PSX Daily Market Review - 4th Oct 2018

Trading volume at PSX floor dropped by 16.52 million shares or 15.51% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 40,818.60, posted a day high of 40,836.21 and a day low of 40,473.39 during last trading session. The session suspended at 40,560.19 with net change of -240.06 and net trading volume of 52.64 million shares. Daily trading volume of KSE100 listed companies dropped by 13.96 million shares or 20.96% on DoD basis.
Foreign Investors remain in net selling positions of 0.14 million shares but net value of Foreign Inflow increased by 0.01 million US Dollars. Categorically Foreign Individuals and Overseas Pakistanis remained in net buying positions of 0.01 and 0.81 million shares but Foreign Corporate investors remained in net selling positions of 0.68 million shares. While on the other side Local Individuals, Banks, Mutual Fund and Brokers remained in net selling positions of 2.05, 0.06, 1.77 and 1.95 million shares respectively but Local Companies, NBFCs and Insurance Companies remained in net buying positions of 3.23, 0.18 and 0.62 million shares.

Global stocks firm, U.S. Treasury yields soar, oil at four-year high
Stock markets around the world were up slightly on Wednesday amid signs that Italy would cut its budget deficits in coming years, but U.S. Treasuries yields hit multi-year highs after strong U.S. jobs data, while oil prices saw 4-year highs ahead of U.S. sanctions on Iran exports. On Wall Street, the Dow Jones Industrial Average rose to a record high helped by U.S. data showing private sector payrolls saw the biggest monthly gain since February. Financial stocks gained from a rebound in European markets and rising Treasury yields. The Dow Jones Industrial Average rose 54.45 points, or 0.2 percent, to 26,828.39, the S&P 500 gained 2.08 points, or 0.07 percent, to 2,925.51 and the Nasdaq Composite added 25.54 points, or 0.32 percent, to 8,025.09.
Direct action on gas thieves helped SSGC save 994MMCF
Since the last one year, SSGC has drastically intensified its drive against the gas theft miscreants by tasking decisive actions in accordance with the Gas (Theft and Recovery) Act 2016. Ever since its formation in July 2017, the revamped Security Services and Counter Gas Theft Control Operations Department has conducted around 950 raids on domestic, commercial and industrial customers and aided by SSGC Police have arrested several miscreants besides lodging FIRs on regular basis, with the result that these actions have helped save natural gas worth 994 MMCF to date (Rs 755 million).
NHA retrieves land worth Rs221 million
The National Highway Authority has retrieved more than 16 kanals land worth Rs.221 million as part of its 75 days anti-encroachment campaign across the country. The NHA is removing encroachments from its Right-of-Way (ROW) at rapid speed. About 224 encroachments have been removed to date. More than 16 kanals land worth Rs221 million has been got vacated from occupants. As per details, 36 encroachments are removed from Multan having land of 65 marlas amounting to Rs14.5 million. In Bahawalpur, 15 encroachments are demolished from 20 marlas land worth Rs6 million.
Pakistan, Italy agree to extend timeline of PIDSA
Pakistan and Italy on Wednesday agreed to further extend the timeline of the Pak-Italian debt for Development Swap Agreement (PIDSA), till June 30, 2020 through exchange of letter (EoL), for the successful implementation of all the PIDSA operations including cancellation of the remaining debt amount. Pak-Italian debt for Development Swap Agreement (PIDSA) was signed between the Government of Italian Republic and the Government of the Islamic Republic of Pakistan on November 4, 2006.
JWC on industrial cooperation under CPEC formulated
The joint working group (JWC) on industrial cooperation under China Pakistan economic Corridor has been formulated and chairman Board of Investment (BoI) has been appointed the convener of this working group, Senate standing committee on industries and production was told on Wednesday. Senator Kulsoom Parveen, while lamenting the deplorable state of Steel Mills, said that the government must do all in its power to revive this enterprise. Chairman Committee Senator Ahmed Khan directed that a detailed meeting must be held on Steel Mills.

PSO, DGKC, MLCF, SNGP and ISL would try to lead negative momentum in market during current trading session.

The Benchmark KSE100 index have initially penetrated its triangle in downward direction on daily chart and right now its heading towards last hope for bulls which falls on a horizontal supportive region at 40,360 points. Daily momentum indicators have changed their direction to bearish side and these would try to add further pressure on index. Index would try to open with a negative gap below 40,520 points during current trading session and if it would succeed in doing so then first trading hour would be very crucial because hourly closing below 40,500 would try to drag index towards 40,360 and 40,100 points. Weekly momentum is also trying to generate a bearish cross over and these crossovers would lead index towards 39,800 and 37,600 points in coming days. On flip side index have resistant regions ahead at 40,960 and 41,300 points. It’s recommended to initiate selling on strength with strict stop loss during current trading session.
PSO, DGKC, SNGP and ISL would try to add pressure on index because they have succeeded in trading below their major supportive regions. PSO would remain bearish until it would succeed in penetrating above 323 or 327 Rs, while DGKC will try to target 89 Rs after sliding below 97.30 Rs because it have a strong resistant region ahead at 101 Rs. SNGP and ISL will remain bearish below 89 and 96 Rs.