PSX Daily Market Review - 7th Feb. 2018

Trading volume at PSX floor dropped by 46.42 million shares or 16.32% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 43965.88, posted a day high of 43965.88 and a day low of 43498.24 during last trading session. The session suspended at 43885.51 with net change of -415.69 and net trading volume of 83.38 million shares. Daily trading volume of KSE100 listed companies dropped by 9.78 million shares or 10.5% on DoD basis.
Foreign Investors remained in net selling position of 1.94 million shares and net value of Foreign Inflow dropped by 0.92 million US Dollars. Categorically, Foreign Individual and Corporate Investors remained in net selling positions of 0.08 and 3.09 million shares but Overseas Pakistanis remained in net buying of 1.23 million shares. While on the other side Local Individuals, NBFCs and Brokers remained in net buying positions of 7.67, 0.69 and 4.35 million shares but Local Companies, Banks, Mutual Funds and Insurance Companies remained in net selling postions of 5.09, 1.12, 3.21 and 0.81 million shares respectively.

Asian share markets were trying to find their footing on Wednesday as a semblance of calm returned to Wall Street where major indices bounced into the black after days of deep losses. For now, the mood was one of relief. MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1.7 percent, recouping some of Tuesday’s 3.5 percent fall. That had been its biggest daily drop since August 2015. Chinese blue chips rallied 1.2 percent and Japan’s Nikkei rebounded 3.1 percent. The latter had slid 4.73 percent on Tuesday for its steepest fall in 15 months. “The only surprise about the current volatility is that it hasn’t happened sooner. Normally, even in a bull market, investors should expect a sell-off of 10-percent-plus at some point,” said Richard Titherington, chief investment officer of EM Asia Pacific Equities at J.P. Morgan Asset Management.
A parliamentary panel was surprised to know on Tuesday that the UAE-based international flights have expanded their operations from Pakistan, adding 100 new flights in a week, while the national flag carrier failed to take advantage of the open sky policy. National Assembly’s Standing Committee on Cabinet Secretariat, which met here at parliament house, chaired by MNA Rana Muhammad Hayat Khan, was informed that four international airlines have expanded their flight operation from 130 per week to 230 from various Pakistani cities, exploiting the open sky policy and landing rights.
The federal government is pushing for expedited completion of formalities to launch two special economic zones (SEZs) — one each at Islamabad and Port Qasim, Karachi — this year under the China-Pakistan Economic Corridor (CPEC). “We want to present the federal SEZs as models for Chinese investment so that the two zones take off during the current year,” a senior government official told Dawn on Tuesday. The top priority of the federal government is to ensure that CPEC physically enters the next stage of industrial cooperation this year. He said the Board of Investment (BoI) as the federal government’s lead agency for foreign investment was holding meetings on a daily basis with National Industrial Parks Development and Management Company and Capital Development Authority for finalisation of all legal and procedural requirements for Port Qasim and Islamabad industrial zones.
Deputy Chairman of Planning Commission, Sartaj Aziz has said that Pakistan is ready to take concerted measures which are aimed at further expanding mutually beneficial trade, economic cooperation and connectivity in the Shanghai Cooperation Organization (SCO) region. Sartaj Aziz expressed these views in a meeting with Rashid Alimov, secretary general of Shanghai Cooperation Organization, who called on him here Tuesday. Sartaj Aziz conveyed his deep appreciation for the strong support and facilitation extended by his excellency and the SCO Secretariat in the process of Pakistan’s accession to Shanghai Cooperation Organization in June 2017. Rashid Alimov, who is former foreign minister of Tajikistan, said the full membership of Pakistan and India in SCO will greatly enhance the development prospects of the entire region.
American Ambassador David Hale met with American Business Council of Pakistan (ABC) President Kamran Nishat and the Council’s Executive Committee on Tuesday to discuss opportunities to grow American-Pakistani commercial and economic ties. With bilateral trade having reached a record high of more than $6 billion in 2017, the ambassador stressed America’s commitment to fostering increased economic cooperation and welcomed ABC’s efforts to work with the Pakistani government to improve the country’s business and investment climate.
Its recommended to practice caution as market is expected to remain volatile.

The Benchmark KSE100 Index have slided below its major supportive trend line which was supporting its bearish run during last week and closed below that trend line. As of right now index have resistant regions ahead around 44162 and 44460 for current trading session and its expected that index would try to fulfil its pervious gap during current trading session therefore its recommended to sell on strength instead of new buying. Closing below 43400 would call for 42980 and 42500 in coming days.