PSX Daily Market Review - 8th May 2018

Trading volume at PSX floor dropped by 9.16 million shares or 6.15% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 44,546.19, posted a day high of 44,761.84 and a day low of 44,335.54 during last trading session. The session suspended at 44,378.52 with net change of –158.39 and net trading volume of 59.93 million shares. Daily trading volume of KSE100 listed companies dropped by 8.84 million shares or 12.85% on DoD basis.
Foreign Investors remained in net buying position of 0.96 million shares but net value of Foreign Inflow dropped by 0.26 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in net buying positions of 0.11 and 0.94 million shares but Foreign Corporate Investors remained in net selling positions of 0.09 million shares. While on the other side Local Individuals and Local Companies remained in net buying positions of 3.95, 1.77 and 0.09 million shares but Banks, Mutual Funds, Brokers and Insurance Companies remained in net selling positions of 4.50, 0.63, 0.35 and 0.44 million shares respectively.

Oil elevated ahead of Trump Iran announcement, shares firm
Oil prices stood near their highest since late 2014 on Tuesday, ahead of an announcement by U.S. President Donald Trump on whether he would withdraw from a landmark nuclear deal with Iran, which fueled concerns about crude supply. Asian shares firmed slightly in early trade with technology stocks resilient after generally upbeat earnings despite weakness in the global smartphone market and concerns about more regulation. U.S. West Texas Intermediate (WTI) crude futures CLc1 on Monday rose above $70 for the first time since November 2014, having gained more than 18 percent from this year’s low touched in February. Oil prices later pared some of those gains as traders took profit after Trump confirmed in a tweet that he would announce his decision on the nuclear deal at 1800 GMT on Tuesday.
Govt mulls legal changes to pave way for K-Electric transfer
Days after a team from Shanghai Electric, the company that is in a bid to buy controlling stake in K-Electric for $1.77 billion, left town, the government has come up with some changes in the legal framework surrounding the deal to allow for multiple financial transactions in the future. A meeting of the Cabinet Committee on Energy (CCoE), presided over by Prime Minister Shahid Khaqan Abbasi, deliberated on the revised framework presented by the Privatisation Commission. The meeting noted that such a legal and financial platform should be in the light of international standards to prove to the markets through actions and not words how Pakistan was progressing on ‘ease of doing business’.
CCP asks govt to abolish sugarcane support price
The Competition Commission of Pakistan (CCP) has recommended the federal government to abolish the support price of sugarcane and let the market determine the price based on supply and demand. The CCP has also recommended measures to the federal and provincial governments for making the sugar industry more efficient, improving sugarcane quality, enhancing and diversifying production processes, and focusing on export competitiveness. The CCP issued recommendations after taking notice of the sugarcane procurement crisis, the CCP held an open hearing on 25 January 2018. The commission had provided a platform to all stakeholders including representatives of the federal and provincial governments, growers, millers, retailers, distributors, and consumers to express their concerns.
Plans afoot to attract foreign investors: PM
Prime Minister Shahid Khaqan Abbasi on Monday wooed foreign investors to exploit the rich potential Pakistan offers in diverse fields and benefit from the lucrative incentives offered by the country. Addressing an investors' conference here at a local hotel that focused on ways to raise the national GDP to 9percent, the Prime Minister said the national policies for foreign and domestic investors would continue, despite the change in government. "Pakistan has become a destination of choice," the prime minister told the investors and diplomats of several countries and said "not a single company has lost money in Pakistan." He said Pakistan has a mature financial and legal system and was rapidly removing the bottlenecks in ease of doing business so as to attract more foreign investors into the country.
Ogra rejects increase in gas tariff for SNGPL consumers
Oil and Gas Regulatory Authority (Ogra) on Monday rejected proposal of the Sui Northern Gas Pipeline Limited (SNGPL) to raise gas tariffs for domestic consumers. SNGPL had proposed a hike in prescribed prices of about 78 percent like Rs389 / MMBTU which will eventually increase the end consumer gas prices for fiscal year 2018-19. During the hearing, the Ogra was of the view prices may be rather decreased following better planning, management and adopting best international practices. KP government said the petition submitted by SNGPL was not drafted in light of Article 158 of the constitution which states that gas priority would be given to the province in which gas is producing to fulfill its requirements. The representative from KP government stated that as per the petition, SNGPL has not planned any transmission network in KP for 2018-19. Even the distribution network is planned for specific region and not throughout KP.

The Benchmark KSE100 index have slide below its second consecutive major supportive region during last trading session and have closed below a descending trend line which was supporting index against bearish momentum, now the same trend line would resist against any upward trend and index would face strong reaction before closing above said trend line. It’s expected that index would try an intraday spike during current trading session because daily stochastic is trying to generate a bullish crossover which would create a cheat pattern for attraction of new buying on PSX floor. On short term basis it’s expected that index would target 43860 and 43440 in coming days while for current trading session index have resistant regions around 44,660 and 45,096 points.