PSX Daily Market Review - 6th July 2018

Trading volume at PSX floor increased by 25.58 million shares or 21.75% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 41,350.51, posted a day high of 40,751.98 and a day low of 40,107.50 during last trading session. The session suspended at 40,238.84 with net change of -106.87 and net trading volume of 93.33 million shares. Daily trading volume of KSE100 listed companies dropped by 18.61 million shares or 24.90% on DoD basis.
Foreign Investors remained in net selling position of 10.61 million shares and net value of Foreign Inflow dropped by 4.46 million US Dollars. Categorically, Foreign Individuals remained in net buying positions of 0.02 million shares but Foreign Corporate and Overseas Pakistanis investors remained in net selling positions of 6.15 and 4.48 million shares. While on the other side Local Individuals, Local Companies, Banks, NBFCs, Brokers and Insurance Companies remained in net buying positions of 6.36, 9.04, 1.46, 1.15, 0.93 and 1.66 million shares but Mutual Fund remained in net selling positions of 10.87 million shares respectively.

Oil dips in nervous trading as U.S.-China trade war looms
Oil prices dipped on Friday in a nervous market ahead of a raft of import tariffs expected to be imposed later in the day by the world’s two biggest economies, the United States and China. Brent crude futures LCOc1 fell 25 cents, or 0.3 percent, to $77.14 per barrel by 0317 GMT from their last close. U.S. West Texas Intermediate (WTI) futures CLc1 were down 15 cents, or 0.2 percent, at $72.79. Weighing on prices was a rise in U.S. crude inventories C-STK-T-EIA of 1.2 million barrels in the week to June 29, to 417.88 million barrels, the U.S. Energy Administration (EIA) said on Thursday. Looming larger over markets is the U.S./China trade dispute. Washington has announced tariffs on Chinese goods from 12:01 a.m. Washington D.C. time (0401 GMT) on Friday.
MPs bar govt from installing new transformers before 25th
Senate Standing Committee on Power Thursday recommended to the government to abstain from installing new transformers or poles in any part of the country till July 25 general elections. Politicians in some constituencies are roaming with transformers in their vehicles while other have stored it in their Dairas(Guest Houses) and this trend need to be stopped, the Senate Standing Committee on Power observed this during a meeting held in Islamabad. The committee that met in the chair of Senator Fida Muhammad also warned that if the transformers laying in the Dairas (Guest Houses) of politicians were not removed they are going to hand over the case to FIA. The Committee recommended to the Ministry of Power to take strong action against installation of any new transformers or towers in any part of the country before the general elections.
Lesco continues loadshedding, power tripping
The Lahore Electric Supply Company has been carrying out electricity shutdown of three to four hours in urban areas while rural areas are facing electricity loadshedding of more than six hours, besides frequent tripping and low voltage. Official sources said that overall power demand until June 30 (during the tenure of last government) was around 23,000MW as compared to electricity generation of 22,600MW, showing a meager shortfall of only 350MW. However, they said, the current electricity shortfall has crossed the edge of 5,000MW as rural and urban areas across the country are facing 6 to 10 hours electricity loadshedding respectively.
Exports of leather products up by 8 percent
The exports of leather products from the country increased by 8 percent during the first eleven months of the fiscal year 2017-18 as compared to the corresponding period of last year. Pakistan exported leather products worth $478.857m during July-May (2017-18) against the imports of $443.430 million in July-May (2016-17), showing growth of 7.99pc, according to the PBS. Meanwhile, on year-on-year basis, the exports of leather products increased by 21.60 percent in May 2018 when compared to the exports of May 2017. –APP The leather products’ exports in May 2018 were recorded at $43.847 million compared to the exports of $36.059 million in May 2017. Among these products, the exports of leather garments increased by 15.10 percent in may 2018 compared to exports of May 2017 while the exports of leather gloves surged by 31.67 percent and other leather products by 28.29 percent.
Cotton sowing registers growth
Cotton crop sowing has registered over one percent increase across the crop producing areas of the country as compared the cultivation of corresponding period of last season as it had been sown over 2.69 million hectares of land. The cotton sowing targets were fixed at 2.95 million hectares in order to produce over 14 million cotton bales during the crop season 2018-19 in order to fulfill the domestic requirements as well as for exporting, said Cotton Commissioner in the Ministry of National Food Security and Research Dr Khalid Abdullah. He said that crop cultivation targets, which fixed for the current sowing season were achieved by over 91 percent as it went up by 1.0pc as compared with the area under cotton crop cultivation during same period of last year. He said that over all cotton sowing in the province of Punjab registered about 11 percent growth as it had cultivated the crop over 2.29 million hectares of land as against the set targets of 2.31 million hectares for the period under review.

The Benchmark KSE100 Index is trying to find support from a horizontal supportive region along with crossover of two trend lines therefore this region would try to push index again back to bullish zone from 39880 points. In case of breakout of 39,880 points on hourly basis the index would target 39,200 points for 100% expansion of its short term and intraday expansions. As of now it’s recommended to initiate new buying on dip with strict stop loss of 39,800 points because a correction of current bearish rally is expected to start which would generate a spike of 600-700 points. Current trading session is last session of the week and weekly bearish formation would be strengthened if index would not become able to close with a positive node today. In case of reversal index would face resistances at 40,870 and 41,500 points.