PSX Daily Market Review - 4th Sep 2018

Trading volume at PSX floor dropped by 0.63 million shares or 0.40% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 41,731.76, posted a day high of 41,731.76 and a day low of 41,196.36 during last trading session. The session suspended at 41,581.96 with net change of -160.28 and net trading volume of 80.84 million shares. Daily trading volume of KSE100 listed companies dropped by 7.66 million shares or 8.65% on DoD basis.
Foreign Investors remain in net selling positions of 8.38 million shares but net value of Foreign Inflow dropped by 4.00 million US Dollars. Categorically Foreign Individuals and Overseas Pakistanis remained in net buying positions of 0.05 and 0.90 million shares but Foreign Corporate investors remained in net selling positions of 8.52 million shares. While on the other side Local Individuals, Brokers and Insurance Companies remained in net buying positions of 11.40, 3.94 and 7.12 million shares respectively but Local Companies, Banks and Mutual Fund remained in net selling positions of 4.86, 1.82 and 6.79 million shares.

Asian shares fall under pressure from trade, emerging markets worries
Asian shares fell in early trade on Tuesday, amid growing concerns over escalating international trade disputes and as emergency austerity measures in Argentina highlighted turbulence in emerging markets. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.2 percent after European shares ended mostly flat, though a weak British pound helped to lift London's blue-chip FTSE .FTSE almost 1 percent. Japan's Nikkei .N225 slid 0.3 percent and Australian shares were 0.2 percent lower. Growing turbulence in Argentina once again focused global attention on emerging markets. On Monday, Argentine President Mauricio Macri announced new taxes on exports and steep cuts to government spending in what he termed “emergency” measures to balance next year’s budget. U.S. markets were closed on Monday for Labor Day.
LPG mafia looting public amid govt silence
Amid silence of the government, the LPG marketing companies continue to cause millions of rupees daily losses to consumers by selling overpriced liquid petroleum gas. The 11.8 kg domestic cylinder is being sold at Rs 2000 against its actual OGRA notified cost of Rs 1,613.43, for the month of September 2018. Taking advantage of absence of government, during last some weeks, the gas marketing companies in connivance with regulator not only kept the official prices increasing but also looted public by supplying gas at black rates and the regulator remained indifferent. According to official data, the per month peak consumption of LPG crosses 101371 metric tonnes while the daily consumption is between 3000-3200 tonnes.
Railways planning to utilise barren land
Pakistan Railways is planning to utilise its nearly eleven thousand acres barren land across the country, by executing various projects to earn more revenue for the department. Sources in the Ministry said Pakistan Railways has over eight thousand acres barren land in Punjab, over thirteen hundred acres in Khyber Pakhtunkhwa, two hundred sixty in Sindh and nearly nine hundred acres land in Balochistan. The source said Pakistan Railways had leased out over fifteen thousand acres land for various purposes across the country and more than three thousand three hundred acres land is under encroachments of different govt departments and individuals.
ADB approves $100m loan to address water shortages
The Asian Development Bank’s (ADB) Board of Directors has approved a $100 million loan to address chronic water shortages and increase earnings on farms in Balochistan, Pakistan’s largest and poorest province. The Balochistan Water Resources Development Sector Project will focus on improving irrigation infrastructure and water resource management in the Zhob and Mula river basins. Agriculture accounts for almost two-thirds of Balochistan’s economic output and employs 60% of the province’s 13 million population, but frequent drought and poor water management has put the industry, and those who rely on it, at risk. Poverty rates in the province are almost double the national average. “Agriculture is the backbone of Bolochistan’s economy,” said ADB Principal Water Resources Specialist Yaozhou Zhou. “This project will build irrigation channels and dams, and introduce efficient water usage systems and practices, to help farmers increase food production and make more money.”
MPs for accelerating work on western route of CPEC
A parliamentary committee was Monday informed that the non-provision of PSDP allocations by the federal government and the delay by China in the approval of projects is affecting work on the western route of CPEC. Meanwhile, parliamentarians have directed the government to accelerate work on the western route of CPEC. The government has not released the PSDP allocated funds for the CPEC projects which has brought work on the roads projects to stand still, said an official of the Ministry of Communication while briefing the Senate Standing Committee on Planning, Development and Reforms here. The Senate standing committee that met with Senator Agha Shazeb Durrani in chair was informed that due to lack funds and delay in releases work on the western route of CPEC from Hakla to DI Khan could not be started. Similarly, delay on the part of China in the approval of project construction work on the western route from D.I.Khan to Zhob is affecting work. The committee discussed the latest situation and implementation status of CPEC projects.

The Benchmark KSE100 Index have got support from a descending trend line and daily momentum indicators are trying to start a bullish reversal but this would be confirmed once index would succeed in closing above 42,300 points and before that region index have strong resistances ahead at 41, 800 and 41960 points. On hourly chart index have shown a health recovery before closing of last trading session but this could be a correction of last bearish run therefore it needs to be very cautious while initiating long positions at current level. It’s expected that index would continue its bearish rally after an intraday spike therefore it’s recommended to initiate selling on strength before 41,900 with strict stop loss of 4,300 points.