PSX Daily Market Review - 8th Jan. 2018

Trading volume at PSX floor increased by 38.6% million shares or 17.36% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 41876.62, posted a day high of 42584.96 and a day low of 41821.85 during last trading session. The session suspended at 42523.99 with net change of 615.28 and net trading volume of 109.96 million shares. Daily trading volume of KSE100 listed companies dropped by 17.69 million shares or 13.86% on DoD basis.
Foreign Investors remained in net buying position of 0.8 million shares and net value of Foreign Inflow increased by 4.81 million shares. Categorically, Foreign Individuals and Overseas Pakistanis remained in net selling positions of 0.08 and 1.42 million shares but Foreign Corporate Investors remained in net buying positions of 2.3 million shares. While on the other side Local Individuals and Insurance Companies remained in net selling positions of 14.88 annd 0.41 million shares but Local Companies, Banks, NBFCs, Mutual Funds and Brokers remained in net buying postions of 5.18, 1.89, 1.32, 1.88 and 5.2 million shares respectively.

Asian shares crept toward all-time peaks on Monday after Wall Street boasted its best start to a year in over a decade, with brisk economic growth and benign inflation proving a potent cocktail for risk appetite. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.1 percent having climbed 3.1 percent last week, its strongest performance in six months. At 588.07 the index is within spitting distance of the record top of 591.50 hit in November 2007. The Philippines .PSI is already at a record, while Australian stocks eked out another decade top. Japan's Nikkei .N225 was closed for a holiday but touched its highest since 1992 last week.
The unfettered cement industry in Punjab is once again being brought under the regulatory control of the provincial government after 29 years, allowing it to function and expand under a strictly monitored legal and administrative regime. The decision to once again regulate the cement industry was taken during a marathon meeting of a committee which was presided over by Chief Secretary Zahid Saeed two days ago at the Civil Secretariat. Five provincial ministers, several administrative secretaries of the departments concerned and MPAs from the Salt Range attended the meeting during which every aspect of the regulatory regime was discussed threadbare.
Indus River System Authority has said that the current water flows in four major rivers are 29.72 percent less than the last year. The situation of water storage in the reservoirs is better than last year, however the water flows in the rivers are 11000 cusecs less than the previous year, said IRSA in a letter in reply to a question from opposition leader in National Assembly, Khursheed Shah. Opposition leader in National Assembly, Khursheed Shah had written a letter to the Water division and asked it to provide the complete details of water situation including river flows, barrages position and reservoirs storages, official sources told The Nation here Sunday. Indus River System Authority (IRSA), in its reply, said that the currently the reservoirs have 2 Million Acre Feet (MAF) which is higher than last year. The situation in dams improved due to better management by Sindh, the water regulator explained.
Federal government has expedited work on construction of Kurram-Tangi Dam in North Waziristan Agency (NWA). A spokesman of WAPDA told Radio Pakistan that the dam will be completed at a cost of about Rs 30 billion in five years. The dam, on completion, will generate eighty-three point four megawatts of electricity besides irrigating three hundred and sixty-two thousand acres of barren land in North Waziristan Agency and Bannu district, he added.
The government of Sindh has agreed for the unbundling of the Sui Northern Gas Pipeline Company Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) on the condition that the provinces will be represented on the board of the Sui successor companies. The offer was made by Sindh government during the 2nd meeting of the Technical Committee on policy statement of gas sector reforms in downstream gas sector held last month. However, the KP government insisted that the government should transfer the financial powers to them while splitting the gas companies so that they have their own boards of directors and the powers to appoint managing directors, official sources told The Nation. KP also demanded keeping the transmission and distribution together.
Its recommended to exercise caution while trading during current trading session.

The Benchmark KSE100 Index have rallied for consecutive twelve trading session and have gained around 5000 points duing this rally. As of right now its expected that this rally is going to expire for a correction as index is capped by two major resistant regions. These resistant regions are standing at 42800 and 43200 therefore its recommended to start selling on strength untill unless index close above 43811 becuase this time index may be try to give a false breakout of these resistant regions before entertaining them. Its recommended to remain cautious as major supportive regions are standing at 40764 and 40000 Regions. For current trading session index have supports around 42100 and 41700 while resistances are standing at 42800 and 43200.