PSX Daily Market Review - 5th July 2017

Foreign Investors turned back to selling and remained in net selling of 13.5 million shares and net value of Foreign Inflow dropped by 7.03 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani investors remained in net selling positions of 12.73 and 0.77 million shares but Foreign Individuals remained in a net buying position of 5000 shares during the last trading session. While on the other side, Local Individuals and Companies remained in net selling positions of 0.043 and 6.08 million shares but local banks, mutual funds and brokers remain in net buying positions of 4.3, 2.95 and 5.35 million shares, respectively.

Asian share markets got off to a subdued start on Wednesday as simmering tensions on the Korean peninsula supported safe-harbors including the yen and gold. A holiday in the United States and a dearth of major data kept activity muted across Asia, though minutes of the Federal Reserve last meeting due later in the day could provide some impetus. MSCI broadest index of Asia-Pacific shares outside Japan was off 0.01 percent, having shed 0.6 percent on Tuesday when North Korea fired a missile into Japanese waters. Japanese Nikkei eased 0.1 percent, as did South Korean main index. North Korea said it had conducted a test of a newly developed intercontinental ballistic missile that can carry a large and heavy nuclear warhead. South Korean and U.S. troops fired missiles into the waters off South Korea to show their deep strike precision capability.
The GE announced the achievement of a major milestone in its contract with China Machinery Engineering Corp (CMEC) for Engro Powergen Thar (Pvt) Limited Thar Block II Power Plant, with the delivery of critical equipment for boilers, including cyclones, water walls, tubes sections, soot blowers and air pre-heaters. GE signed a contract with CMEC to supply two 330 megawatt (MW) Circulating Fluidized Bed (CFB) boilers for the project in May 2016. CFB boiler technology is particularly suited for newly-mined low-calorific value coals (ie, coals that release relatively low amounts of heat) like Pakistani Thar lignite.
Qatar announced on Tuesday it planned to raise liquefied natural gas (LNG) capacity by 30 percent in an apparent show of strength in its dispute with Gulf neighbors who have imposed political and economic sanctions on Doha. The unexpected move came as Qatar appears to be preparing itself for greater economic independence should the dispute with Saudi Arabia, the United Arab Emirates, Egypt and Bahrain become protracted. Its immediate effect will be to worsen a glut on the LNG market where Australia, the United States and Russia vie. The Gulf states and Egypt have severed diplomatic and transport ties with Doha, accusing it of supporting terrorism and courting regional rival Iran. Qatar denies the accusation.
The regional customs collectorate has collected Rs1.04 billion under the head of customs duty against the assigned target of 1.03 billion in June 2017, whereas overall revenue of Rs3.3 billion in respect of all duty and taxes has been collected against the target of Rs3.2 billion in the same month. Collector Preventive Lahore, Dr Zulfiqar Ali Chaudhry, has congratulated all the officers of the preventive collectorate on this remarkable achievement. He said that Customs Appraisement Lahore collected customs duty of Rs28.4 billion for the fiscal year ended June 30, 2017, which is 24 percent higher than the collection in the last fiscal year. In June 2017 alone, Customs Appraisement Lahore collected revenue of Rs4.5 billion surpassing the target assigned by the Federal Board of Revenue (FBR). This collection is 30 percent higher than the collection in the previous year.
The United States is counting on Pakistani support to eliminate militancy, in particular the Haqqani network, Senator John McCain said during a visit to the Afghan capital on Tuesday. “We have made it very clear that we expect they (Pakistan) will cooperate with us, particularly against the Haqqani network and against terrorist organisations,” said McCain, chairman of the US Senate Armed Services Committee, in Kabul. “If they donot change their behaviour, maybe we should change our behaviour towards Pakistan as a nation,” he insisted.
Maryam Nawaz Sharif, the daughter of the prime minister, will appear before the joint investigation team (JIT) probing money laundering allegations against the Sharif family on Wednes­day (today).

The Market is expected to remain volatile today. We advise Traders to exercise caution. Buying on dips and booking gains on strength is recommended.

The Index has been pushed back in a bearish direction by its 50% correction level on Monday, and it plunged back to its 84.12% correction of its total recovery of last week. However, it posted some recovery during the last trading session. Its capped by resistant trend line of its bearish trend channel on daily chart which would resist against any bullish rally until it closes above 46236 and 46800. For the current trading session 46236 would try to push index back in bearish direction if it fails to penetrate. The supportive regions for the index are standing at 43820 at its double bottom and 43000 which fall on 61.8% expansion levels. Trading with strict stop loss is recommended as index would attempt for making a new low after retesting its resistant regions at 46236 or 46800 in order to complete 5th wave of its bearish daily Elliot. Selling on strength is recommended until index close above 47000 in the coming days.