PSX Daily Market Review - 22nd Nov 2019
Previous Session Recap
Trading volume at PSX floor dropped by 95.08 million shares or 29.02% on DoD basis, whereas the benchmark KSE100 index opened at 38,037.68, posted a day high of 38,096.56 and a day low of 37,033.45 points during last trading session while session suspended at 37,101.31 points with net change of -936.37 points and net trading volume of 146.54 million shares. Daily trading volume of KSE100 listed companies dropped by 39.96 million shares or 21.73% on DoD basis.
Foreign Investors remained in net buying positions of 1.23 million shares and net value of Foreign Inflow increased by 1.81 million US Dollars. Categorically, Foreign Individual and Overseas Pakistanis remained in net selling positions of 0.09 and 0.63 million shares but Foreign Corporate Investors remained in net buying positions of 1.94 million shares. While on the other side Local Individuals, Companies and Banks remained in net buying positions of 10.22, 1.49 and 26.15 million shares but NBFCs, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 0.22, 14.48, 24.98 and 0.38 million shares respectively.
Analytical Review
Asian shares up from three-week lows, but trade uncertainty nags
Asian equities rose on Friday, bouncing from a three-week low touched a day earlier, but gains were capped by persistent worries over the status of trade negotiations between China and the United States. Early in the Asian trading day, MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.12%. The index had fallen as much as 1.41% on Thursday, hitting its lowest level since October 30, on concerns that U.S. legislation on Hong Kong threatened to undermine trade talks between the world’s two largest economies. Australian shares were up 0.52% and Japan's Nikkei .N225 gained 0.1%. Worries that a "phase one" trade deal between the United States and China might not occur until next year weighed on investor sentiment on Wall Street overnight, pulling the S&P 500 .SPX down 0.16% to 3,103.54, the Dow Jones down 0.2% to 27,766.29 and the Nasdaq Composite .IXIC 0.24% lower to 8,506.21.
Pakistan to make fresh attempt for recovering $800m against privatisation of PTCL
Pakistan has decided to make fresh attempt for resolving more than 14-year pending issue with UAE-based telecom firm Etisalat for recovering due amount of $800 million against the privatisation of Pakistan Telecommunication Company Limited (PTCL).Pakistan had to recover $800 million from UAE-based telecom since 2005 but three successive governments had failed to resolve the issue. In July 2005, Etisalat had bought 26% shares in PTCL with management control at a price of $2.6 billion. After coming to know the second lowest bid was actually $1.4 billion, the UAE-based firm tried to backtrack from the offer. In March 2006, the then government signed an agreement with Etisalat under which 3,384 properties of the PTCL had to be handed over to the company. Etisalat had paid $1.4 billion upfront payment against privatisation of PTCL in 2005-06. However, it had stopped the remaining instalments amounting to $800m until the status of PTCL’s owned properties was cleared, which has remained a bone of contention for the last 12 years.
Pakistan needs to create more jobs: WB
TThe country’s economy needs to create more jobs by taking advantage of the large influx of a well-educated young labour force, says a new research by the World Bank. The ‘Labour Market Analysis’ using data from a Pakistani online job portal finds that although there is an excess supply of highly educated workers, certain industries, such as information and communications technology (ICT), lack workers who have specialised skills and experience. One of the key findings is that there are insufficient jobs where bachelor and graduate degree holders are expected to use their acquired skills. The labour market tightness at the post-secondary level is low.
Land acquisition cost for Dasu project doubles to Rs37bn
A Senate Panel on Thursday expressed concern over the slow pace of progress to acquire land for Rs510 billion Dasu Hydropower Project and sought an an explanation from the Khyber Pakhtunkhwa government. The Senate Standing Committee on Water Resources led by Senator Shamim Afridi was informed that only 7.5 per cent, of total 9,875 acres of land required for the project, had so far been acquired. It was reported that the cost of land acquisition had also increased by around 95pc from Rs19bn to Rs37bn. The committee was informed by Water and Power Development Authority Member (Wapda) member that the total capacity of Dasu project was 4,320MW and it will be completed in two phases.
OECD warns global growth ‘weakest since financial crisis’
The OECD trimmed its outlook for the global economy on Thursday, saying the world was headed for its weakest economic growth since the 2007-2008 financial crisis. Urging governments to invest in digital and climate transformation, the Organisation for Economic Co-operation and Development said activity had been hobbled by weaker trade and investment in the past two years, as US President Donald Trump and Chinese leaders continue to be locked in a trade conflict. The OECD now expects economic activity around the world to expand by 2.9 per cent next year, a decline of 0.1 percentage points from a previous forecast issued in September.
Asian equities rose on Friday, bouncing from a three-week low touched a day earlier, but gains were capped by persistent worries over the status of trade negotiations between China and the United States. Early in the Asian trading day, MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.12%. The index had fallen as much as 1.41% on Thursday, hitting its lowest level since October 30, on concerns that U.S. legislation on Hong Kong threatened to undermine trade talks between the world’s two largest economies. Australian shares were up 0.52% and Japan's Nikkei .N225 gained 0.1%. Worries that a "phase one" trade deal between the United States and China might not occur until next year weighed on investor sentiment on Wall Street overnight, pulling the S&P 500 .SPX down 0.16% to 3,103.54, the Dow Jones down 0.2% to 27,766.29 and the Nasdaq Composite .IXIC 0.24% lower to 8,506.21.
Pakistan has decided to make fresh attempt for resolving more than 14-year pending issue with UAE-based telecom firm Etisalat for recovering due amount of $800 million against the privatisation of Pakistan Telecommunication Company Limited (PTCL).Pakistan had to recover $800 million from UAE-based telecom since 2005 but three successive governments had failed to resolve the issue. In July 2005, Etisalat had bought 26% shares in PTCL with management control at a price of $2.6 billion. After coming to know the second lowest bid was actually $1.4 billion, the UAE-based firm tried to backtrack from the offer. In March 2006, the then government signed an agreement with Etisalat under which 3,384 properties of the PTCL had to be handed over to the company. Etisalat had paid $1.4 billion upfront payment against privatisation of PTCL in 2005-06. However, it had stopped the remaining instalments amounting to $800m until the status of PTCL’s owned properties was cleared, which has remained a bone of contention for the last 12 years.
TThe country’s economy needs to create more jobs by taking advantage of the large influx of a well-educated young labour force, says a new research by the World Bank. The ‘Labour Market Analysis’ using data from a Pakistani online job portal finds that although there is an excess supply of highly educated workers, certain industries, such as information and communications technology (ICT), lack workers who have specialised skills and experience. One of the key findings is that there are insufficient jobs where bachelor and graduate degree holders are expected to use their acquired skills. The labour market tightness at the post-secondary level is low.
A Senate Panel on Thursday expressed concern over the slow pace of progress to acquire land for Rs510 billion Dasu Hydropower Project and sought an an explanation from the Khyber Pakhtunkhwa government. The Senate Standing Committee on Water Resources led by Senator Shamim Afridi was informed that only 7.5 per cent, of total 9,875 acres of land required for the project, had so far been acquired. It was reported that the cost of land acquisition had also increased by around 95pc from Rs19bn to Rs37bn. The committee was informed by Water and Power Development Authority Member (Wapda) member that the total capacity of Dasu project was 4,320MW and it will be completed in two phases.
The OECD trimmed its outlook for the global economy on Thursday, saying the world was headed for its weakest economic growth since the 2007-2008 financial crisis. Urging governments to invest in digital and climate transformation, the Organisation for Economic Co-operation and Development said activity had been hobbled by weaker trade and investment in the past two years, as US President Donald Trump and Chinese leaders continue to be locked in a trade conflict. The OECD now expects economic activity around the world to expand by 2.9 per cent next year, a decline of 0.1 percentage points from a previous forecast issued in September.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index have penetrated below its initial major supportive region of 37,500 points during last trading session and now daily momentum have confirmed its bearish direction after confirmation of an evening star. As of now it's expected that index would try to target 36,500 points where it would find strong support, if a pullback would took place then index would face major resistances at 37,500 and 37,800 points. It's recommended to stay cautious because index would try to open with a negative gap below 37,000 points, but some volatile moves could be witnessed during the day. Index would remain bearish in coming days until it would succeed in closing above 37,800 points. while today's closing below 36,800 points would add further pressure on index.
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