PSX Daily Market Review - 14th Oct 2019
Previous Session Recap
Trading volume at PSX floor increased by 25.54 million shares or 9.76% on DoD basis, whereas the benchmark KSE100 index opened at 34,091.49, posted a day high of 34,689.30 and a day low of 34,027.70 points during last trading session while session suspended at 34,475.69 points with net change of 447.99 points and net trading volume of 200.26 million shares. Daily trading volume of KSE100 listed companies increased by 14.77 million shares or 7.96% on DoD basis.
Foreign Investors remained in net selling positions of 0.31 million shares but net value of Foreign Inflow increased by 0.58 million US Dollars. Categorically, Foreign Individual and Foreign Corporate remained in net selling positions of 0.15 and 24.07 million shares but Overseas Pakistanis investors remained in net buying positions of 23.91 million shares. While on the other side Local Individuals, Banks, NBFCs, Brokers and Insurance Companies remained in net selling positions of 24.53, 3.27, 1.01, 1.12 and 0.52 million shares respectively but Local Companies and Mutual Fund remained in net buying positions of 16.97 and 9.57 million shares respectively.
Analytical Review
Asia relieved at latest trade truce, China data disappoints
Asian share markets firmed on Monday as signs of progress in the Sino-U.S. trade standoff whetted risk appetite, though investors were wary of the damage already done to the global economy. Indeed, data out from China underlined the pain felt with dollar-denominated exports and imports both falling by more than expected in September. Liquidity was also lacking with Japan off and a partial market holiday in the United States for Columbus Day. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 1.1% in light trade. Australia's main index gained 0.7% and South Korea .KS11 1.3%. Shanghai blue chips .CSI300 added 1.6%. While Tokyo was on holiday, Nikkei futures were trading at 22,075 NKc1 compared with a Friday close of 21,798 in the Nikkei cash index. E-Mini futures for the S&P 500 ESc1 nudged up 0.2% after jumping on Friday. Sentiment had been boosted when U.S. President Donald Trump outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike, though officials on both sides said much more work needed to be done.
Lack of additional storage leads to 11.65 MAF water wastage in Kharif season 2019
Lack of additional water reservoirs in country resulted wastage of 11.65 million acre feet (MAF) during the Kharif Season. “Due to absence of adequate water storage in the country, 11.65 MAF surplus water released downstream Kotri could not be stored during the Kharif season 2019,” official sources told APP here. They said the expected 15 per cent water shortage for the current Rabi season could also be eliminated after meeting ecological and sea intrusion needs if, there were additional water storage capacity. They said the Indus River System Authority had also unanimously agreed that additional water storage should be constructed on war footing wherever feasible on the rivers. It is pertinent to mention here that the IRSA’s had forecasted 15 per cent water shortage for Sindh and Punjab in Rabi season 2019-20.
Japan announces $5.2m aid to support Pak agriculture industry
Pakistan and Japan are looking for increasing bilateral cooperation in agricultural-based industry and value addition as Japan has already announced grant aid to enhance productivity and capacities in relevant agricultural fields. Recently Japan has announced a grand aid of $5.2 million to support Agri-Food and Agro-Industry development in the country’s Khyber Pakhtunkhwa and Balochistan provinces through the United Nations Industrial Development Organization (UNIDO), Minister and Deputy Head of Mission, Embassy of Japan in Pakistan Yusuke Shindo told APP.
Balochistan govt to initiate modernisation of agriculture
The Balochistan government has initiated radical steps to modernise dilapidated agriculture sector of the province and to introduce latest equipment and techniques to cope with the drought areas of the province. The province has huge potential in the agro sector but water scarcity and prolonged drought had badly destroyed the agriculture of the province, said spokesperson of Balochistan government, Liaquat Shahwani. The Balochistan government, he said was taking initiatives to resolve issues in agriculture sector in the province on priority basis. Shahwani said that agriculture is the backbone of country’s economy and it provides 50 percent employment opportunities to the country’s workforce.
Putin vows to help ‘Arab partners’ fend off attempt to upset oil market
Russian President Vladimir Putin said in remarks aired on Sunday that global oil inventories need cutting to “reasonable levels” and that Russia would work with Saudi Arabia and other partners to “reduce to zero” attempts to destabilise oil markets. Putin was speaking in an interview with Arab broadcasters including Al Arabiya TV ahead of a visit to Saudi Arabia, which comes after attacks on Saudi oil plants on Sept 14 that initially halved the output of the world’s top oil exporter. He said that a series of strikes — on oil tankers in Gulf waters and more limited assaults on Saudi oil assets — in recent months would strengthen cooperation between producers inside and outside OPEC, an alliance known as OPEC+.
Asian share markets firmed on Monday as signs of progress in the Sino-U.S. trade standoff whetted risk appetite, though investors were wary of the damage already done to the global economy. Indeed, data out from China underlined the pain felt with dollar-denominated exports and imports both falling by more than expected in September. Liquidity was also lacking with Japan off and a partial market holiday in the United States for Columbus Day. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 1.1% in light trade. Australia's main index gained 0.7% and South Korea .KS11 1.3%. Shanghai blue chips .CSI300 added 1.6%. While Tokyo was on holiday, Nikkei futures were trading at 22,075 NKc1 compared with a Friday close of 21,798 in the Nikkei cash index. E-Mini futures for the S&P 500 ESc1 nudged up 0.2% after jumping on Friday. Sentiment had been boosted when U.S. President Donald Trump outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike, though officials on both sides said much more work needed to be done.
Lack of additional water reservoirs in country resulted wastage of 11.65 million acre feet (MAF) during the Kharif Season. “Due to absence of adequate water storage in the country, 11.65 MAF surplus water released downstream Kotri could not be stored during the Kharif season 2019,” official sources told APP here. They said the expected 15 per cent water shortage for the current Rabi season could also be eliminated after meeting ecological and sea intrusion needs if, there were additional water storage capacity. They said the Indus River System Authority had also unanimously agreed that additional water storage should be constructed on war footing wherever feasible on the rivers. It is pertinent to mention here that the IRSA’s had forecasted 15 per cent water shortage for Sindh and Punjab in Rabi season 2019-20.
Pakistan and Japan are looking for increasing bilateral cooperation in agricultural-based industry and value addition as Japan has already announced grant aid to enhance productivity and capacities in relevant agricultural fields. Recently Japan has announced a grand aid of $5.2 million to support Agri-Food and Agro-Industry development in the country’s Khyber Pakhtunkhwa and Balochistan provinces through the United Nations Industrial Development Organization (UNIDO), Minister and Deputy Head of Mission, Embassy of Japan in Pakistan Yusuke Shindo told APP.
The Balochistan government has initiated radical steps to modernise dilapidated agriculture sector of the province and to introduce latest equipment and techniques to cope with the drought areas of the province. The province has huge potential in the agro sector but water scarcity and prolonged drought had badly destroyed the agriculture of the province, said spokesperson of Balochistan government, Liaquat Shahwani. The Balochistan government, he said was taking initiatives to resolve issues in agriculture sector in the province on priority basis. Shahwani said that agriculture is the backbone of country’s economy and it provides 50 percent employment opportunities to the country’s workforce.
Russian President Vladimir Putin said in remarks aired on Sunday that global oil inventories need cutting to “reasonable levels” and that Russia would work with Saudi Arabia and other partners to “reduce to zero” attempts to destabilise oil markets. Putin was speaking in an interview with Arab broadcasters including Al Arabiya TV ahead of a visit to Saudi Arabia, which comes after attacks on Saudi oil plants on Sept 14 that initially halved the output of the world’s top oil exporter. He said that a series of strikes — on oil tankers in Gulf waters and more limited assaults on Saudi oil assets — in recent months would strengthen cooperation between producers inside and outside OPEC, an alliance known as OPEC+.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index is being capped by a horizontal resistant region along with a descending trend line while completing 4th primary wave its bearish weekly elliot wave. It's recommended to stay cautious while trading during current trading session as index would try to penetrate above its major resistant region of 34,660 points but it would remain uncertain until index would succeed in closing above 34,660 points on daily and weekly basis. A volatile session could be witnessed as index would try to change its trend towards bearish direction and if index would succeed in sliding below 34,000 points then a new bearish rally would start its impact.
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