PSX Daily Market Review - 9th Oct 2018

Trading volume at PSX floor increased by 31.91 million shares or 20.71% on DoD basis, whereas the Benchmark KSE100 index opened at 39,224.88, posted a day high of 39,297.31 and day low of 37,769.61 points while the session suspended at 37,898.29 with net change of -1328.06 points and net trading volume of 113.82 million shares. Daily trading volume of KSE100 listed companies increased by 26.45 million shares or 30.27% on DoD basis.
Foreign Investors remained in net selling position of 13.4 million shares and net value of Foreign Inflow dropped by 7.74 million US Dollars. Categorically, Foreign Corporate Investors remained in net selling position of 13.7 million shares but Overseas Pakistanis remained in net buying position 0.31 million shares. While on the other side local individuals, mutual funds and brokers remained in net selling positions of 6.69, 3.58 and 1.84 million shares but local companies, banks and insurance companies remained in net buying positions of 11.42, 9.09 and 4.32 million shares respectively.

Asian stocks at 17-month low as China lets yuan slip
Asian shares hit 17-month lows on Tuesday as China allowed its currency to slip past a psychological bulwark amid sharp losses in domestic share markets, a shift that pressured other emerging currencies to depreciate to stay competitive. The IMF added to the malaise by cutting forecasts of global growth for both this year and next, including downgrades to the outlook for the United States, China and Europe. “Risk sentiment is in a foul mood and stocks are sinking everywhere,” said analysts at JPMorgan in a note. MSCI’s broadest index of Asia-Pacific shares outside Japan eased another 0.2 percent after ending Monday at its lowest point since May last year. Japan’s Nikkei fell 1.2 percent, hurt in part by a rise in the safe-harbor yen.
Macroeconomic adjustments required to correct twin deficits: WB
World Bank has said that immediate macroeconomic adjustments are required for Pakistan to correct the large twin deficits. READ MORE: Explosion, fire at Canada's largest oil refinery World Bank's latest edition of the South Asia Economic Focus, Budget Crunch, finds that rising global interest rates and tighter liquidity situation will pose challenges to Pakistan given the high gross external financing requirements. With declining reserves and elevated debt ratios, Pakistan’s ability to withstand external shocks is diminished and risks will remain predominantly on the downside. Appropriate policy responses to correct these imbalances and increased buffers to absorb future shocks will reduce these risks and support a positive growth outlook.
FATF begins assessment of anti-money laundering steps
Pakistan on Monday reported strengthening of its legal and institutional framework to curb terror financing and money laundering when a visiting delegation of global experts began third ‘on-site inspection’ of its commitment with Paris-based Financial Action Task Force (FATF). The nine-member team of the Asia/Pacific Group (APG) held question-answer sessions with three agencies – Federal Investigation Agency (FIA), Financial Monitoring Unit (FMU) and Anti-Narcotics on five of the 10-point action plan on first day of 12-day deliberations.
Ending long drawn-out uncertainty, the government on Monday announced its decision to approach the International Monetary Fund (IMF)
Finance Minister Asad Umar left for Indonesia on Monday night to participate in the annual meetings of the IMF and World Bank at Bali, scheduled to run from Oct 9 to 12, and formally request a bailout programme. Other members of his team included State Bank of Pakistan Governor Tariq Bajwa, Economic Affairs Secretary Ghazanfar Abbas Jilani and Special Finance Secretary Noor Ahmad. “The government has decided to approach the IMF for stabilisation and an economic recovery programme,” said the finance ministry in a statement after the stock market suffered an over 1,300-point plunge, losing almost Rs270 billion of its capitalisation — the highest single-day loss in a decade.
CPEC focus must be on job creation, agriculture: Imran
Prime Minister Imran Khan decided on Monday to shift the focus of the China-Pakistan Economic Corridor (CPEC) from motorways to agriculture, job creation and foreign investment. The decision was taken in a meeting presided over by the prime minister at Prime Minister Office. “Earlier, the CPEC was only aimed at construction of motorways and highways, but now the prime minister decided that it will be used to support the agriculture sector, create more jobs and attract other foreign countries like Saudi Arabia to invest in the country,” Information Minister Fawad Chaudhry told Dawn while giving details of the meeting.

SSGC, ASL, PRL and ISL would try to lead positive momentum.

The Benchmark KSE100 Index is sliding downward after penetration of its major supportive region of 40,500 points during last three trading sessions and had penetrated its three month low but had not succeeded in closing below its 52 weeks low of 37,736 for completion of third wave of its weekly bearish Elliot wave. As of now index would try to penetrate its 52 weeks low and would find some support around 37,600 points because that region fall on a crossover of a trend line and a horizontal support. But if index would succeed in sliding below that region a free fall would be witnessed towards 36,500 points. Hourly momentum indicators are ready for a pullback but daily and weekly momentum indicators are still bearish and they would try to resist against any pullback also these would try to push index further in downward direction to complete its 5th secondary wave of 3rd primary wave. In case of reversal from 37,600 or 36,500 points index would face resistances at 38,900 and 39,600 points.