PSX Daily Market Review - 4th May 2018

Trading volume at PSX floor increased by 13.02 million shares or 9.92% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 45,214.42, posted a day high of 45,258.13 and a day low of 44,556.99 during last trading session. The session suspended at 45,746.63 with net change of -449.74 and net trading volume of 73.75 million shares. Daily trading volume of KSE100 listed companies dropped by 8.99 million shares or 13.88% on DoD basis.
Foreign Investors remained in net selling position of 4.46 million shares and net value of Foreign Inflow dropped by 3.01 million US Dollars. Categorically, Foreign Individuals remained in net buying positions of 0.03 million shares but Foreign Corporate and Overseas Pakistanis Investors remained in net selling positions of 3.62 and 0.88 million shares. While on the other side Local Individuals, Banks, NBFCs, and Insurance Companies remained in net buying positions of 7.99, 1.27, 0.11 and 0.50 million shares but Local Companies and Mutual Fund and Brokers remained in net selling positions of 1.15, 1.54 and 7.71 million shares respectively.

Asia stocks fall, yen firm as markets await U.S. payrolls
Asian shares stepped back while the Japanese yen held onto overnight gains in early trading on Friday as financial markets turned their attention to the looming U.S. payrolls data for fresh catalysts.Investors were cautious after a largely weak performance on Wall Street overnight as some disappointing earnings reports offset strong economic data, while bond yields slid after a surprising slowdown in euro zone inflation. The U.S. dollar weakened during what was a choppy session a day after the Federal Reserve ended a policy meeting with no change in rates and a less hawkish statement than investors had anticipated. Disappointing U.S. company earnings, upbeat data on factory orders and the U.S. trade balance as well as the underwhelming eurozone inflation data made for a challenging trading environment.
Protest by local traders closes key CPEC entry point
Border trade with China through Khunjerab Pass has been suspended for over a month as traders have refused to clear their consignments through newly introduced Web-Based One Customs (WeBOC ) system at Sust Dry Port. The Khunjerab Pass owing to heavy snowfall remains closed from December to end of March every year under a border protocol agreement signed between the two countries. The Gilgit-Baltistan Chamber of Commerce and Industry (GBCCI) and other trade organisations are supporting the striking exporters and importers who have rejected the goods clearance system launched from April this season.
Barbs fly as water emergency intensifies
The Indus River System Authority (Irsa) on Thursday expressed its inability to oblige a demand from Sindh’s parliamentarians to immediately close down two link canals and stop filling Mangla dam to facilitate sowing of Kharif crops in the province. The water regulator told the Senate Special Committee on Water Scarcity that the matter needed to be taken up with Punjab where the water shortage was higher than Sindh. The committee, led by Senator Moula Bux Chandio of PPP, was constituted on an adjournment motion of Senator Sassui Palijo to look into the ‘emergency-like situation’ in Sindh due to water shortage. Ms Palijo, who was in the capital, could not make it to the meeting.
Total cotton output 11.58m bales: PCGA
Pakistan Cotton Ginners Association (PCGA) Thursday issued its final cotton report showing national cotton production at 11.581 million bales this year. Seed cotton (phutti) equivalent to 11.581 million bales had reached ginneries across Pakistan till May 1, 2018, said the final fortnightly report of PCGA. Out of total arrivals, over 11.578 million or 11,578,935 bales had undergone the ginning process. Arrivals in Punjab were recorded at 7.32 million, while in Sindh, the arrivals were recorded at 4.25 million bales. Total sold out bales were recorded at 11.3 million bales including 11.08 million bales bought by textile mills and another 216,615 bales purchased by exporters. Exactly 279,894 bales were still lying with the ginneries as unsold stock. Sanghar district of Sindh continued to remain on top with cotton arrival figures of 1.383 million bales till May 1, 2018. Rahimyar Khan and Bahawalpur in Punjab secured second, and third places by recording arrivals of 1,073,190 bales, and 1,029,043 bales, respectively. The report does not include cotton figures from district Kasur and the comparative analysis as the PCGA could not get data from there.
PIA to start new flights to China, Saudi Arabia
Pakistan International Airlines (PIA) is planning to start three new flights to China and Saudi Arabia. Spokesperson of the national flag carrier Mashood Tajwar told Radio Pakistan that PIA is intending to start a new flight for Chinese city Guangzhou and two flights for Taif and Al-Qasim cities of Saudi Arabia. He said the new Islamabad International Airport is equipped with the latest facilities and can accommodate more flights.

The Benchmark KSE100 Index had found support at a descending trend line after sliding below its major supportive region of 44,860 points during last trading session. As of now index would try to bounce back for an intraday spike during current trading session but momentum would remain negative and bears would try to add pressure at day end and would try to make it possible to close index below 45,096 at least if they would not succeed in pressing weekly closing below 44,860 points. Closing below 44,500 points on daily or weekly basis would call for a straight 1,000 points drop from current level and index would find ground at 43,400 points. But it’s expected that index would try to close with a slight positive momentum if succeeded to avoid a negative gap opening below 44,500 points. Weekly and Daily Stochastic and MAORSI are in negative mode but on hourly chart they are trying to generate bullish crossovers for an intraday pull back towards 44,980 and 45,136 points where index would face strong resistances. For current trading session its recommended to adopt swing trading with strict stop loss on both sides.