Previous Session Recap
Trading volume at PSX floor dropped by 96.27 million shares or 28.25% on DoD basis, whereas the benchmark KSE100 index opened at 39,084.65, posted a day high of 39,084.65 and a day low of 38,130.39 points during last trading session while session suspended at 38,219.67 points with net change of -1162.44 points and net trading volume of 198.57 million shares. Daily trading volume of KSE100 listed companies also dropped by 43.25 million shares or 17.88% on DoD basis.
Foreign Investors remained in net selling positions of 4.27 million shares and value of Foreign Inflow dropped by 2.29 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani remained in net selling positions of 3.71 and 0.99 million shares but Foreign Individuals remained in net selling positions of 0.42 million shares respectively. While on the other side Local Companies, Mutual Fund and Brokers remained in net selling positions of 2.02, 6.15 and 6.59 million shares but Local Individuals, Banks, NBFCs and Insurance Companies remained in net long positions of 9.17, 0.49, 0.08 and 7.10 million shares respectively.
Analytical Review
World shares trampled in coronavirus panic, oil prices plunge
Global share markets tumbled on Monday as panicked investors fled to bonds to hedge the economic shock of the coronavirus, and oil plunged more than 20% after Saudi Arabia slashed its official selling price. Investors drove 30-year U.S. bond yields beneath 1% as they wagered the Federal Reserve would be forced to cut interest rates by at least 75 basis points at its March 18 meeting, despite only just having delivered an emergency easing. The safe-haven yen surged across the board as emerging market currencies with exposure to oil, including the Russian rouble and Mexican peso, tumbled. Saudi Arabia had stunned markets with plans to raise its production significantly after the collapse of OPEC’s supply cut agreement with Russia, a grab for market share reminiscent of a drive in 2014 that sent prices down by about two thirds.
Ministry objects to approval of massive loans for NHA
The Ministry of Communications is seeking an end to the practice of extending unsolicited expensive loans to the National Highway Authority (NHA) by the federal government through its ‘imposed projects’. The state-run NHA has a cash development loan (CDL) portfolio of over Rs2 trillion from the federal government, hampering smooth operations and development of its priority projects that can generate revenues for cash flows. In a summary for the upcoming meeting of the federal cabinet’s Economic Coordination Committee (ECC), the ministry of communications has asked the government that its existing CDL portfolio should be taken off NHA’s accounts to enable it to raise funds from the market for commercially viable road and highway projects. Also, the NHA should be burdened with fresh loans only for projects proposed by it, a senior government official told Dawn.
Strong words need strong action
As things stand today, the exclusion of women from the economic decision-making mainstream and sustainable development are two mutually exclusive components of an equation in which fairness, competitiveness, efficiency and innovations are all at stake. Having said that, the expected gains of equitable women participation are too compelling to be ignored. Based on the current World Bank Group report, Pakistan stands to rake in a whopping $1.3 trillion ‘gender dividend’ by closing gaps in lifetime earnings between men and women. Pakistan’s 0.8 per cent share in the global economy is a relevant marker for the calculation, assuming everything else remains the same.
GSP plans 4 projects to assess mineral potential, excel in exploration sector
The Geological Survey of Pakistan (GSP) has planned to execute four projects, worth Rs519.057 million, during the next fiscal year to assess the country’s real mineral potential, maintain its data and excel in hydrocarbon drilling activities. “The GSP has proposed four projects in the next Public Sector Development Programme (PSDP), out of these three Rs 512.533 million projects are related to mineral sector and one Rs 6.524 million scheme is meant for the fuel sector,” according to an official document available with APP. The National Assembly Standing Committee on Energy has recently approved the budgetary proposals of the Petroleum Division for incorporating in the PSDP 2020-21.
FIEDMC road show gets remarkable response from foreign investors
Faisalabad Industrial Estate Development and Management Company (FIEDMC) road show held at London got tremendous response from foreign investors showing keen interest in state of the art first ever prioritized Special Economic Zone, Allama Iqbal Industrial City kicked off by Prime Minister Imran Khan. Talking to media after his return from UK, FIEDMC Chairman Mian Kashif Ashfaq Sunday said the overseas Pakistanis are increasingly showing their overwhelming confidence in the leadership of Prime Minister Imran Khan as indicators of all global financial institutions were projecting Pakistan as a destination for secure and profitable investment,” says a press release issued here today.
Global share markets tumbled on Monday as panicked investors fled to bonds to hedge the economic shock of the coronavirus, and oil plunged more than 20% after Saudi Arabia slashed its official selling price. Investors drove 30-year U.S. bond yields beneath 1% as they wagered the Federal Reserve would be forced to cut interest rates by at least 75 basis points at its March 18 meeting, despite only just having delivered an emergency easing. The safe-haven yen surged across the board as emerging market currencies with exposure to oil, including the Russian rouble and Mexican peso, tumbled. Saudi Arabia had stunned markets with plans to raise its production significantly after the collapse of OPEC’s supply cut agreement with Russia, a grab for market share reminiscent of a drive in 2014 that sent prices down by about two thirds.
The Ministry of Communications is seeking an end to the practice of extending unsolicited expensive loans to the National Highway Authority (NHA) by the federal government through its ‘imposed projects’. The state-run NHA has a cash development loan (CDL) portfolio of over Rs2 trillion from the federal government, hampering smooth operations and development of its priority projects that can generate revenues for cash flows. In a summary for the upcoming meeting of the federal cabinet’s Economic Coordination Committee (ECC), the ministry of communications has asked the government that its existing CDL portfolio should be taken off NHA’s accounts to enable it to raise funds from the market for commercially viable road and highway projects. Also, the NHA should be burdened with fresh loans only for projects proposed by it, a senior government official told Dawn.
As things stand today, the exclusion of women from the economic decision-making mainstream and sustainable development are two mutually exclusive components of an equation in which fairness, competitiveness, efficiency and innovations are all at stake. Having said that, the expected gains of equitable women participation are too compelling to be ignored. Based on the current World Bank Group report, Pakistan stands to rake in a whopping $1.3 trillion ‘gender dividend’ by closing gaps in lifetime earnings between men and women. Pakistan’s 0.8 per cent share in the global economy is a relevant marker for the calculation, assuming everything else remains the same.
The Geological Survey of Pakistan (GSP) has planned to execute four projects, worth Rs519.057 million, during the next fiscal year to assess the country’s real mineral potential, maintain its data and excel in hydrocarbon drilling activities. “The GSP has proposed four projects in the next Public Sector Development Programme (PSDP), out of these three Rs 512.533 million projects are related to mineral sector and one Rs 6.524 million scheme is meant for the fuel sector,” according to an official document available with APP. The National Assembly Standing Committee on Energy has recently approved the budgetary proposals of the Petroleum Division for incorporating in the PSDP 2020-21.
Faisalabad Industrial Estate Development and Management Company (FIEDMC) road show held at London got tremendous response from foreign investors showing keen interest in state of the art first ever prioritized Special Economic Zone, Allama Iqbal Industrial City kicked off by Prime Minister Imran Khan. Talking to media after his return from UK, FIEDMC Chairman Mian Kashif Ashfaq Sunday said the overseas Pakistanis are increasingly showing their overwhelming confidence in the leadership of Prime Minister Imran Khan as indicators of all global financial institutions were projecting Pakistan as a destination for secure and profitable investment,” says a press release issued here today.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index had succeeded in sliding downward after getting resistance from 76.4% correction of its last bearish rally and it's expected that it would now continue its bearish journey which may extends its previous low. As of now it's expected that index would open with a negative gap and index would try to target 37,000 points on intraday basis and closing below that region would call for 34,500 points in coming day. It's recommended to stay on selling side with strict stop loss of 39,200 points. While on flip side now index would face major resistances at 38,670 points and 39,200 points in case of reversal from its supportive regions.
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