PSX Daily Market Review - 7th Jan 2019

Trading volume at PSX floor dropped by 3.53 million shares or 5.19% on DoD basis, whereas the Benchmark KSE100 Index opened at 37,565.24, posted a day high of 37,815.19 and a day low of 37,474.66 during last trading session while session while suspended at 37,547.49 with net change -253.24 points and net trading volume of 37.89 million shares. Daily trading volume of KSE100 listed companies dropped by 8.21 million shares or 17.81% on DoD basis.
Foreign Investors remained in net buying positions of 2.43 million shares but net value of Foreign Inflow dropped by 0.09 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistani remained in net buying positions of 0.01 and 2.51 million shares but Foreign Corporate investors remained in net selling positions of 0.10 million shares. While on the other side Local Individuals, NBFCs and Mutual Funds remained in net buying positions of 2.51, 0.07 and 2.62 million shares respectively but Local Companies, Banks, Brokers and Insurance companies remained in net selling positions of 2.91, 0.06, 1.59 and 2.98 million shares.

Asian shares ride relief rally, Sino-U.S. trade a hurdle
Asian shares sped ahead on Monday as a dovish turn by the Federal Reserve and startlingly strong U.S. jobs data soothed some of the market’s worst fears about the global outlook. Chinese stocks firmed after the country’s central bank announced an easing in policy on Friday, with 100 basis points of cuts to bank reserve requirements freeing up around $116 billion for new lending.
DGPC irregularities cost nation Rs64.44b
The irregularities committed by the Directorate General of Petroleum Concession (DGPC) in execution of Petroleum Policy 2012 have caused the national exchequer a loss of Rs 64.44 billion, as per an official report. In the performance audit report on implementation of Conversion Regimes, 2012 Ministry of Energy (Petroleum Division), the auditor general of Pakistan observed that supplementary agreements were not executed as per the economic package in the policy.
ADB provides $107m for water management in Balochistan
The Asian Development Bank (ADB) and the provincial government of Balochistan signed on Saturday the project agreement of a $107 million loan and grants to improve irrigation infrastructure and water resource management in Balochistan. Chief Minister of Balochistan, Jam Kamal Khan witnessed signing of the project agreement by Additional Chief Secretary for Development, Sajjad Ahmed Bhutta and ADB Country Director for Pakistan Ms Xiaohong Yang in Quetta, said a statement issued here.
Illegal cement import hurting local industry
The cement industry is performing in stiff regulatory environment and is only surviving because it has upgraded its technology, providing it the strength to take any challenge. The industry stakeholders said, “Our quality is the best in the region and our efficiency is second to none. No cement could compete with Pakistani cement if imported at real and fair value after paying all government levies. However, weak border controls and lax customs vigilance allow entry of cement from across our borders at unfair valuations hurting the local cement industry, they added.
KP to spend Rs9b on water, soil conservation
The Khyber Pakthunkhwa Government will spend about Rs 9 billion on conservation of water and soil in the province during next five years to get maximum area under wheat, rice and others crops besides vegetables and fruits cover. The water and soil’s conservation especially in rainy areas are top most priority of the government and up to Rs 9 billion would be spent on strengthening of these sectors to make the province self-sufficient in wheat, rice and other agriculture production, Mohibullah Khan, Minister for Agriculture, Livestock and Dairy Development told APP . He said all arid and semi arid areas besides waterlogged would be included in this mega project and about Rs billion would be required for conservation of water and soil in the province.

The Benchmark KSE100 index is trying to find support from a horizontal supportive region since last two trading session and so far it have been succeed in doing so, but daily and hourly momentum indicators have turned their direction to bearish side and these both would try to lead index in bearish direction if it would succeed in closing below 37,400 points in first hour. Furthermore index has supportive regions ahead at 37,064 and 36,860 points while resistant regions are standing at 37,860 and 39,315 points. Its recommended to swing trades between 37,000 and 38,315 points until index gave a clear breakout of either side.