PSX Daily Market Review - 9th May 2018

Trading volume at PSX floor increased by 23.00 million shares or 17.63% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 44,364.02, posted a day high of 44,436.32 and a day low of 43,927.33 during last trading session. The session suspended at 44,066.96 with net change of –311.56 and net trading volume of 80.07 million shares. Daily trading volume of KSE100 listed companies increased by 20.14 million shares or 33.60% on DoD basis.
Foreign Investors remained in net selling position of 3.47 million shares but net value of Foreign Inflow increased by 0.41 million US Dollars. Categorically, Foreign Individuals, Foreign Corporate and Overseas Pakistanis Investors remained in net selling positions of 0.30, 3.08 and 0.1 million shares. While on the other side Local Individuals, Local Companies and Brokers remained in net selling positions of 3.58, 2.00 and 4.14 million shares but Banks, NBFCs, Mutual Funds and Insurance Companies remained in net buying positions of 1.1, 0.08, 3.83 and 6.12 million shares respectively.

Oil soars, shares rattled as Trump dumps Iran nuclear deal
Crude oil prices jumped back to near 3 1/2-year highs on Wednesday after President Donald Trump pulled the United States out of an international nuclear deal with Iran, sparking worries about global oil supplies.Asian shares ticked down as renewed U.S. sanctions on Tehran were seen as disruptive for many companies that have deals with Iran. Trump’s move is also seen as risking worsening already-tense relations between Iran and U.S. allies in the region. “In the very short term, it looks as if the impact of heightened geopolitical worries was limited to oil markets. But that is not the end of the story,” said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. “U.S. sanctions could affect various industries. And tensions between Iran and Israel look set to intensify. Those will begin to cap share prices,” he added.
Strike against WeBOC sytem at Sust border
Pak-China border trade has been suspended for a month due to a strike of traders against imposition of new policy Web Based One Customs (WeBOC) in entry point of Sust border. All traders association jointly organised a protest rally of vehicles on Tuesday which was started from GB headquarter Gilgit and terminated at Sust border. The Gilgit-Baltistan Chamber of Commerce and Industry (GBCCI) and other trade organisations are supporting the striking exporters and importers who have rejected the goods clearance system launched from April this season. While taking to media person at Sust president G-B importers and exporters association, Ishfaq said that border business through Khunjerab Pass is different from the rest of the country and traders have also lack of training and education regarding the newly imposed system WeBOC. He said, as a result, trade and business activities were suspended with China via Khunjerab Pass.
Pakistan, Afghanistan agree to enhance trade ties
Pakistan and Afghanistan on Tuesday agreed that the institutional mechanism between both the two countries needs to be strengthened and the holding of much awaited 7th Afghanistan Pakistan Transit Trade Coordination Authority meeting by the Afghan side was the need of the hour. Both the sides discussed it in a meeting of Afghan Deputy Minister for Commerce Kamila Sidiqi with Mohammad Younus Dagha, Secretary Commerce, and officials of the Ministry at the Ministry of Commerce. Fazal Abbas Maken, secretary National Food Security and Research, and officials of Ministry of National Food Security and Research, Federal Board of Revenue and Foreign Office were also present during the meeting.
NHA plans to undertake 5 more projects on PPP basis
NHA chairman Jawwad Rafique Malik has said that success story of NHA during the last five years includes undertaking of four major projects worth $3380 million on public-private partnership (PPP).NHA chairman said, “NHA has established an active cell for encouragement of private sector involvement in road building schemes, which is providing information under one window operation to the investors. As a result, NHA succeeded in undertaking four mega projects on PPP basis during the last five years which include 357-km modernisation of Lahore-Islamabad Motorway, conversion of existing super highway into 136-km Karachi-Hyderabad Motorway, construction of 89-km Lahore-Sailkot motorway and 300-km Hyderabad-Sukkur Motorway at a total cost of $3380 million.” He further said that NHA is planning to undertake five more projects on Public Private Partnership basis in the future. These projects will be completed at an estimated of cost of $1830 million.
Provincial govts blamed for failing to help curb power theft
With its term nearing end, the Pakistan Muslim League-Nawaz government has blamed the four chief ministers of the provinces for not helping eradicate electricity theft. On Tuesday, the Centre asked the four chief ministers to extend their personal support to address the menace of electricity theft in their provinces that had caused over Rs50 billion losses to the distribution companies in the first nine months of the current financial year. In identical letters to the chief ministers, Federal Minister for Power Sardar Awais Ahmed Leghari complained that the provinces had not been responsive to his efforts to minimise electricity theft and none of the four chief ministers had agreed to meet him over the past few months to resolve the long-standing issue.

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.