PSX Daily Market Review - 11th Oct 2019
Previous Session Recap
Trading volume at PSX floor increased by 23.88 million shares or 10.05% on DoD basis, whereas the benchmark KSE100 index opened at 33,525.41, posted a day high of 34,047.11 and a day low of 33,523.74 points during last trading session while session suspended at 34,027.70 points with net change of 503.96 points and net trading volume of 185.49 million shares. Daily trading volume of KSE100 listed companies increased by 25.30 million shares or 15.79% on DoD basis.
Foreign Investors remained in net selling positions of 2.46 million shares and net value of Foreign Inflow dropped by 1.90 million US Dollars. Categorically, Foreign Individual and Foreign Corporate remained in net selling positions of 0.05 and 3.08 million shares but Overseas Pakistanis investors remained in net buying positions of 0.68 million shares. While on the other side Local Individuals, Banks, NBFCs and Mutual Fund remained in net buying positions of 0.73, 1.11, 0.21 and 6.67 million shares respectively but Local Companies, Mutual Fund and Insurance Companies remained in net selling positions of 4.78, 0.85 and 0.77 million shares respectively.
Analytical Review
Asian shares up as 'very good' trade talks boost risk appetite
Asian shares rose on Friday after U.S. President Donald Trump said he would meet with China’s top trade negotiator, stirring hopes for an agreement, while sterling was flat after earlier jumping on optimism over a potential Brexit deal. Investors' renewed appetite for riskier assets continued to weigh on the safe-haven yen JPY= and U.S. Treasury prices, while oil stayed firm on comments about possible supply cuts from the head of OPEC. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.2%, following on from gains on Wall Street. S&P e-mini futures ESc1 added more than 0.3%. Australian shares climbed 0.8%, while Japan's Nikkei stock index .N225 gained 1%. Chinese blue-chips .CSI300 added 0.5%. The bullish market mood came after a first day of trade talks between top U.S. and Chinese negotiators, characterized by Trump as “very, very good.” A White House official said the talks had gone “probably better than expected” and a U.S. Chamber of Commerce official briefed by both sides raised the possibility of a currency agreement this week.
SCCI, Portugal diplomat agree to bolster mutual economic, trade ties
Sarhad Chamber of Commerce and Industry (SCCI) President Engr Maqsood Anwar Pervaiz and Ambassador of Portugal to Pakistan, Mr Paulo Neves Pocinho agreed to make joint efforts to give boost to mutual trade and economic relations between Pakistan and Portugal. The agreement came during a meeting at the chamber house here on Thursday. Engr Maqsood Anwar invited the Portuguese investors to make investment in hydel power generation, oil and gas, LPG, mines and mineral, gemstones, agriculture, medicine, fruits, livestock, honey and other potential sectors.
Meezan Bank and Hyundai Nishat Motor signs MoU
Meezan Bank Limited, Pakistan’s largest Islamic Bank and the Best Bank in Pakistan and Hyundai Nishat Motor (Private) Limited, a project of Nishat Group recently signed a Memorandum of Understanding to jointly promote Hyundai commercial vehicles in Pakistan by providing convenient financing terms with a residual value option.
Germany to provide €23.4m technical assistance for social, technical sectors
Pakistan and Germany on Thursday signed an agreement for technical assistance under the Pakistan-Germany Development Programme worth Euro 23.4 Million, (equivalent to Rs3.9 Billion) for social protection and support for local governance. Secretary, Economic Affairs Division, Noor Ahmed, and the Ambassador of Germany to Pakistan Bernhard Stephan Schlagheck, signed an agreement for technical assistance under the Pakistan-Germany Development Programme worth Euro 23.4 Million, equivalent to Rs3.9 Billion. Federal Minister for Economic Affairs Muhammad Hammad Azhar, witnessed the signing ceremony of Technical Cooperation Agreement with the Government of Federal Republic of Germany.
Gas companies prepare Rs55bn subsidy bill for winter supplies
Winter gas supplies face growing challenges as the Sui Southern Gas Company Ltd and Sui Northern Gas Pipelines Ltd, also known as “the Sui sisters", could require up to Rs55 billion in subsidies to divert expensive imported Liquefied Natural Gas (LNG) to meet demand from domestic consumers. Last year, the government subsidised LNG for domestic consumers for the first time and paid Rs29bn to ensure that the price difference between imported and domestic gas did not pass through to household consumers. The LNG average price works out at about Rs1,580 per mmcfd compared to Rs300 per mmcfd of average sale price for domestic consumers. The Economic Coordination Committee (ECC) will now review the matter in its next meeting where both companies are preparing a vigorous representation.
Asian shares rose on Friday after U.S. President Donald Trump said he would meet with China’s top trade negotiator, stirring hopes for an agreement, while sterling was flat after earlier jumping on optimism over a potential Brexit deal. Investors' renewed appetite for riskier assets continued to weigh on the safe-haven yen JPY= and U.S. Treasury prices, while oil stayed firm on comments about possible supply cuts from the head of OPEC. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.2%, following on from gains on Wall Street. S&P e-mini futures ESc1 added more than 0.3%. Australian shares climbed 0.8%, while Japan's Nikkei stock index .N225 gained 1%. Chinese blue-chips .CSI300 added 0.5%. The bullish market mood came after a first day of trade talks between top U.S. and Chinese negotiators, characterized by Trump as “very, very good.” A White House official said the talks had gone “probably better than expected” and a U.S. Chamber of Commerce official briefed by both sides raised the possibility of a currency agreement this week.
Sarhad Chamber of Commerce and Industry (SCCI) President Engr Maqsood Anwar Pervaiz and Ambassador of Portugal to Pakistan, Mr Paulo Neves Pocinho agreed to make joint efforts to give boost to mutual trade and economic relations between Pakistan and Portugal. The agreement came during a meeting at the chamber house here on Thursday. Engr Maqsood Anwar invited the Portuguese investors to make investment in hydel power generation, oil and gas, LPG, mines and mineral, gemstones, agriculture, medicine, fruits, livestock, honey and other potential sectors.
Meezan Bank Limited, Pakistan’s largest Islamic Bank and the Best Bank in Pakistan and Hyundai Nishat Motor (Private) Limited, a project of Nishat Group recently signed a Memorandum of Understanding to jointly promote Hyundai commercial vehicles in Pakistan by providing convenient financing terms with a residual value option.
Pakistan and Germany on Thursday signed an agreement for technical assistance under the Pakistan-Germany Development Programme worth Euro 23.4 Million, (equivalent to Rs3.9 Billion) for social protection and support for local governance. Secretary, Economic Affairs Division, Noor Ahmed, and the Ambassador of Germany to Pakistan Bernhard Stephan Schlagheck, signed an agreement for technical assistance under the Pakistan-Germany Development Programme worth Euro 23.4 Million, equivalent to Rs3.9 Billion. Federal Minister for Economic Affairs Muhammad Hammad Azhar, witnessed the signing ceremony of Technical Cooperation Agreement with the Government of Federal Republic of Germany.
Winter gas supplies face growing challenges as the Sui Southern Gas Company Ltd and Sui Northern Gas Pipelines Ltd, also known as “the Sui sisters", could require up to Rs55 billion in subsidies to divert expensive imported Liquefied Natural Gas (LNG) to meet demand from domestic consumers. Last year, the government subsidised LNG for domestic consumers for the first time and paid Rs29bn to ensure that the price difference between imported and domestic gas did not pass through to household consumers. The LNG average price works out at about Rs1,580 per mmcfd compared to Rs300 per mmcfd of average sale price for domestic consumers. The Economic Coordination Committee (ECC) will now review the matter in its next meeting where both companies are preparing a vigorous representation.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index moving in an upward price channel and right now it's going to target resistant trend line of said channel at 34,400 points. As of now its recommended to start selling on strength in chunks with strict stop loss of 34,760 points on intraday basis. Daily momentum is in mixed mode therefore strict stop loss is recommended. While on flipside if index would not succeed in penetration above 34,400 points then a downward dip would be witnessed towards 34,000 and 33,70 points. If index would succeed in closing below 34,000 points on weekly basis then in coming days a serious bearish rally could be witnessed.
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