PSX Daily Market Review - 5th June 2018

Trading volume at PSX floor increased by 58.81 million shares or 99.30% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 42,903.41, posted a day high of 43,293.00 and a day low of 42,832.94 during last trading session. The session suspended at 43,268.29 with net change of 355.48 and net trading volume of 73.12 million shares. Daily trading volume of KSE100 listed companies increased by 34.57 million shares or 89.69% on DoD basis.
Foreign Investors remained in net selling position of 8.44 million shares and net value of Foreign Inflow dropped by 12.81 million US Dollars. Categorically, Foreign Individuals remained in net buying positions of 0.08 million shares but Foreign Corporate and Overseas Pakistanis investors remained in net selling positions of 8.37 and 0.14 million shares. While on the other side Local Companies, Banks, Mutual Fund and Insurance Companies remained in net buying positions of 4.10, 3.44, 1.81 and 4.30 million shares but Local Individuals, NBFCs and Brokers remained in net selling positions of 2.85, 1.75 and 0.1 million shares respectively.

Asia stocks dip after rally, focus back on fundamentals
sian stocks dipped on Tuesday as the markets took a breather after the previous day’s rally, although tech-inspired Wall Street gains helped limit the losses, with investor focus moving away from trade concerns and back to benign economic fundamentals. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.1 percent after surging 1.4 percent the previous day. Japan's Nikkei .N225 gained 0.2 percent and South Korea's KOSPI .KS11 lost 0.3 percent. Wall Street’s three major indexes rose overnight, led by a rally in tech stocks, pushing the Nasdaq to a record closing high. [.N] Friday’s better-than-expected May U.S. employment report has helped revive investor optimism for the world’s biggest economy, shifting the focus away from recent trade tensions.
Tea imports grow by 9pc in 10 months
The tea imports into the country witnessed increase of 9.04 percent during the first ten months of the current fiscal year as against the corresponding period of last year. The tea imports into the country during July-April (2017-18) were recorded at $492.982 million against the imports of $452.112 million during July-April (2016-17), according to PBS. In terms of quantity, the tea imports, however, witnessed negative growth of 4.32 percent by declining from imports of 170,987 metric tons last year to 163,598 metric tons during the current fiscal year, the data revealed.
OGDCL, KUFPEC ink MoU for strategic cooperation Share:
Oil & Gas Development Company Limited (OGDCL) and Kuwait Foreign Petroleum Exploration Company (KUFPEC) Monday announced a strategic cooperation initiative for evaluating future potential business opportunities in international upstream exploration and production. The MoU for strategic cooperation was signed between Nawwaf S Alsalem, South Asia Regional Manager for KUFPEC, and Zahid Mir, Managing Director of OGDCL. The strategic cooperation between the two oil exploration companies envisages exploring opportunities jointly in Pakistan, the Middle East and other overseas blocks. Pursuant to the MoU, KUFPEC may offer OGDCL joint venture opportunities in its international assets and blocks. OGDCL has also agreed for a reciprocal arrangement in Pakistan with KUFPEC. Both OGDCL and KUFPEC will cooperate and collaborate in upcoming domestic and international opportunities.
Cement consumption slightly affected due to fasting month
With fifteen days of fasting falling in May, cement consumption was slightly affected as domestic dispatches posted modest growth of 2.40 percent, lowest this fiscal. Traditionally construction activities slowdown in Ramadan and even a modest growth in May indicates that the buoyancy in the sector is still there. According to latest data, in May 2018, the industry dispatched 3.919 million tons of cement against 3.708 million tons dispatched in May 2017. In May 2018, the domestic cement dispatches in the northern region were 2.812 million tons against 2.811 in May 2017 whereas, dispatches in the southern region amounted to 0.669 million tons in May 2018 against 0.588 million tons in the same month last year. Exports from north were 0.224 million tons last month against 0.219 million tons in May 2017. Exports from the south stood at 0.215 million tons in May 2018 against 0.090 million tons in May last year.
LCCI for representation of private sector in Ogra, Irsa
The Lahore Chamber of Commerce & Industry has urged the government to ensure adequate representation of private sector in all important bodies whether it is Oil and Gas Regulatory Authority (Ogra) or Indus River System Authority (Irsa). LCCI president Malik Tahir Javaid said that being the major stakeholder of the country, business community should have representation in senate and all important bodies but it is not anywhere and being used as a money making machine. “How policies conducive for trade and industry can be formulated without participation of the main stakeholder”, the LCCI president questioned. “Business community can be the most powerful economic force of the government but for this, present regime should take it on board and treat as partner”, Malik Tahir Javaid said.

ISL, SNGP and ATRL would try to lead market sentiment in positive direction but TRG, PAEL, DGKC and EPCL would try to lead Laggards during current trading session

The Benchmark KSE100 Index have its major resistance of 42,860 points during last trading session and now its heading towards 43,360 points where its being capped by another horizontal resistance which have reacted as very strong pivotal point previously. Momentum indicators on hourly, daily and weekly basis have turned to bullish side but this weekly closing would confirm either this bullish sentiment would sustain or not, because closing above 43,360 would call for 43,900 points and then 44,230 points on daily chart where correction of recent bearish rally would be completed. For current trading session it’s recommended to adopt swing trading strategy until index close above 43,360 points on hourly chart.