PSX Daily Market Review - 5th Nov 2018

Trading volume at PSX floor increased by 47.27 million shares or 19.28% on DoD basis, whereas the Benchmark KSE100 index opened at 41,701.98, posted a day high of 42,243.83 and day low of 41,607.16 points during last trading session while session suspended at 42,004.09 with net change of 287.99 points and net trading volume of 209.72 million shares. Daily trading volume of KSE100 listed companies increased by 58.01 million shares or 38.24% on DoD basis.
Foreign Investors remained in net buying position of 3.29 million shares but net value of Foreign Inflow dropped by 0.54 million US Dollars. Categorically, Foreign Corporate remained in net buying positions of 4.18 million shares but Overseas Pakistani investors remained in net selling positions of 0.90 million shares respectively. While on the other side Local Individuals and NBFCs remained in net buying positions of 10.65 and 0.24 million shares respectively but Local Companies, Banks, Mutual Fund, Brokers and Insurance companies remained in net selling positions of 2.21, 2.46, 7.18, 1.18 and 0.71 million shares respectively.

Forget gridlock, Republican win may be better for stocks
U.S. President Donald Trump has warned that his favorite measure of success, the stock market, is imperiled if voters favor Democrats in next week’s congressional elections. While not fully accurate - stocks tend to rise regardless of who controls the government - it does bear out that the market has delivered a slightly stronger performance on average when Republicans dominate in Washington.
Coal-dependent Poland shifts on wind
Restrictive legislation introduced by Poland’s right-wing government in 2016 threw a spanner into the works for onshore wind energy, but the easing of some measures now promises to get the sector spinning. The change comes ahead of the COP24 World Climate Conference that opens December 2 in the southern Polish city of Katowice, a coal mining hub long among the main providers of the country’s primary source of both fuel and pollution. “We’re on the right track,” Janusz Gajowiecki, chairman of the Polish Wind Energy Association (PSEW), told AFP of plans to bring an additional one gigawatt (GW) of wind energy online. Poland currently has around 6.4 gigawatts of installed wind power, compared to neighbouring Germany, which has around 56 GW.
KSA readies to boost supplies over Iran oil sanctions
With Washington poised to curtail Iran’s oil exports, OPEC heavyweight Saudi Arabia and its partners stand ready to ramp up supplies even as market conditions remain uncertain, analysts say. The renewal of sanctions on the Islamic republic comes at a time of major supply disruptions in several producer nations and as US President Donald Trump aims to prevent an oil price hike.
Govt releases Rs105.46b under PSDP 2018-19
The government has released over Rs 105.46 billion under its Public Sector Development Programme (PSDP) 2018-19 for various ongoing and new schemes against the total allocations of Rs.675 billion. The released funds include Rs 49.02 billion for federal ministries and Rs 18.6 billion for special areas, according to a latest data released by Ministry of Planning, Development and Reform. Out of these allocations , the government released Rs 32.38 billion for National Highway Authority out of total allocation of Rs 185.2 billion, whereas Rs 3.12 billion have been released for NTDC and PEPCO for which an amount of Rs 33.36 billion was allocated under PSDP 2018-19.
Govt focusing on export-oriented policies, says planning secy
Secretary Planning, Development and Reforms Zafar Hasan has said the government is focusing on export-oriented policies to boost up the country’s exports and put economy on growth trajectory. He said this while talking to a German business delegation which, headed by Deputy Ambassador to Pakistan Jens Jokisch, called on him here. Members Planning Commission and senior officials of the ministry were also present in the meeting. The secretary said the present government was cognizant of issues plaguing the national economy and endeavoring to overcome challenges through effective economic policy making. He said measures were being taken to enhance tax to GDP ratio. He apprised that security situation in the country had improved significantly over the past couple of years and Pakistan was fast emerging as an attractive destination for foreign investment.

The Benchmark KSE100 Index is being capped by a horizontal resistant region at 42,300 points and breakout of that region on daily chart would call for 42,800 and 43,200 points where it’s being capped by a resistant trend line of its long term bearish trend channel. As of now it’s expected that index would start reversal for a correction after a spike and it would try to find support at 41,700 points but breakout of this region in bearish direction would call for 41,200 and 40,500 points in coming days. Daily momentum indicators are trying to add pressure and cap on current bullish rally therefore its recommended to start initiating selling on strength in chunks with strict stop loss of 43,200 points in coming days.