PSX Daily Market Review - 9th Jan 2019

Trading volume at PSX floor increased by 9.69 million shares or 6.17% on DoD basis, whereas the Benchmark KSE100 Index opened at 38,639.60, posted a day high of 39,148.92 and a day low of 38,562.40 during last trading session while session while suspended at 39,052.50 with net change 490.10 points and net trading volume of 105.12 million shares. Daily trading volume of KSE100 listed companies increased by 1.62 million shares or 1.57% on DoD basis.
Foreign Investors remained in net buying positions of 0.68 million shares but net value of Foreign Inflow dropped by 0.09 million US Dollars. Categorically, Foreign Corporate remained in net selling positions of 0.45 million shares but Overseas Pakistani investors remained in net buying positions of 1.12 million shares. While on the other side Local Companies, Mutual Fund and Brokers remained in net buying positions of 4.11, 4.99 and 58.44 million shares respectively but Local Individuals, Banks, NBFCs and Insurance Companies remained in net selling positions of 62.81, 1.36, 0.30 and 5.15 million shares.

Asian shares hit three-and-a-half-week high on U.S.-China trade optimism, oil climbs
Asian shares climbed to a 3-1/2-week high on Wednesday, supported by growing optimism that the United States and China can strike a trade deal to avoid an all-out confrontation that would severely disrupt the global economy. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS climbed 1.5 percent to its highest level since Dec. 14.
ECC gives another 90 days to plan PSM revival
The Economic Coordination Committee (ECC) of the Cabinet on Tuesday gave further three months time for putting up a plan for operationalisation of Pakistan Steel Mills (PSM), that has been closed since June 2015 due to multiple reasons. The ECC, which met under the chair of Finance Minister Asad Umar, discussed the issue of the PSM. The Ministry of Industries and Production shared with ECC progress on study regarding operationalization of Pakistan Steel. The ECC desired for early completion and submission of the study.
CPEC to create 700,000 direct jobs by 2030
As many as 700,000 new job opportunities for local people are estimated to be created by 2030 under the mega project of China Pakistan Economic Corridor (CPEC). “So far various CPEC projects have provided direct job opportunities to around 75,000 people across the country, according to documents from China Embassy here. A recent study conducted by CPEC Centre of Excellence, Ministry of Planning, Development and Reform of Pakistan showed that indirectly, CPEC could help create even 1.2 million jobs under its presently agreed project.
Govt to announce power policy this month
Hoping to overcome prevailing gas shortage, the government on Tuesday decided to announce a new power policy along with a 25-year composite energy strategy this month. This was the crux of a meeting of the Cabinet Committee on Energy presided over by Prime Minister Imran Khan. The meeting took stock of increasing number of complaints regarding gas and electricity shortage in the country and the remedial measures being taken by the authorities concerned.
Asad vexed by bureaucrats’ lack of preparation
Amid a 24 per cent shortfall in cotton production this year, Finance Minister Asad Umar gave vent to his irritation over repeated presentation of half-baked ideas before the Economic Coordination Committee (ECC) of the cabinet and returned issues of duty-free import of cotton and revival of Pakistan Steel Mills (PSM) to relevant ministries. The ECC meeting had been called on Tuesday with only one item on the agenda — tax and duty-free import of cotton — and took up a presentation on PSM revival from Hubco as an additional item, but the presentation did not satisfy the finance minister who presided over the session.

The Benchmark KSE100 Index is about to complete 50% correction of its last bearish rally which was started from 42,243 points and ended up at 36,802 points and now its correction is being completed at 39,360 points where a horizontal resistance is also capping index’s bullish rally. Index already have completed 100% expansion of its intraday correction and it’s expected that a bounce back could be witnessed before 39,500 points because hourly momentum indicators have started a bearish journey and these would try to turn daily direction as well therefore its recommended to stay cautious and start profit taking before 39,360 points during current trading session. While short positions could be initiated in selective items around 39,360 points with strict closing stop loss of 39,500 points.