PSX Daily Market Review - 28th Oct 2019
Previous Session Recap
Trading volume at PSX floor increased by 49.53 million shares or 40.83% on DoD basis, whereas the benchmark KSE100 index opened at 33,762.48, posted a day high of 33,943.81 and a day low of 33,597.86 points during last trading session while session suspended at 33,657.46 points with net change of -105.02 points and net trading volume of 114.54 million shares. Daily trading volume of KSE100 listed companies increased by 46.89 million shares or 69.31% on DoD basis.
Foreign Investors remained in net selling positions of 8.58 million shares and net value of Foreign Inflow dropped by 0.69 million US Dollars. Categorically, Foreign Individual & Foreign Corporate remained in net selling positions of 0.26 and 29.11 million shares but Overseas Pakistanis investors remained in net buying positions of 20.80 million shares. While on the other side Local Individuals, NBFCs and Brokers remained in net buying positions of 10.81, 0.12 and 2.97 million shares respectively but Local Companies, Banks, Mutual Fund and Insurance Companies remained in net selling positions of 1.61, 0.74, 0.56 and 1.26 million shares respectively.
Analytical Review
Asian shares rise to three-month highs, dollar waits for Fed
Asian shares extended gains on Monday to hit a three-month high as risk assets got a fillip from hopes of a U.S.-China trade deal as soon as next month while the dollar marked time as focus shifts to a U.S. rate decision. In early Asian trades, MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.3% for its third straight day of gains to 518.29, the highest since late July. Chinese shares were a tad firmer with the blue-chip CSI 300 .CSI300 up 0.2%. Hong Kong's Hang Seng index .HSI jumped 0.7% while Australian shares climbed 0.1%. Japan's Nikkei .N225 was also upbeat, rising 0.3% to a decade high. The gains came after a positive session in U.S. and European markets on Friday. U.S. and Chinese officials are “close to finalising” some parts of a trade agreement after high-level telephone discussions on Friday, the U.S. Trade Representative’s office and China’s Commerce Ministry said, with talks to continue.
IMF mission arrives to evaluate performance under loan programme
The International Monetary Fund (IMF) has sent its mission to review and evaluate Pakistan’s performance on implementation of its 39-month-long extended fund facility (EFF) worth $6billion to the debt-ridden country as it hopes to secure the next tranche of approximately $460 million. The IMF mission will review Pakistan’s performance against six performance criteria related to Net International Reserves (NIR), Net Domestic Assets (NDA), net foreign currency swap position, primary budget deficit target, net government borrowing from the central bank and stock of sovereign guarantees issued by the government.
Auto manufacturers await EV Policy to get industrial boost
Local car manufacturers are anxiously waiting for Electric Vehicle policy, drafted by the present government to encourage production of battery-run automobiles which would be environment-friendly and cost-effective. “The government has already sent the draft of the Electric Vehicle Policy to the quarters concerned for formal approval,” said the official source in the Ministry of Climate Change on Wednesday. After a shocking ratio of vehicular emissions in the ambient air pollution across the country, the present government has drafted Electric Vehicle Policy to usher a new era of green development by promoting electric cars.
FIEDMC allocates Rs2.5 billion for development of M-3 Industrial City
Faisalabad Industrial Estate Development and Management Company (FIEDMC) Chairman Mian Kashif Ashfaq Wednesday said about Rs2.5 billion have been allocated for the development projects of state of the art M-3 Industrial City. This decision was taken at a board meeting chaired by him here in which it was also decided that on the pattern of Faisalabad Express, another new road from Sahianwala to Chiniot will be constructed to get easy access to Special Economic Zone (SEZ)," says a press release issued here. Besides this, Chairman FIEDMC also approved to build two new grid stations to generate 40 megawatt electricity for M-3 Industrial City and the meeting also gave go ahead for Safe City Project to protect lives and properties of the investors and industrialists.
SNGPL, SSGC execute 39 pipeline projects in six years
Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) have executed as many as 39 pipeline projects during the last six years to reinforce transmission network in their respective operational areas. The SNGPL and SSGC initiated around 16 and 23 infrastructure development projects respectively, “Out of which several have been completed fully and some partially till date,” a senior official privy to the petroleum sector developments told APP. During the current fiscal year, he said the companies under a strategy to reinforce and expand their transmission network would lay additional 13,599 kilometers.
Asian shares extended gains on Monday to hit a three-month high as risk assets got a fillip from hopes of a U.S.-China trade deal as soon as next month while the dollar marked time as focus shifts to a U.S. rate decision. In early Asian trades, MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.3% for its third straight day of gains to 518.29, the highest since late July. Chinese shares were a tad firmer with the blue-chip CSI 300 .CSI300 up 0.2%. Hong Kong's Hang Seng index .HSI jumped 0.7% while Australian shares climbed 0.1%. Japan's Nikkei .N225 was also upbeat, rising 0.3% to a decade high. The gains came after a positive session in U.S. and European markets on Friday. U.S. and Chinese officials are “close to finalising” some parts of a trade agreement after high-level telephone discussions on Friday, the U.S. Trade Representative’s office and China’s Commerce Ministry said, with talks to continue.
The International Monetary Fund (IMF) has sent its mission to review and evaluate Pakistan’s performance on implementation of its 39-month-long extended fund facility (EFF) worth $6billion to the debt-ridden country as it hopes to secure the next tranche of approximately $460 million. The IMF mission will review Pakistan’s performance against six performance criteria related to Net International Reserves (NIR), Net Domestic Assets (NDA), net foreign currency swap position, primary budget deficit target, net government borrowing from the central bank and stock of sovereign guarantees issued by the government.
Local car manufacturers are anxiously waiting for Electric Vehicle policy, drafted by the present government to encourage production of battery-run automobiles which would be environment-friendly and cost-effective. “The government has already sent the draft of the Electric Vehicle Policy to the quarters concerned for formal approval,” said the official source in the Ministry of Climate Change on Wednesday. After a shocking ratio of vehicular emissions in the ambient air pollution across the country, the present government has drafted Electric Vehicle Policy to usher a new era of green development by promoting electric cars.
Faisalabad Industrial Estate Development and Management Company (FIEDMC) Chairman Mian Kashif Ashfaq Wednesday said about Rs2.5 billion have been allocated for the development projects of state of the art M-3 Industrial City. This decision was taken at a board meeting chaired by him here in which it was also decided that on the pattern of Faisalabad Express, another new road from Sahianwala to Chiniot will be constructed to get easy access to Special Economic Zone (SEZ)," says a press release issued here. Besides this, Chairman FIEDMC also approved to build two new grid stations to generate 40 megawatt electricity for M-3 Industrial City and the meeting also gave go ahead for Safe City Project to protect lives and properties of the investors and industrialists.
Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) have executed as many as 39 pipeline projects during the last six years to reinforce transmission network in their respective operational areas. The SNGPL and SSGC initiated around 16 and 23 infrastructure development projects respectively, “Out of which several have been completed fully and some partially till date,” a senior official privy to the petroleum sector developments told APP. During the current fiscal year, he said the companies under a strategy to reinforce and expand their transmission network would lay additional 13,599 kilometers.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 Index is being capped by a crossover of a horizontal resistant line with a rising trend line on daily chart while index have already completed its 61.8% correction at the same region and it's expected that these three elements would try to cap any bullish spike and would push index in downward direction during current trading session. it's expected that index would face strong resistance at 33,960 points and it would remain bearish until unless succeed in closing above this region. it's recommended to start selling on strength with strict stop loss at 34,000 points because index would try to target 33,400 points and breakout below that region will call for a sharp rally towards 33,066 points. while on flipside breakout above 34,000 points will call for 34,200 and 34,500 points.
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