PSX Daily Market Review - 8th Nov 2018

Trading volume at PSX floor increased by 46.57 million shares or 20.22% on DoD basis, whereas the Benchmark KSE100 index opened at 41,326.74, posted a day high of 41,597.93 and day low of 41,231.19 points during last trading session while session suspended at 41,543.98 with net change of 585.45 points and net trading volume of 169.72 million shares. Daily trading volume of KSE100 listed companies increased by 27.39 million shares or 19.24% on DoD basis.
Foreign Investors remained in net selling position of 0.11 million shares and net value of Foreign Inflow dropped by 2.54 million US Dollars. Categorically, Overseas Pakistani remained in net buying positions of 1.68 million shares but Foreign Corporate investors remained in net selling positions of 1.80 million shares respectively. While on the other side Local Individuals and Mutual Fund remained in net buying positions of 10.27 and 3.88 million shares respectively but Local Companies, Banks, NBFCs, Brokers and Insurance Companies remained in net selling positions of 4.84, 3.84, 0.24, 3.68 and 2.41 million shares respectively.

Asia cheered by post-election Wall St. rally, dollar bounces
Asian stocks rose to a one-month peak on Thursday as investors, relieved to have moved past the U.S. midterm elections without any major political surprises, drove a Wall Street rally, while the dollar bounced and pulled away from 2-1/2-week lows. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.5 percent. Hong Kong's Hang Seng .HSI advanced 0.9 percent and the Shanghai Composite Index .SSEC climbed 0.35 percent.
GE signs $60m agreements with Thar Energy Power Plant
GE Power (NYSE: GE) has announced that it has won equipment and services deals worth more than $ 60 million to power and provide critical maintenance services for a period of 12 years for the 330 megawatts (MW) Thar Energy Limited (TEL) Power Plant in Pakistan. The collaboration further demonstrates GE’s advanced technologies and reinforces its leadership as a trusted partner throughout the lifecycle of a power plant.
CCRI establishes modern laboratory to control pest attacks
Central Cotton Research Institute (CCRI) has established a state-of-the-art modern laboratory to eradicate the attacks of white flies and pink ball worms on cotton crops which were causing damages to the crop worth billions of rupees annually across the cotton growing areas of the country. Besides, the institute had also started its research on other insects to prevent the crop from their attacks and a mechanism was also evolved to disseminate the research finding to the door steps of the farmers, particularly small scale growers, Cotton Commissioner in the Ministry of National Food Security and Research Dr Khalid Abdullah Wedensday said. He said the decision for the establishment of the laboratory was taken to enhance the agriculture productivity for the prosperity of farming community and economic development of the country as according the vision of Prime Minister Imran Khan.
Domestic cement consumption stagnant in four months
The overall cement dispatches have increased by 5.37 percent to 15.353 million tons during the first four months (July-Oct) of the current fiscal year of 2018-19 while the domestic uptake has shown almost flat growth, as it increased by paltry 0.82 percent during this period. he data of the All Pakistan Cement Manufacturers Association released on Wednesday said that cement dispatches grew by 7.45 percent in the month of October 2018. The industry dispatched 4.536 million tons of cement last month out of which almost 3.921 million tons was consumed domestically and rest 0.615 million tons was exported.
CCP approves Alipay’s acquisition of Telenor Microfinance Bank
The Competition Commission of Pakistan (CCP) has approved M/s. Alipay (Hong Kong) Holding Limited's acquisition of 45% shareholding in M/s Telenor Microfinance Bank Limited, paving the way for the world's largest mobile payment platform's entry into Pakistan. Founded in 2004 by Jack Ma, Alipay is a part of the Alibaba Group, a Chinese multinational conglomerate specializing in e-commerce, retail, Internet, AI and technology. Telenor Microfinance Bank is Pakistan's first scheduled microfinance bank, and provides microfinance and related financial services.

The Benchmark KSE100 Index have tried to recover after getting support from a strong supportive trend line during last two trading sessions and same line have previously reacted as a strong resistance because it was resistant trend line of a bearish trend channel on daily chart. But now index is being capped by two major resistances at 42,060 and 42,300 points because these both lines fall on strong horizontal resistant regions. Daily momentum indicators are still bearish and they are indicating that index still have not changed its direction to bullish side until it will close above 42,300 points while hourly momentum indicators are ready to add some pressure on index during current trading session and it’s expected that index would witness a volatile condition during current trading session with negative sentiment on volume leader scripts, there are chances of a weekly double top formation in index this week and if it would be completed than a major shift would be witnessed in investors sentiment. On flipside index would try to find some ground against bearish momentum at 41,160 and 40,500 points and breakout of 40,500 points in downward direction would call for a short term bearish trend. It’s recommended to initiate selling on strength below 42,060 with strict stop loss of 42,300 points during current trading session.
Currently PSO, DGKC, ISL, MLCF, PAEL and FCCL are capped by their major resistant regions ahead respectively at 287, 112, 92, 54, 33.50 and 34.30 Rs in coming days and if these would not become able to close above their respective resistant region then a negative trend would be witnessed in these market items. In case of sentiment change TRG, EPCL and DOL would lead the negative trend with good volumes as these scripts have resistant regions ahead at 32.50, 39.30 and 38.20 Rs respectively. TRG is capped by a strong horizontal resistance while EPCL is capped by a resistant trend line on weekly chart and DOL have chanced of formation of a weekly evening shooting star if it would succeed in closing around 34.50.