PSX Daily Market Review - 5th April 2018

Trading volume at PSX floor dropped by 12.46 million shares or 4.41% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 46,058.24, posted a day high of 46,447.91 and a day low of 46,037.54 during last trading session. The session suspended at 46,103.61 with net change of 90.27 and net trading volume of 148.45 million shares. Daily trading volume of KSE100 listed companies increased by 12.71 million shares or 9.36% on DoD basis.
Foreign Investors remained in net buying position of 2 million shares and net value of Foreign Inflow increased by 4.18 million US Dollars. Categorically, Foreign Individual and Corporate Investors remained in net buying position of 0.02 and 2.73 million shares but Overseas Pakistanis remained in net selling position of 0.75 million shares. While on the other side Local Individuals, Companies, NBFCs, Brokers and Insurance Companies remained in net selling positions of 3.25, 2.14, 0.09, 2.15 and 3.52 million shares respectively but Banks and Mutual Funds remained in net buying positions of 0.65 and 11.64 million shares.

Asia shares bounce from two-month lows as U.S.-China trade war fears ease
Asian shares bounced from two-month lows on Thursday as world equities recovered from a selloff triggered by escalating Sino-U.S. trade tensions, with investors hoping a full-blown trade war between the world’s two biggest economies can be averted. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.2 percent, a day after it hit its lowest level in almost two month. Japan's Nikkei .N225 gained 1.2 percent. Markets in mainland China, and those in Hong Kong and Taiwan, are closed on Thursday. On Wall Street on Wednesday, the S&P 500 .SPX gained 1.16 percent and the Nasdaq Composite .IXIC added 1.45 percent, clawing back heavy losses of more than 1.5 percent right from earlier in the U.S. session.
Rs80b bulk allocation likely to vanish in PSDP
Bulk allocations of around Rs80 billion are likely to vanish in the upcoming PSDP 2018-19 as the government is all set to slash the ceiling for developmental portfolio by almost 25 percent. The federal government has initially set the Public-Sector Development Programme ceiling at Rs750 billion during the fiscal year 2018-2019, which is 25 per cent less than previous year development portfolio of Rs1,000 billion, official source told The Nation here Wednesday. The source however said that the reduction in the developmental portfolio is not going to affect the ongoing projects as the bulk allocations in PSDP 2017-18 will not be included in the upcoming PSDP. For example the source said that energy for all and clean drinking water for all are two projects with the allocation of Rs25 billion, Special Federal Development Programme, Rs 40 billion, Prime Minister Youth Initiative Rs20 billion.
Cement exports up by whopping 85pc in March
The buoyancy in domestic cement demand has been complemented by surging exports for the second month as cement exports from Pakistan increase by a whopping 85 percent in March. According to the latest figures, released by the APCMA on Wednesday, the domestic consumption in March was 4.26 million tons out of which 3.543 million tons was consumed in the Northern part and 0.717 million tons was consumed in the Southern part of the country, reflecting a growth of 13.52 percent. Cement exports surged to 0.392 million tons that was 85 percent higher than the exports during the corresponding period of last year.
Raw cotton worth $55m exported in 8 months
Raw cotton exports from the country during eight months of current financial year grew by 38pc as compared the exports of the corresponding period of last year. During the period from July-February, 2017-18, about 33,683 metric tons of raw cotton worth $55.551 million exported as compared the exports of 23,476 metric tons valuing $40.225 million of same period of last year. According the data of Pakistan Bureau of Statistics exports of cotton yarn increased by 1.87 percent as about 332,325 metric tons of the cotton yarn worth $859.716 million exported as against the exports of 302,652 metric tons valuing $843.953 million of the same period of last year, the data reveled. Meanwhile, country earned $1.391 billion by exporting about 1,380,282 thousand square meters of cotton cloth, which was recorded at 1,391,436 thousand square meters valuing $1.424 million in the corresponding period of last year, it added.
Hydroelectric power, water sector to get Rs59b instead of Rs272b demand
The allocation for water sector is likely to go down in the PSDP 2018-19 as instead of allocating 10 percent of the total development portfolio for the water sector , as agreed in the National Water Policy, the government have combined both hydro electric power and water sector and has given a budget ceiling of Rs59 billion. The demand of both hydro electric power and water resource were Rs272 billion however the government has provided a ceiling of only Rs59 billion which mean further decrease in the allocation for water sector , official source told The Nation. In PSDP 2017-18 the PSDP allocation of water sector was Rs36.75 billion and for the upcoming budget the Indicative Budget Ceiling (IBC) for both hydro electric power and water resource is Rs59 billion, the source said.
NBP and ATRL would try to lead index in positive direction but PSO, DGKC, LUCK, ISL and TRG would try to drag index in negative direction

The Benchmark KSE100 Index have bounced back after getting resistance from a strong resistant trend line on daily and weekly chart during last trading session and have formatted a weak reversal pattern by generating a hammer on daily chart. Current trading session would be a key point for market as sliding below 45,850 would create an evening star on daily chart which try to drag index in negative zone. Daily Stochastic have generated a bearish crossover but MAORSI have not confirmed reversal yet. It is recommended to practice caution while trading today. Index has supportive regions ahead at 45,600 and 45,140 points while resistant regions are standing at 46,140 and 46,500.