.8% correction of its last bullish rally which falls on a strong horizontal supportive region since last two trading sessions and chances of occurrence of an evening star have been expired in response to previous morning shooting star which was formatted on first day of this calendar year. Hourly momentum indicators are in bullish mode and they would try to push index upward during current trading session while weekly momentum indicators are ready for a bullish crossover and if today index would succeed in closing on positive node then this crossover would occur which would market sentiment for a shorter term. But daily momentum is mixed and today’s closing above 38,000 or 38,200 would pump some fresh air in market which may result in creation of a bullish engulfing on weekly chart if index would succeed in closing above 38,200 points. Some good volumes with volatile moves could be witnessed during current trading session because index is standing at a crucial level and if it would succeed in sliding below 37,000 points then a new bearish rally would be started which would lead index towards 36,400 and 35,900 points. It’s recommended to trade very cautiously with trailing stop loss on both sides during current trading session.