PSX Daily Market Review - 7th March 2018

Trading volume at PSX floor increased by 40.55 million shares or 29.59% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 43852.32, posted a day high of 44044.01 and a day low of 43660.46 during last trading session. The session suspended at 43705.10 with net change of -123.98 and net trading volume of 61.33 million shares. Daily trading volume of KSE100 listed companies increased by 16.58 million shares or 37.05% on DoD basis.
Foreign Investors remained in net buying position of 1.11 million shares but net value of Foreign Inflow dropped by 0.29 million US Dollars. Categorically, Foreign Individuals and Corporate Investors remained in net selling positions of 0.06 and 0.7 million shares but Overseas Pakistanis remained in net buying positions of 1.87 million shares. While on the other side Local Individuals, Companies, Banks and Insurance Companies remained in net selling positions of 1.26, 5.19, 4.25 and 4.98 million shares respectively but NBFCs, Mutual Funds and Brokers remained in net buying positions of 1.65, 6.42 and 5.96 million shares respectively.

Global stocks and the dollar slumped on Wednesday after a key advocate for free trade in the White House announced his resignation, fanning fears President Donald Trump would go ahead with tariffs and risk a trade war. White House economic adviser Gary Cohn, seen as a bulwark against protectionist forces within the Trump administration, said on Tuesday he was leaving. S&P 500 futures dropped more than one percent and set the downbeat tone for Asia. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.25 percent. Australian stocks fell 0.75 percent and Japan’s Nikkei retreated 0.2 percent.
Adviser to Prime Minister on Aviation Mehtab Ahmed Khan has said that the PIA’s engineering division has earned over Rs1 billion in one year by carrying out ‘A-check’ or maintenance on aircraft of other airlines. He stated this while addressing a ceremony held at the Islamabad airport on the completion of ‘A-check’ on A320-aircraft in Islamabad on Tuesday. A-check is usually very light check or maintenance carried out on an aircraft usually after 100 flight hours. The PIA has enhanced its engineering capacity at the Islamabad engineering base which will lead to significant savings by performing ‘A-check’ on the A320 aircraft. The facility was previously available at the Karachi engineering base. The adviser said that this engineering capability programme was part of the PIA’s five-year business plan to reduce losses and compete with leading airlines of the world.
A poor business environment, an overvalued exchange rate, relatively weak trade facilitation and infrastructure and lack of value chains inclusion in trade policy led Pakistan’s exports decline by 20 percent over the period fiscal year 2011 to 2017, said World Bank’s lead country economist Enrique Blanco Armas. “Pakistan’s exports performance in past ten years has not been stellar ,” said Enrique Blanco. Exports in goods and services rose by a low of 27.3% in Pakistan, whereas exports on average during the same time period grew by 165% in India, 276% in Bangladesh and 445% in Vietnam, over the period of 2005-16,” World Bank’s lead country economist said while speaking at roundtable meeting titled “Public-Private Policy Symposium of achieving export competitiveness in Pakistan”, organised by Sustainable Development Policy Institute (SDPI) in collaboration with the World Bank Group here on Tuesday.
Minister of state and chairman Board of Investment (BoI) Naeem Y Zamindar has invited the Kuwaiti investors for taking the advantage of lucrative investment opportunities existing in different sectors of national economy and said that BoI would offer all kind of facilitation to them. Addressing the members of the Kuwaiti business community, he said that the government was committed to make Pakistan a business friendly country. Foreign investment in Pakistan is protected by rigorous laws and foreign direct investment regulations allow full repatriation of capital and profits, he added.
Oil sales declined by 18 percent annually to 1.5 million tons in February mainly on the back of sharp drop in FO sales which declined by 26 percent to 4.7m tons amid lower demand from power sector. Motor gasoline (MOGAS) sales during the month increased by 4 percent to 0.5mn tons whereas high speed diesel (HSD) sales were down 3 percent to 0.6mn tons. Sales of these retail fuel products including MOGAS and HSD remained lower than expectations as higher pump prices (+ 18 percent YoY) had a profound impact on their sales . Hascol Petroleum (HASCOL) continued to outperform market as its market share stood at 14 percent in Feb 2018 vs 9 percent in same period last year. Pakistan State Oil (PSO) and Shell Pakistan (SHEL) remained laggards as their market shares dropped to 41 percent (-11 percent YoY) and 9 percent (-1 percent YoY), respectively. PSO with the highest share of FO sales is mainly affected from lower FO demand amid increased RLNG imports in Pakistan.
Market seems to remain volatile during current trading session therefore its recommended to practice caution.

The Benchmark KSE100 Index have tried again to penetrated its major resistance in upward direction during last trading session but could not succeeded and close below that resistant region of 43960 again. As of right now daily momentum have turned into bearish one as Daily Stochastic and MAORSI have generated bearish crossovers and these both indicators would add pressure on index. For current trading session Index have supportive regions ahead at 43410 points at at crossover of a supportive trend line along with a horizontal supportive region, while the second support falls at 43100 and 42900 points. Its exected that index would try to open with a negative gap below 43630 points and some recovery would be witnessed on intraday basis but ultimate momentum would remain bearish. For current trading session its recommended to sell on strength with strict stop loss.