PSX Daily Market Review - 01st Aug 2019

Trading volume at PSX floor increased by 18.93 million shares or 36.92% on DoD basis, whereas the benchmark KSE100 index opened at 31,668.41, posted a day high of 31,968.78 and a day low of 31,545.26 points during last trading session while session suspended at 31,938.48 points with net change of 280.36 points and net trading volume of 53.80 million shares. Daily trading volume of KSE100 listed companies increased by 12.85 million shares or 31.38% on DoD basis.
Foreign Investors remained in net long positions of 0.20 million shares and net value of Foreign Inflow increased by 1.64 million US Dollars. Categorically, Foreign Individuals and Corporate remained in net selling positions of .013 and 1.87 million shares but Overseas Pakistani investors remained in net long positions of 2.19 million shares. While on the other side Local Individuals, Companies, Banks and Brokers remained in net long positions of 4.03, 0.07, 0.28 and 1.37 million shares but NBFCs, Mutual Funds and Insurance Companies remained in net selling positions of 0.18, 5.10 and 0.05 million shares respectively.

Asian shares fall, dollar firms as Fed dampens bets on more rate cuts
Asian shares fell to six-week lows on Thursday while the dollar jumped to two-year highs as the U.S. Federal Reserve poured cold water on market expectations of a lengthy easing cycle following a 25 basis-point rate cut. MSCI’s broadest index of Asia-Pacific shares outside Japan faltered 0.4%, extending losses for a fifth day to the lowest since mid-June. Japan’s Nikkei reversed early losses and were a shade higher, while Australian shares declined 0.1%. Chinese shares opened in the red with the blue-chip index down 0.3%. E-minis for the S&P500 clawed back early losses and were marginally higher, after a sharp drop on Wall Street. Global share markets recoiled overnight after U.S. Federal Reserve Chair Jerome Powell said Wednesday’s easing was “not the beginning of a long series of rate cuts”.
Govt to undertake re-inspection of KBD project
Federal Minister for Water Resources Faisal Vawda has said that Kalabagh Dam project was previously declared dead but now he will undertake re-inspection of the project and will not let it to be buried. “Previously Kalabagh was declared dead in ICU, now I am the new doctor in charge and will order re-inspection of the project and will not allow it to be buried,” Federal Minister for Water Resources Faisal Vawda said while addressing a press conference here.” I will re-inspect and decide about it,” he added. The minister said that the country was in dire need of new water reservoirs and these should have been constructed earlier. However, he said that it is unfortunate that an attempt was made to make several dams project including Kalabagh controversial.
IFC to invest $2.5m to support tech startups in Pakistan
The International Finance Corporation (IFC), a member of the World Bank Group, will invest $2.5 million in Sarmayacar, one of the first early-stage venture capital funds supporting tech-driven startups in Pakistan, to help boost entrepreneurship and spur economic growth. Of the total amount, $2 million is equity commitments from Startup Catalyst, IFC’s global programme that backs accelerators and seed funds in emerging markets, said IFC press statement, adding that through this initiative, the corporation supports startups that provide innovative solutions to development problems and create quality jobs. The remaining $500,000 is from the Women Entrepreneurship Finance Initiative (We-Fi), a partnership among governments, multilateral development banks and other public and private sector stakeholders, hosted by the World Bank Group.
Government increases price of indigenous LPG by 1.44 percent
The government on Wednesday increased the price of indigenous Liquefied Petroleum Gas (LPG) by 1.44 per cent or Rs19.11 per cylinder for the month of August. According a notification issued by the Oil and Gas Regulatory Authority (OGRA) after the increase, the new price of 11.8kg domestic cylinder would go up to Rs1,350.03 from Rs1,330.92 in July 2019. The rate of commercial gas has been increased by Rs2 per kg which will increase the cylinder price by Rs90. In July, the government had reduced LPG price by 4.89 per cent or Rs68.47 per cylinder over the previous month. According to OGRA, LPG prices have been increased by Rs1.62 per kg to Rs114.41 from Rs112.79 in last month.
Govt increases petrol price by Rs5.15 per litre for August
The federal government on Wednesday increased the prices of all petroleum products for the month of August amid a slight reduction in the international crude price, sources told DawnNewsTV. The sources said that the government approved all the recommendations of the Oil and Gas Regulatory Authority (Ogra) for the current month. In the latest development, the government increased the price of petrol (motor spirit) by Rs5.15 per litre and Rs5.65 for High Speed Diesel (HSD). Similarly, the price of kerosene was increased by Rs5.38 and Rs8.9 for Light Diesel Oil (LDO). Earlier on Tuesday, the regulatory authority had moved a summary to the government containing calculations on petroleum prices on the basis of higher general sales tax and petroleum levy.

The Benchmark KSE100 index have penetrated below its major supportive region of 31,700 points which fall on 100% expansion of its previous weekly correction along with a horizontal supportive region. As of now index have a last hope to sustain against current bearish pressure which fall on 31,200 points and it's expected that index would try to start a short term pull back towards 32,500 or 32,760 points before penetration this region and if index would succeed in starting a pull back then current penetration of 31,700 points would be called a false penetration or cheat pattern and index would try to hit 34,000 points, but for this scenario index needs fresh volume which would change the momentum. Currently momentum on daily and weekly time frames is strongly bearish and it seems that if fresh volumes could not pop up then index could target 30,000 and 29,700 points in coming days therefore it's recommended to start trading very cautiously with strict stop loss.