PSX Daily Market Review - 8th Oct 2018

Trading volume at PSX floor increased by 43.57 million shares or 39.41% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 40,081.75, posted a day high of 40,136.32 and a day low of 39,030.03 during last trading session. The session suspended at 39,226.35 with net change of -860.77 and net trading volume of 87.37 million shares. Daily trading volume of KSE100 listed companies increased by 32.38 million shares or 58.90% on DoD basis.
Foreign Investors remain in net selling positions of 6.97 million shares and net value of Foreign Inflow dropped by 2.65 million US Dollars. Categorically Foreign Individuals, Foreign Corporate and Overseas Pakistanis investors remained in net selling positions of 0.26, 4.36 and 2.35 million shares. While on the other side Local Companies, Banks, NBFCs, Mutual Fund and Insurance Companies remained in net buying positions of 6.55, 6.87, 0.75, 0.56 and 6.13 million shares respectively but Local Individuals and Brokers remained in net selling positions of 14.61 and 0.08 million shares.

Asian shares fall as China set to reopen after Beijing eases policy
Shares in Asia stumbled in early trade on Monday as investors waited with bated breath as China’s markets prepare to reopen following a week-long holiday and after its central bank cut banks’ reserve requirements in a bid to support growth. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.3 percent, after major stock markets around the world fell for a second straight day on Friday. Australian shares were down 1 percent. Markets in Japan are closed for a holiday.
ADB will provide $7.1b to Pakistan: Official
Asian Development Bank (ADB) will provide $7.1bn in financing assistance to Pakistan to achieve inclusive and sustainable growth over the next three years, a senior official said. According to ADB, the economy of Pakistan is facing crisis and necessary action must be taken for the development of private sector, trade promotion and institutional reforms. ADB is also re-engaging in education, health, social safety net through income support program.ADB officials, during visit, met with Finance Minister, Planning and Development Minister and education minister as well as other government officials and development partners.
Oil market is balanced, says Qatar energy minister
The oil market is balanced in terms of supply and demand, Qatar’s Energy Minister Mohammed al-Sada said on Sunday. “Geopolitical changes” are the reason for the recent rise in crude prices, the state-run Qatar News Agency quoted him as saying. “There are developments in the oil market including supply and the increase in global demand, and these considerations will be taken into account at the next meeting of OPEC (the Organization of the Petroleum Exporting Countries),” he said. Oil prices have been rising as U.S. sanctions against Iran’s crude exports are set to start next month. Brent crude is trading at nearly $85 a barrel, compared to $65 at the beginning of the year.
Rs37.6b released for development projects under PSDP 2018-19
The government has released over Rs 37.6 billion under its Public Sector Development Programme (PSDP) 2018-19 for various ongoing and new schemes against the total allocations of Rs 675 billion. The released funds include Rs 24.8 billion for federal ministries and Rs 11.8 billion for special areas, a latest data released by Ministry of Planning, Development and Reform said. Out of these allocations, Rs 2.78 billion have been released for Communication Division (other than National Highway Authority) for which the government has earmarked Rs 13.9 billion under PSDP 2018-19. Railways Division received Rs 4.17 billion out of its total allocation of Rs 28.06 billion whereas Aviation Division received Rs 205.45 million out of its total allocation of Rs 3.6 billion.
Govt ready to take more ‘tough steps proposed by IMF’
The government said on Friday it was ready to take ‘further corrective measures’ proposed by the International Monetary Fund (IMF) to restore economic stability and inclusive growth, apparently setting the pitch for a coming bailout package from the fund.

ATRL, PSO, DGKC, SNGP and ISL would try to bounce back after a dip during current trading session to support index.

The Benchmark KSE100 Index have tried to found some ground at a horizontal supportive region during last trading session but daily momentum indicators are strongly bearish and they would try to push index further downward. As of now index have supportive regions at 38,900 and 38,500 points and these both regions fall on two strong horizontal supportive lines along with a crossover of two trend lines, on flipside index have resistant regions at 39,660 and 40,200 points for current trading session. It’s expected that index would try to recover after a dip during current trading session therefore long positions could be initiated above 39,000 or 38,900 points with strict stop loss of 38,500 points.
ATRL, PSO, DGKC, SNGP and ISL have supportive regions ahead from where these scripts could bounce back for a short term reversal. ATRL have a strong supportive region ahead between 122-120 Rs and a bounce back could be witnessed from this region. PSO is going to find strong support between 236-232 Rs as its being supported by a rising trend line along with a horizontal supportive region. DGKC, SNGP and ISL have supportive regions ahead at 85, 78 and 84.50 Rs respectively and all these scripts would bounce back for a correction of current bearish rallies.