PSX Daily Market Review - 23rd Jan 2020
Previous Session Recap
Trading volume at PSX floor increased by 0.42 million shares or 0.24% on DoD basis, whereas the benchmark KSE100 index opened at 42,634.75, posted a day high of 42,675.42 and a day low of 42,144.47 points during last trading session while session suspended at 42,561.27 points with net change of -65.21 points and net trading volume of 118.31 million shares. Daily trading volume of KSE100 listed companies also dropped by 4.19 million shares or 3.42% on DoD basis.
Foreign Investors remained in net selling positions of 4.21 million shares but net value of Foreign Inflow dropped by 1.34 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistani remained in net buying positions of 0.10 and 0.43 million shares but Foreign Corporate investors remained in net selling positions of 4.73 million shares. While on the other side Local Individuals, Companies, NBFCs and Insurance Companies remained in net buying positions of 4.54, 0.73, 0.79 and 0.72 million shares but Banks, Mutual Fund and Brokers remained in net selling positions of 0.67, 2.45 and 1.33 million shares respectively.
Analytical Review
Asian shares wilt, oil tumbles as China virus spreads
Asian shares and U.S. stocks fell on Thursday as investors remained anxious about the spread of a new flu-like virus in China just as millions prepared to travel for the Lunar New Year. Oil futures tumbled to seven-week lows as the contagion was expected to hit airline travel, while the International Energy Agency’s warning of an oil surplus and a larger-than-expected increase in U.S. crude inventories re-kindled fears of excess supply. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.45%. Blue chip Chinese shares .CSI300 slumped 0.91%. Australian shares were down 0.57%, while Japan's Nikkei stock index .N225 slid 0.6%. The Chinese yuan fell toward a two-week low, while safe-havens such as the Japanese yen, gold, and U.S. Treasuries rose before a travel blockade of the Chinese city, Wuhan, at the center of the outbreak starts later on Thursday.
Half-yearly uplift spending rises to 55pc of allocation
The government has increased development spending to about 55 per cent of its budgetary allocations, significantly higher than last year’s 35pc during the corresponding period. The data released by the Planning Commission shows that it has approved Rs384 billion disbursements for development projects as of January 17 against a budgetary allocation of Rs701bn, accounting for 55pc. Exactly during the same period last year, the Planning Commission had approved release of Rs233bn for development schemes against a budgetary allocation of Rs675bn, accounting for 35pc. As part of the accelerated disbursements, the government has so far released Rs18.6bn for the development schemes of its parliamentarians under the account of Sustainable Development Goals (SDG) against an allocation of Rs24bn for the full year, showing a 78pc spending in just six months.
Govt decides to revive $2b KCR project
The government has decided to revive the $2b Karachi Circular Railway project and directed EAD for finalisation of the implementation mechanism for framework agreement under CPEC. Federal Minister for Planning, Development and Special Initiatives Asad Umar chaired a meeting to discuss the Karachi Circular Railway project here on Wednesday. Secretaries of Ministries of Planning, Finance, EAD, Communications and senior officials of Planning Commission participated in the meeting. The meeting discussed various issues hampering the implementation of KCR project as indicated by the government of Sindh. The minister was given a detailed briefing on the project. It was informed that PC-I of KCR project was approved in October 2017, by the ECNEC at the total cost of $1,971 million, however no progress could be made in arranging the financing for the project.
Universal Service Fund Co approves award of contracts worth Rs680m to Telenor, Jazz
Universal Service Fund Company has given approval of award of contracts to Telenor and PMCL (Jazz) worth Rs680 million for Kurram and Sanghar lots. Federal Secretary Ministry of Information Technology and Telecommunication Shoaib Ahmad Siddiqui chaired 68th Board of Directors meeting of Universal Service Fund Company on Wednesday. According to details, PMCL (Jazz) is being awarded the contract of Kurram Lot while Telenor is being awarded the contract of Sanghar Lot under Next Generation Broadband for Sustainable Development (NG-BSD) Programme. This is part of the inclusive approach of the Government and to strengthen the pillar of connectivity under Digital Pakistan.
NA body expresses satisfaction over terms and conditions for 2 new LNG terminals
National Assembly Standing Committee on Maritime Affairs on Wednesday termed the terms and conditions on which two new LNG terminals are being installed at Port Qasim as excellent, saying the initiative by the Ministry of Maritime Affairs was appreciable. The members of the Standing Committee appreciated the ministry for bringing $500m Foreign Direct Investment (FDI) for the terminals. Mir Ameer Ali Khan Magsi chaired the 8th meeting of the Standing Committee on Maritime Affairs here which was attended by the Federal Minister for Maritime Affairs Ali Zaidi, Secretary Maritime Affairs Rizwan Ahmed, members of National Assembly and officials of MOMA. The members inquired about the details of the two new LNG terminals and they were briefed about the $10 million being paid for only the land.
Asian shares and U.S. stocks fell on Thursday as investors remained anxious about the spread of a new flu-like virus in China just as millions prepared to travel for the Lunar New Year. Oil futures tumbled to seven-week lows as the contagion was expected to hit airline travel, while the International Energy Agency’s warning of an oil surplus and a larger-than-expected increase in U.S. crude inventories re-kindled fears of excess supply. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.45%. Blue chip Chinese shares .CSI300 slumped 0.91%. Australian shares were down 0.57%, while Japan's Nikkei stock index .N225 slid 0.6%. The Chinese yuan fell toward a two-week low, while safe-havens such as the Japanese yen, gold, and U.S. Treasuries rose before a travel blockade of the Chinese city, Wuhan, at the center of the outbreak starts later on Thursday.
The government has increased development spending to about 55 per cent of its budgetary allocations, significantly higher than last year’s 35pc during the corresponding period. The data released by the Planning Commission shows that it has approved Rs384 billion disbursements for development projects as of January 17 against a budgetary allocation of Rs701bn, accounting for 55pc. Exactly during the same period last year, the Planning Commission had approved release of Rs233bn for development schemes against a budgetary allocation of Rs675bn, accounting for 35pc. As part of the accelerated disbursements, the government has so far released Rs18.6bn for the development schemes of its parliamentarians under the account of Sustainable Development Goals (SDG) against an allocation of Rs24bn for the full year, showing a 78pc spending in just six months.
The government has decided to revive the $2b Karachi Circular Railway project and directed EAD for finalisation of the implementation mechanism for framework agreement under CPEC. Federal Minister for Planning, Development and Special Initiatives Asad Umar chaired a meeting to discuss the Karachi Circular Railway project here on Wednesday. Secretaries of Ministries of Planning, Finance, EAD, Communications and senior officials of Planning Commission participated in the meeting. The meeting discussed various issues hampering the implementation of KCR project as indicated by the government of Sindh. The minister was given a detailed briefing on the project. It was informed that PC-I of KCR project was approved in October 2017, by the ECNEC at the total cost of $1,971 million, however no progress could be made in arranging the financing for the project.
Universal Service Fund Company has given approval of award of contracts to Telenor and PMCL (Jazz) worth Rs680 million for Kurram and Sanghar lots. Federal Secretary Ministry of Information Technology and Telecommunication Shoaib Ahmad Siddiqui chaired 68th Board of Directors meeting of Universal Service Fund Company on Wednesday. According to details, PMCL (Jazz) is being awarded the contract of Kurram Lot while Telenor is being awarded the contract of Sanghar Lot under Next Generation Broadband for Sustainable Development (NG-BSD) Programme. This is part of the inclusive approach of the Government and to strengthen the pillar of connectivity under Digital Pakistan.
National Assembly Standing Committee on Maritime Affairs on Wednesday termed the terms and conditions on which two new LNG terminals are being installed at Port Qasim as excellent, saying the initiative by the Ministry of Maritime Affairs was appreciable. The members of the Standing Committee appreciated the ministry for bringing $500m Foreign Direct Investment (FDI) for the terminals. Mir Ameer Ali Khan Magsi chaired the 8th meeting of the Standing Committee on Maritime Affairs here which was attended by the Federal Minister for Maritime Affairs Ali Zaidi, Secretary Maritime Affairs Rizwan Ahmed, members of National Assembly and officials of MOMA. The members inquired about the details of the two new LNG terminals and they were briefed about the $10 million being paid for only the land.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index is moving back after getting support from a strong horizontal supportive region to retest supportive trend line of its wedge, therefore it's expected that a positive gap opening would be witnessed during current trading session and later on index would try to target 42,950 points and breakout above that region could call for 43,200 points. It's recommended to initiate intraday long positions with strict stop loss and profit target at 43,950 points. Daily momentum indicators are trying to generate bullish crossovers and if index would succeed in closing above 43,000 points then these crossovers would take place. But it's recommended to trade on intraday basis only until index set a clear direction because if it would not succeed in breakout above 43,000 points then a sharp bearish rally would try to expand bearish momentum in coming days.
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