PSX Daily Market Review - 18th Dec 2019
Previous Session Recap
Trading volume at PSX floor increased by 54.50 million shares or 15.23% on DoD basis, whereas the benchmark KSE100 index opened at 41,644.88, posted a day high of 42,056.14 and a day low of 41,025.71 points during last trading session while session suspended at 41,768.66 points with net change of 123.78 points and net trading volume of 253.88 million shares. Daily trading volume of KSE100 listed companies increased by 31.56 million shares or 14.19% on DoD basis.
Foreign Investors remained in net selling positions of 3.81 million shares but value of Foreign Inflow increased by 2.73 million US Dollars. Categorically, Foreign Individuals and Corporate remained in net selling positions of 0.0005 and 6.21 million shares but Overseas Pakistanis remained in net buying positions of 2.41 million shares. While on the other side Local Individuals, NBFCs and Insurance Companies remained in net buying positions of 25.03, 0.07 and 5.69 million shares but Local Companies, Banks, Mutual Fund and Brokers remained in net selling positions of 16.20, 0.99, 2.94 and 6.30 million shares respectively.
Analytical Review
Asia shares eke out another peak, pound fears Brexit redux
Asian stocks camped out at 18-month peaks on Wednesday having climbed for five straight sessions, while the British pound was licking fresh wounds as revived Brexit fears came back to bite it. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.1% to its highest since June last year. Japan's Nikkei .N225 dipped 0.3% and off a 2019 top. Shanghai blue chips .CSI300 added 0.3%, after hitting an eight-month peak on Tuesday, as Beijing trimmed another short-term interest rate. E-Mini futures for the S&P 500 ESc1 were little changed, while EUROSTOXX 50 futures STXEc1 fell 0.1%.
Ogra seeks up to 221pc hike in gas tariff from Jan 1
he Oil and Gas Regulatory Authority (Ogra) has asked the government to increase prices for gas consumers by up to 221 per cent with effect from January 1, 2020 to generate about Rs40 billion in additional funds required by the two gas utilities. In two separate judgments forwarded to the government, the regulator determined about 13pc (Rs82 per unit) increase in average prescribed price to Rs707 per unit for Sui Northern Gas Pipelines Ltd (SNGPL). This would generate more than Rs30bn addition revenue to the company over the next six months.
Auto makers raise prices
Despite decreasing cost of imported parts on account of strengthening of the rupee and steep fall in sales during the first five months of this fiscal year, the auto assemblers on Tuesday gave car and bike buyers a fresh shock by jacking up prices. Pak Suzuki Motor Company Ltd (PSMCL), barring Cultus, raised prices of various models by Rs49,000-90,000 effective Jan 1, 2020. After a jump of Rs80,000-90,000, the new price of Alto VXR and Alto VXL has been fixed at Rs1.398 million and Rs1.598m followed by Rs65,000 and Rs70,000 in WagonR VXR and VXL to Rs1.605m and Rs1.695m respectively. The price of Suzuki Bolan and Bolan Cargo have been raised by Rs49,000 and Rs50,000 followed by hike of Rs58,000 in Ravi. The price of Swift model has been increased by Rs90,000.
Slight increase in textile exports
The exports of textile and clothing grew by 4.68 per cent year-on-year to $5.76 billion during the first five months of 2019-20, showed data released by the Pakistan Bureau of Statistics on Tuesday. The overall improvement in current account after a gap of five years was mainly contributed by increase in exports of textile and clothing and decline in import of oil and food products. In November, textile and clothing export proceeds were recorded at $1.17bn, higher by 7.03pc, from $1.09bn over the corresponding month last year.
Pakistan ranks 151 out of 153 on global gender parity index: World Economic Forum report
Pakistan ranked 151 out of 153 countries on the Global Gender Gap Index Report 2020 index, published by the World Economic Forum (WEF) on Tuesday, only managing to surpass Iraq and Yemen. The scorecard for the country places Pakistan at 150 in economic participation and opportunity, 143 in educational attainment, 149 in health and survival and 93 in political empowerment. A comparison of previous rankings shows that the overall ranking for Pakistan has drastically slipped from 112 in 2006 to 151 in 2020. Likewise, the country slipped from 112 to 150 in economic participation and opportunity, from 110 to 143 in educational attainment, from 112 to 149 in health and survival and from 37 to 93 in political empowerment during the same period.
Asian stocks camped out at 18-month peaks on Wednesday having climbed for five straight sessions, while the British pound was licking fresh wounds as revived Brexit fears came back to bite it. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.1% to its highest since June last year. Japan's Nikkei .N225 dipped 0.3% and off a 2019 top. Shanghai blue chips .CSI300 added 0.3%, after hitting an eight-month peak on Tuesday, as Beijing trimmed another short-term interest rate. E-Mini futures for the S&P 500 ESc1 were little changed, while EUROSTOXX 50 futures STXEc1 fell 0.1%.
he Oil and Gas Regulatory Authority (Ogra) has asked the government to increase prices for gas consumers by up to 221 per cent with effect from January 1, 2020 to generate about Rs40 billion in additional funds required by the two gas utilities. In two separate judgments forwarded to the government, the regulator determined about 13pc (Rs82 per unit) increase in average prescribed price to Rs707 per unit for Sui Northern Gas Pipelines Ltd (SNGPL). This would generate more than Rs30bn addition revenue to the company over the next six months.
Despite decreasing cost of imported parts on account of strengthening of the rupee and steep fall in sales during the first five months of this fiscal year, the auto assemblers on Tuesday gave car and bike buyers a fresh shock by jacking up prices. Pak Suzuki Motor Company Ltd (PSMCL), barring Cultus, raised prices of various models by Rs49,000-90,000 effective Jan 1, 2020. After a jump of Rs80,000-90,000, the new price of Alto VXR and Alto VXL has been fixed at Rs1.398 million and Rs1.598m followed by Rs65,000 and Rs70,000 in WagonR VXR and VXL to Rs1.605m and Rs1.695m respectively. The price of Suzuki Bolan and Bolan Cargo have been raised by Rs49,000 and Rs50,000 followed by hike of Rs58,000 in Ravi. The price of Swift model has been increased by Rs90,000.
The exports of textile and clothing grew by 4.68 per cent year-on-year to $5.76 billion during the first five months of 2019-20, showed data released by the Pakistan Bureau of Statistics on Tuesday. The overall improvement in current account after a gap of five years was mainly contributed by increase in exports of textile and clothing and decline in import of oil and food products. In November, textile and clothing export proceeds were recorded at $1.17bn, higher by 7.03pc, from $1.09bn over the corresponding month last year.
Pakistan ranked 151 out of 153 countries on the Global Gender Gap Index Report 2020 index, published by the World Economic Forum (WEF) on Tuesday, only managing to surpass Iraq and Yemen. The scorecard for the country places Pakistan at 150 in economic participation and opportunity, 143 in educational attainment, 149 in health and survival and 93 in political empowerment. A comparison of previous rankings shows that the overall ranking for Pakistan has drastically slipped from 112 in 2006 to 151 in 2020. Likewise, the country slipped from 112 to 150 in economic participation and opportunity, from 110 to 143 in educational attainment, from 112 to 149 in health and survival and from 37 to 93 in political empowerment during the same period.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index is caged in a rising wedge on daily chart and have retested its supportive regions during last trading session after getting resistance from resistant trend line of said formation. As of now it's expected that index would continue its bullish momentum if it would succeed in penetration above 42,200 points on daily chart because on that region resistant trend line of said wedge would break. It's recommended to post trailing stop loss on existing long positions and stay cautious because in case of rejection index would try to move downward to retest its supportive trend line which fall at 40,200 points while rejection from resistance on intraday basis could confirm formation of an evening shooting star on daily chart. Breakout of this wedge in either direction would call for a further 800-1500pts.
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