PSX Daily Market Review - 13th Jan 2020
Previous Session Recap
TTrading volume at PSX floor increased by 37.59 million shares or 10.37% on DoD basis, whereas the benchmark KSE100 index opened at 42,523.07, posted a day high of 43,241.78 and a day low of 42,523.07 points during last trading session while session suspended at 43,207.05 points with net change of 683.98 points and net trading volume of 303.57 million shares. Daily trading volume of KSE100 listed companies increased by 54.07 million shares or 21.67% on DoD basis.
Foreign Investors remained in net selling positions of 19.31 million shares but value of Foreign Inflow dropped by 0.89 million US Dollars. Categorically, Foreign Individuals, Corporate and Overseas Pakistanis remained in net selling positions of 0.18, 9.57 and 9.55 million shares. While on the other side Local Individuals, Companies, Banks and Insurance Companies remained in net selling positions of 10.66, 2.06, 11.09 and 1.08 million shares but NBFCs, Mutual Fund, Brokers and Insurance Companies remained in net buying positions of 0.75, 20.54 and 23.64 million shares respectively.
Analytical Review
Asia shares flatline, wait for U.S. and China to seal trade deal
Asian shares paused near 19-month peaks on Monday ahead of the expected signing on a Sino-U.S. trade deal, though talks on a phase two package are likely to drag on for months. MSCI’s broadest index of Asia-Pacific shares outside Japan barely budged, having hit the highest since mid-2018 last week. Japan’s Nikkei was closed for a holiday. It fell sharply early last week when Iran attacked bases hosting U.S. military in Iraq, only to rally almost a thousand points when the two countries stepped back from hostilities. E-Mini futures for the S&P 500 edged up 0.1%, to be just off all-time highs. The main event of the week will be the signing of the Phase 1 trade deal between the United States and China on Wednesday. The Trump administration has invited at least 200 people to the White House for the ceremony.
Foreign investors keen to invest in tourism sector in KP: Atif Khan
KP Senior Minister for Tourism Atif Khan Sunday said the international hospitality industries and hotels were taking keen interest in investing and opening a chain of its luxury hotels at different tourist spots of Khyber Pakhtunkhwa (KP) to attract more tourists in the country. Talking to a private news channel, Atif Khan said foreign investors had shown interest in investing in tourism sector which was a positive sign, adding that soft image of the country was being recognized by the whole world now under the new tourism policies of Pakistan Tehreek-e-Insaf government.
Sindh, Balochistan to join hands over gas shortage
After Islamabad again rejected Sindh’s claim to the gas it produces, the Pakistan Tehreek-i-Insaf government at the centre may face another challenge in the shape of a likely partnership between the Pakistan Peoples Party government in Sindh and the Balochistan government over gas shortage in the two provinces. Both governments are mulling over a joint strategy over the gas crisis while toying different ideas to make their case stronger, including protest in parliament and raising the agreed points in the next meeting of the Council of Common Interests (CCI), officials and sources said on Sunday.
Efficiency standards for lighting products to be enforced from 15th
The government has decided to introduce efficiency standards for all lighting products and equipment on Jan 15 as part of an aggressive energy conservation plan for all sectors of economy to reduce energy costs to consumers and be competitive in the market. The Managing Director of the National Energy Efficiency and Conservation Authority (NEECA), Dr Sardar Mohazzam, told Dawn that the minimum energy standards for lighting would come into force on Jan15, for motors in February and then for refrigerators and air-conditioners within the next six months. The NEECA is a federal agency on energy conservation with representation from the provincial governments, the federal ministry of energy and the regulatory authorities to initiate and coordinate all energy conservation activities in various sectors of economy. It was established under the NEECA Act 2016 to enforce necessary measures for efficient energy standards and providing guidelines to provinces and industries.
PIAF calls for bringing discount rate to single digit to encourage FDI
The Pakistan Industrial & Traders Associations Front has urged the State Bank of Pakistan to drastically cut down the discount rate in forthcoming monetary policy, bringing it to a single digit, ensuring availability of cheaper money to cash-starved private sector, besides encouraging the potential foreign investors for investment in Pakistan. PIAF chairman Mian Nauman Kabir, in a joint statement along with senior vice chairman Nasir Hameed and vice chairman Javed Iqbal, said that in the last monetary policy announcement the SBP kept the interest rate unchanged at 13.25 %, creating hardships in to access to finance for the business community as a whole and for SMEs in particular.
Asian shares paused near 19-month peaks on Monday ahead of the expected signing on a Sino-U.S. trade deal, though talks on a phase two package are likely to drag on for months. MSCI’s broadest index of Asia-Pacific shares outside Japan barely budged, having hit the highest since mid-2018 last week. Japan’s Nikkei was closed for a holiday. It fell sharply early last week when Iran attacked bases hosting U.S. military in Iraq, only to rally almost a thousand points when the two countries stepped back from hostilities. E-Mini futures for the S&P 500 edged up 0.1%, to be just off all-time highs. The main event of the week will be the signing of the Phase 1 trade deal between the United States and China on Wednesday. The Trump administration has invited at least 200 people to the White House for the ceremony.
KP Senior Minister for Tourism Atif Khan Sunday said the international hospitality industries and hotels were taking keen interest in investing and opening a chain of its luxury hotels at different tourist spots of Khyber Pakhtunkhwa (KP) to attract more tourists in the country. Talking to a private news channel, Atif Khan said foreign investors had shown interest in investing in tourism sector which was a positive sign, adding that soft image of the country was being recognized by the whole world now under the new tourism policies of Pakistan Tehreek-e-Insaf government.
After Islamabad again rejected Sindh’s claim to the gas it produces, the Pakistan Tehreek-i-Insaf government at the centre may face another challenge in the shape of a likely partnership between the Pakistan Peoples Party government in Sindh and the Balochistan government over gas shortage in the two provinces. Both governments are mulling over a joint strategy over the gas crisis while toying different ideas to make their case stronger, including protest in parliament and raising the agreed points in the next meeting of the Council of Common Interests (CCI), officials and sources said on Sunday.
The government has decided to introduce efficiency standards for all lighting products and equipment on Jan 15 as part of an aggressive energy conservation plan for all sectors of economy to reduce energy costs to consumers and be competitive in the market. The Managing Director of the National Energy Efficiency and Conservation Authority (NEECA), Dr Sardar Mohazzam, told Dawn that the minimum energy standards for lighting would come into force on Jan15, for motors in February and then for refrigerators and air-conditioners within the next six months. The NEECA is a federal agency on energy conservation with representation from the provincial governments, the federal ministry of energy and the regulatory authorities to initiate and coordinate all energy conservation activities in various sectors of economy. It was established under the NEECA Act 2016 to enforce necessary measures for efficient energy standards and providing guidelines to provinces and industries.
The Pakistan Industrial & Traders Associations Front has urged the State Bank of Pakistan to drastically cut down the discount rate in forthcoming monetary policy, bringing it to a single digit, ensuring availability of cheaper money to cash-starved private sector, besides encouraging the potential foreign investors for investment in Pakistan. PIAF chairman Mian Nauman Kabir, in a joint statement along with senior vice chairman Nasir Hameed and vice chairman Javed Iqbal, said that in the last monetary policy announcement the SBP kept the interest rate unchanged at 13.25 %, creating hardships in to access to finance for the business community as a whole and for SMEs in particular.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index was caged in an upward price wedge and right now it's trying to penetrate outside of this in upward direction, It's expected that index would try to close above resistant trend line of this wedge today if it would succeed in maintaining above 42,850 points on hourly chart. It's recommended to stay cautious and start swing trading until index close this week because index have reached its crucial resistant regions and if it would not succeed in closing above 43,860 points on daily or weekly chart then it could slide downward to start a correction. Daily momentum indicators are in uncertain situation as Stochastic and RSI are in bullish mode but MACD have started a bearish trend and it's not expanding itself with market's new highs. It's expected that index would face strong resistances at 43,620 points and 44,250 points from two strong horizontal resistant regions. Mean while 61.8% correction of monthly and weekly charts is being completed at 43,800 points. Therefore it's recommended to post trailing stop loss on existing long positions.
While on flip side it's recommended to avoid initiating short positions until index generate a clear reversal sign or pattern. It would try to find supports at 42,300 and 41,780 points in case of any pressure but index would not enter into bearish zone until it would not succeed in closing below 41,500 points initially and bearish sentiment would get confirmation once index would close below 40,000 points.
While on flip side it's recommended to avoid initiating short positions until index generate a clear reversal sign or pattern. It would try to find supports at 42,300 and 41,780 points in case of any pressure but index would not enter into bearish zone until it would not succeed in closing below 41,500 points initially and bearish sentiment would get confirmation once index would close below 40,000 points.
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