PSX Daily Market Review - 5th Oct 2018

Trading volume at PSX floor increased by 20.54 million shares or 22.82% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 40,568.92, posted a day high of 40,598.35 and a day low of 39,993.98 during last trading session. The session suspended at 40,087.12 with net change of -473.07 and net trading volume of 54.99 million shares. Daily trading volume of KSE100 listed companies increased by 2.35 million shares or 4.46% on DoD basis.
Foreign Investors remain in net buying positions of 4.55 million shares and net value of Foreign Inflow increased by 1.94 million US Dollars. Categorically Foreign Individuals, Corporate and Overseas Pakistanis investors remained in net buying positions of 0.01, 2.76 and 1.79 million shares. While on the other side Local Companies, Banks and Insurance Companies remained in net buying positions of 3.18, 0.69 and 0.87 million shares respectively but Local Individuals, Mutual Fund and Brokers remained in net selling positions of 2.05, 3.49 and 3.02 million shares.

Rising U.S. bond yields hit global markets, Asian stocks fragile
Asian shares were fragile on Friday after benchmark U.S. Treasury yields surged to a seven-year high and strong economic data fanned concerns about inflation and the risk of faster-than-expected interest rate rises. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3 percent, while Japan’s Nikkei dropped 0.5 percent and Australian benchmark was up just 0.1 percent. The yield on the benchmark 10-year note hit a fresh seven-year high of 3.232 percent overnight following data released the previous day that was seen as increasing the odds a Friday payrolls report would also be stronger than expected.
Investment opportunities in Gwadar highlighted
Chairman Senate Muhammad Sadiq Sanjrani Thursday said that there were enormous prospects for different countries to invest in Gwadar, adding that various projects were being executed under China-Pakistan Economic Corridor initiative in the port city. He called upon envoys who met him here on Thursday that their countries should benefit from the opportunities for enhancing bilateral economic cooperation with Pakistan. During separate meetings with ambassadors of Romania, Qatar, France and High Commissioner of Australia, Sanjrani said that with improving security situation, investment opportunities had increased manifold in Pakistan, especially in Gwadar region.
Govt notifies up to 143pc hike in gas tariff
The government on Thursday notified up to 143 per cent increase in natural gas tariff with effect from September 27th, 2018. Following the ECC decision of September 17, 2018, the Oil and Gas notified the gas prices for domestic, commercial, industrial, power, fertilizer, cement and CNG sectors consumers of both the Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) According to the notification, the domestic sector, which includes standalone meters, mosques, churches, temples, madrassas, other places of religion and hostels, has been divided into 7 slabs starting from the consumers using up to 50 cubic meter consumption and going beyond 500 cubic meters. The minimum charge for the domestic sector is Rs 163.35 per month.
Finance minister meets ADB VP
Finance Minister Asad Umar here on Thursday said that the present government had embarked upon a journey of structural reforms with particular emphasis on the energy structure. He said this in the meeting with Asian Development Bank (ADB) Vice President Wencai Zhang, said a press release issued here. They had a brief review of the ongoing and prospective ADB assisted projects in Pakistan. The finance minister said the priority of Pakistan Tehreek-e-Insaf (PTI) government included job creation, competitiveness of the export sector through industrial development, skill development and promotion of the SME and IT sectors.
ANF, BNU hold an awareness session
As part of the ongoing commitment of the Anti Narcotics Force (ANF) Punjab in creating a drug-free society, ANF held an awareness session in collaboration with Beaconhouse National University at Tarogil Campus. Brig Khalid Mehmood Goraya, Director General of ANF Punjab, was the guest of honor at the event. The session was attended by the Vice Chancellor Beaconhouse National University Shahid Hafiz Kardar, Deans, members of faculty, management and students. The purpose of the session was to enlighten the students about the adverse effects of the menace of illicit drugs and their abuse. A detailed presentation was given by Brig. Khalid Mehmood Gorya on the threats controlled substance pose against the development of a productive society and how individuals can play their role in curbing the prevalence of drugs and drug culture.

PSO, DGKC, MLCF, SNGP and ISL would try to lead negative momentum in market during current trading session.

The Benchmark KSE100 index have penetrated its daily triangle in bearish direction which is an alarming call for bull because technically now expansion of said triangle would took place in coming days and right now daily and weekly momentum indicators are supporting bearish sentiment which could lead index towards 39,600 points initially if it would succeed in sliding below 39,900. Today’s closing below 40,000 points would be dangerous for bulls because short and midterm trend would be changed to bearish direction which could lead index towards 37,600 and 34,500 points on short and midterm basis if breakout would happen. Currently index have resistant regions at 40,400 and 40,750 points from where it will be pushed back in case of any spike. It’s recommended to initiate selling on strength with strict stop loss during current trading session.