PSX Daily Market Review - 4th July 2018

Trading volume at PSX floor increased by 19.58 million shares or 23.17% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 41,738.36, posted a day high of 41,749.14 and a day low of 41,514.53 during last trading session. The session suspended at 41,564.42 with net change of -169.63 and net trading volume of 42.31 million shares. Daily trading volume of KSE100 listed companies dropped by 0.77 million shares or 1.80% on DoD basis.
Foreign Investors remained in net selling position of 1.02 million shares but net value of Foreign Inflow increased by 0.06 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in net buying positions of 0.04 and 0.77 million shares but Foreign Corporate investors remained in net selling positions of 1.83 million shares. While on the other side Local Companies, Banks and NBFCs remained in net buying positions of 3.47, 8.86 and 0.27 million shares but Local Individuals, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 0.51, 9.41, 4.15 and 2.33 million shares respectively.

Asian shares, yuan on shaky ground on specter of Sino-U.S. trade war
Asian stocks were on shaky ground on Wednesday while the Chinese yuan stood near 11-month lows as the specter of a Sino-U.S. trade war haunted investors ahead of an end-of-week deadline for U.S. tariffs on billions of dollars worth of Chinese imports. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1 percent in early trade, a day after it hit a nine-month low. Japan’s Nikkei lost 0.5 percent. Wall Street dropped on Tuesday, giving up early gains in a truncated session ahead of the Independence Day holiday on Wednesday, while technology shares came under pressure just a day after their solid start for the quarter on Monday. The S&P 500 lost 0.49 percent while the Nasdaq Composite dropped 0.86 percent.
Azerbaijan lauds CPEC project
The CPEC project (China-Pakistan Economic Corridor) is significant for Azerbaijan, due to fact that thanks to this project Azerbaijan can export goods to China. Ambassador of Pakistan to Azerbaijan Sajid Khan Mohmand said that the goods can be sent to China from Astrakhan via Azerbaijan, Iran and Pakistan. "We are also expanding the main seaport of Gwadar. By 2025, the port can accept more and more large vessels, and there are transport corridors within the Lapis Lazuli project and the Ashgabat agreement that connect Azerbaijan with Pakistan and Central Asia, all of which can be of great importance for Azerbaijan," the ambassador was quoted as saying by Azerbaijani newspaper "AzerNews" on Tuesday.
Consumers paying Rs180b circular debt, MPs told
A special parliamentary committee was Tuesday informed that Rs180 billion of the circular debt is being recovered from the power consumers in shape electricity surcharge. On December 2017 the circular debt was Rs514 billion and previous government had borrowed Rs180 billion to finance it which is now being recovered from the electricity consumers in their power tariff, said an official of the Finance Ministry while briefing the Senate Special Committee on Circular Debt . The Senate Special Committee on Circular Debt that met here on Tuesday with Senator Shibli Faraz in the chair, noted that the government has neither encouraged alternate energy sources nor supported the private sector to initiate such projects. Senator Shibli Faraz said that the government had deliberately discouraged this sector, as to provide room for the use of costly energy.
Water shortage in Sadpara Dam triggers alarm
The district administration of Astore has issued an alert call and sought suggestions from all the stakeholders to cope with any situation after acute shortage of water was reported in Sadpara Dam. The administration here on Tuesday said water level in Sadpara Dam has fallen to alarming level that may trigger the issue of outages and water crises in the area. Owing to the situation, the administration has sought suggestions and appealed for cooperation from the local community. The administration warned that supply of electricity, generated through the dam may be affected badly from the month of Sept besides creating shortage of water for the drinking and irrigation purposes.
Ministry notifies civil servants' budget incentives
The Ministry of Finance on Tuesday has notified the incentives for civil servants as announced in budget 2018-19 including increasing salaries by 10 percent and also enhancing the house rent. "The President has been pleased to sanction with effect from 1st July, 2018 and till further orders, an Adhoc Relief Allowance-2018 @ 10 percent of basic pay to all the civil employees of the Federal Government as well as the civilians paid from Defence Estimates including contingent paid staff and contact employees employed against civil posts in Basic Pay Scales on standard terms and conditions of contract appointment," said an official notification issued by the ministry.

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.