PSX Daily Market Review - 22nd Oct 2019
Previous Session Recap
Trading volume at PSX floor increased by 15.06 million shares or 13.07% on DoD basis, whereas the benchmark KSE100 index opened at 33,871.83, posted a day high of 33,885.47 and a day low of 33,074.86 points during last trading session while session suspended at 33,084.73 points with net change of -785.42 points and net trading volume of 100.27 million shares. Daily trading volume of KSE100 listed companies increased by 10.12 million shares or 11.22% on DoD basis.
Foreign Investors remained in net buying positions of 3.51 million shares and net value of Foreign Inflow increased by 1.06 million US Dollars. Categorically, Foreign Individual and Foreign Corporate remained in net buying positions of 0.04 and 3.48 million shares but Overseas Pakistani investors remained in net selling positions of 0.003 million shares respectively. While on the other side Local Individuals and Brokers remained in net selling positions of 7.29 and 7.92 million shares but Local Companies, Banks, NBFCs, Mutual Funds and Insurance Companies remained in net buying positions of 2.14, 5.14, 0.06, 4.14 and 1.52 million shares respectively.
Analytical Review
Asia hopes for best in trade talks, Brexit vote
Asian share markets made guarded gains on Tuesday amid cheery chatter about the chance of a Sino-U.S. trade deal, while investors were sanguine yet another vote on Brexit would still avert a hard exit for the UK. A holiday in Tokyo kept turnover light and MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added a modest 0.3%. Futures for Japan's Nikkei NKc1 were trading at 22,760, compared to Monday's index close at 22,548 .N225. South Korean stocks .KS11 rose 0.9% and Shanghai blue chips .CSI300 were flat. E-Mini futures for the S&P 500 ESc1 gained 0.15%. China and the United States have achieved some progress in their trade talks, Vice Foreign Minister Le Yucheng said on Tuesday, adding that as long as both sides respected each other, no problem could not be resolved. U.S. President Donald Trump sounded upbeat on a China deal on Monday, while White House adviser Larry Kudlow said tariffs on Chinese goods scheduled for December could be withdrawn if talks go well.
Coca-Cola, WWF-Pakistan collaborate with first green TEDx event
As part of a joint initiative on tackling plastic waste pollution in Pakistan, Coca-Cola and WWF-Pakistan collaborated with Pakistan’s first ever TEDx green event held in Lahore following the theme of ‘Imagined Futures’. The event was organized at the Ali Institute on Sunday, October 20, 2019 and was attended by over 500 guests from all walks of life including students, teachers, professionals and experts from science and humanities.
Losses, liabilities of PSM surge to Rs510b
Overall losses and liabilities of Pakistan Steel Mills (PSM) have surged to Rs510 billion as the government has failed to revive the country’s largest industrial unit. The Senate Standing Committee on Industries and Production was informed that losses and liabilities of PSM had increased by Rs40 billion in last 14 months, taking overall losses to Rs510 billion. The ministry of industries and production has informed the committee that government is working on revival plan for the PSM by adopting model of public-private partnership (PPP). Under the proposed PPP, the government would give some shares and management of the PSM to a private investor to revive the Mill, which is dysfunctional since July 2015.
Senate body slams govt for not coming up with revival plan for PSM, Utility Stores
The Senate Standing Committee on Industries and Production criticised the government on Monday for its failure in coming up with a revival plan for Pakistan Steel Mills (PSM) and Utility Stores Corporation (USC) after more than a year. The committee further noted that a cabinet member was facilitating smuggling of steel scrap from Iran to local re-rolling mills. Committee Chairman Senator Ahmed Khan said the incumbent government was discussing serious issues at every forum including the standing committees but “there was no futuristic approach”. It is unfortunate that the lethargic approach is not only protecting steel mafias in the country but a delay in the revival plan is also increasing the liabilities of PSM and making it less attractive for investors, Senator Khan said.
Pakistan to implement FATF action plan by February: Hafeez
Pakistan is committed to fully implementing its action plan to counter money laundering and terrorist financing by February next year and there’s no disagreement among various governments’ institutions on this matter, says Financial Adviser Abdul Hafeez Shaikh. A global watchdog for money laundering and terrorist financing — the Financial Action Task Force (FATF) — gave Pakistan a four-month lifeline on Friday, urging Islamabad to fulfil its commitments by February 2020. Speaking to the US-based Pakistani media on Sunday evening, Mr Sheikh also highlighted the government’s efforts to revive the national economy. “Basically, all government institutions are on the same page on this issue. We will take the decisions that we need to fight money laundering and terrorist financing,” said the adviser while responding to a question about the FATF deadline.
Asian share markets made guarded gains on Tuesday amid cheery chatter about the chance of a Sino-U.S. trade deal, while investors were sanguine yet another vote on Brexit would still avert a hard exit for the UK. A holiday in Tokyo kept turnover light and MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added a modest 0.3%. Futures for Japan's Nikkei NKc1 were trading at 22,760, compared to Monday's index close at 22,548 .N225. South Korean stocks .KS11 rose 0.9% and Shanghai blue chips .CSI300 were flat. E-Mini futures for the S&P 500 ESc1 gained 0.15%. China and the United States have achieved some progress in their trade talks, Vice Foreign Minister Le Yucheng said on Tuesday, adding that as long as both sides respected each other, no problem could not be resolved. U.S. President Donald Trump sounded upbeat on a China deal on Monday, while White House adviser Larry Kudlow said tariffs on Chinese goods scheduled for December could be withdrawn if talks go well.
As part of a joint initiative on tackling plastic waste pollution in Pakistan, Coca-Cola and WWF-Pakistan collaborated with Pakistan’s first ever TEDx green event held in Lahore following the theme of ‘Imagined Futures’. The event was organized at the Ali Institute on Sunday, October 20, 2019 and was attended by over 500 guests from all walks of life including students, teachers, professionals and experts from science and humanities.
Overall losses and liabilities of Pakistan Steel Mills (PSM) have surged to Rs510 billion as the government has failed to revive the country’s largest industrial unit. The Senate Standing Committee on Industries and Production was informed that losses and liabilities of PSM had increased by Rs40 billion in last 14 months, taking overall losses to Rs510 billion. The ministry of industries and production has informed the committee that government is working on revival plan for the PSM by adopting model of public-private partnership (PPP). Under the proposed PPP, the government would give some shares and management of the PSM to a private investor to revive the Mill, which is dysfunctional since July 2015.
The Senate Standing Committee on Industries and Production criticised the government on Monday for its failure in coming up with a revival plan for Pakistan Steel Mills (PSM) and Utility Stores Corporation (USC) after more than a year. The committee further noted that a cabinet member was facilitating smuggling of steel scrap from Iran to local re-rolling mills. Committee Chairman Senator Ahmed Khan said the incumbent government was discussing serious issues at every forum including the standing committees but “there was no futuristic approach”. It is unfortunate that the lethargic approach is not only protecting steel mafias in the country but a delay in the revival plan is also increasing the liabilities of PSM and making it less attractive for investors, Senator Khan said.
Pakistan is committed to fully implementing its action plan to counter money laundering and terrorist financing by February next year and there’s no disagreement among various governments’ institutions on this matter, says Financial Adviser Abdul Hafeez Shaikh. A global watchdog for money laundering and terrorist financing — the Financial Action Task Force (FATF) — gave Pakistan a four-month lifeline on Friday, urging Islamabad to fulfil its commitments by February 2020. Speaking to the US-based Pakistani media on Sunday evening, Mr Sheikh also highlighted the government’s efforts to revive the national economy. “Basically, all government institutions are on the same page on this issue. We will take the decisions that we need to fight money laundering and terrorist financing,” said the adviser while responding to a question about the FATF deadline.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index have slide below its major supportive region of 33,760 points during last trading session but still have not succeeded in penetration out of its bullish price channel on daily chart. As of now it's expected that index would face an intraday pressure which may push it towards 32,760 points where it would try to find strong support from a horizontal supportive region and if it would succeed in maintaining above that region on hourly closing basis then it's expected that a pullback would be witnessed towards 33,300 and then 33,700 points in coming days. Index would remain bearish until it would succeed in closing above 34,000 points therefore it's recommended to stay on selling side and start selling on strength around 343,700 points with strict stop loss of 33,960 points.
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