PSX Daily Market Review - 27th Feb. 2018

Trading volume at PSX floor dropped by 23.03 million shares or 12.08% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 43443.68, posted a day high of 43490.69 and a day low of 42804.50 during last trading session. The session suspended at 42911.02 with net change of -356.18 and net trading volume of 55.13 million shares. Daily trading volume of KSE100 listed companies dropped by 12.39 million shares or 18.35% on DoD basis.
Foreign Investors remained in net buying position of 0.27 million shares but net value of Foreign Inflow dropped by 1.13 million US Dollars. categorically, Foreign Corporate Investors remained in net buying position of 0.56 million shares but Overseas Pakistanis remained in net selling position of 0.32 million shares. While on the other side Local Individuals, NBFCs, Brokers and Insurance Companies remained in net buying positions of 8.54, 0.13, 6.17 and 2.48 million shares respectively but Local Companies remained in net selling position of 16.31 million shares.

Asian shares extended their recovery on Tuesday, hitting a three-week high as U.S. borrowing costs eased ahead of Federal Reserve Chairman Jerome Powell’s highly-anticipated first congressional testimony later in the day. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 percent, building on its bounce from a two-month low touched on Feb. 9. It has now recouped more than 60 percent of its losses from a sharp global rout in early February. Japan’s Nikkei rose 1.0 percent to three-week highs. On Wall Street, the S&P 500 advanced 1.18 percent on Monday helped by fall in U.S. bond yields.
The federal government on Monday offered the provinces to take over full responsibility of electricity and gas production, transmission and generation, with two provinces readily accepting the task. The offer was made by Prime Minister Shahid Khaqan Abbasi while presiding over a meeting of the Council of Common Interests (CCI). Sindh Chief Minister Murad Ali Shah and Khyber Pakhtunkhwa CM Pervez Khattak said that they were ready to take over the full chain of generation, transmission and distribution of power and gas supply at the earliest.
Al-Arabia Sugar Mills Limited (ASML) has submitted an application to National Electric Power Regulator Authority (Nepra) for power generation licence for its existing thermal generation facility/co-generation power plant. Sources told APP that ASML set up 18 MW bagasse plant at Shahpur Sadar, District Sargodha. The total installed capacity of the plant is 18 MW and has three units (4 MW, 4 MW and 10 MW). The generation facility of ASML is proposed to be connected on 11 kV bar of Shahpur 132/11 kV grid on double circuit of Osprey conductor of length 2.5 km. ASML intends to supply surplus electric power from its above mentioned generation facility to Faisalabad Electric Supply Company Limited (Fesco).
Pakistan has not decided yet to attend the World Trade Organisation (WTO)'s mini-ministerial that is being hosted by India in New Delhi next month. "Commerce Minister Pervaiz Malik, has been invited to attend the mini-ministerial. However, it has yet not been decided if he will be able to attend the meeting ," said Muhammad Ashraf spokesperson for the Ministry of Commerce on Monday. An informal WTO mini-ministerial is being hosted by India in New Delhi on 19-20 March 2018. The ministry has ruled out the speculations of the Indian's media that Pakistan's minister has accepted the Indian's invitation to attend the meeting . "The decision of the minister's visit to India will be taken in next few days," said another official of the ministry.
Pakistan Water and Power Development Authority (WAPDA) achieved yet another landmark towards energy security of the country, as Tarbela 4th Extension Hydropower Project started electricity generation Monday. The first generating unit, put into operation has started providing electricity to the National Grid. To mark the significant development of electricity generation from the first unit, Wapda Chairman Muzammil Hussain visited Tarbela 4th Extension Hydropower Project . Highlighting significance of the project in economic development and social uplift of the country, he said that prime minister will formally inaugurate the project in 2nd week of March. Under the project , three electric power generating units – each of them having capacity of 470 MW – have been installed at the Tunnel 4 of Tarbela Dam. The first unit has started electricity generation. The second unit is scheduled to be commissioned by end of April, while the third unit is schedule to start electricity generation by end of May, this year. It merits a mention that the 1410 MW-Tarbela 4th Extension is a component of least-cost energy generation plan.
Market seems to remain volatile during current trading session therefore its recommended to practice caution.

The Benchmark KSE100 Index have dropped after completing 61.8% correction on hourly chart and retesting its resistant region of a horizontal resistance at 43440 ponits during last trading session. As of right now index have supportive regions around 42500 and 42200 points while resitant regions are standing at 43440 and 43760 points. Its recommended to practice caution while trading during current trading session because closing below 43500 would change market trend for on a shorter term to bearish which would try to lead index towards 41700 and 40500. Daily and Hourly momentum is still in bullish momentum and index would try to take an intraday spike during current trading session.