PSX Daily Market Review - 10th April 2019

Trading volume at PSX floor increased by 53.51 million shares or 50.02% on DoD basis, whereas the benchmark KSE100 index opened at 36,906.30, posted a day high of 37,270.58 and a day low of 36,593.20 points during last trading session while session suspended at 37,129.97 with net change of 208.06 points and net trading volume of 108.85million shares. Daily trading volume of KSE100 listed companies increased by 35.52 million shares or 48.43% on DoD basis.
Foreign Investors remained in net selling positions of 2.46 million shares but net value of foreign inflow increased by 0.39 US Dollars. Categorically, Foreign Individuals and Foreign Corporate remained in net selling positions of 0.19 and 3.22 million shares but Overseas Pakistanis investors remained in net buying positions of 0.76 million shares. While on the other side Local Individuals and Brokers remained in net buying positions of 16.96 and 3.96 million shares respectively but Local Companies, Banks, NBFCs, Mutual Fund and Insurance Companies remained in net selling positions of 3.01, 0.74, 0.21, 11.79 and 2.86 million shares respectively.

Asian stocks slip from eight-month high as new trade war front opens
Asian stocks slip from eight-month high as new trade war front opens MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.3 percent, a day after it hit its highest since Aug. 1. The Shanghai Composite Index fell 0.55 percent and Japan’s Nikkei lost 0.7 percent. On Wall Street, the S&P 500 gave up 0.61 percent and the Nasdaq Composite declined 0.56 percent on Tuesday. MSCI’s broadest gauge of the world’s stock markets was down slightly from Tuesday’s six-month peak but it was still up roughly 19 percent from a near two-year trough marked in December.
PM to sign FTA 2nd phase with China in last week of April: Envoy
Chinese Ambassador to Pakistan Yao Jing said Tuesday that Prime Minister Imran Khan would visit China in last week of April to sign the second phase of Free Trade Agreement (FTA) which would help Pakistani products to get free access to 95 percent Chinese markets. Addressing the businessmen at Faisalabad Chamber of Commerce and Industry (FCCI) Complex, he said that in the second phase of FTA, both countries would extend their cooperation in agriculture, manpower, health and education sectors as well as elimination of poverty. In this connection, a roadmap would be discussed to enhance cooperation in social sector, besides evolving framework for assistance in agro-industrial sector, he disclosed.
Neelum Jhelum project crosses 1000MW generation mark
Neelum Jhelum Hydropower Project on Tuesday achieved yet another landmark, as electricity generation from the project crossed 1000 megawatts (MW) mark. Neelum Jhelum Hydropower Project generated up to 1040 MW beyond its installed generation capacity of 969 MW, which reflected the efficiency standards of the power plant, said a statement. Meanwhile, WAPDA Chairman Lt Gen Muzammil Hussain (r) congratulated the Neelum Jhelum Hydropower Project authorities, the engineers in particular, on this professional high mark of efficiency. It is worth mentioning that Neelum Jhelum Hydropower Project had attained its maximum installed capacity of 969 MW earlier during this season on March 29.
Govt mulls giving SBP greater operation, institutional independence
The government is considering giving the SBP greater operation and institutional independence in order to bring greater discipline in money market and exchange rate regimes. In this context, the State Bank Act would be amended to further strengthen the autonomy of SBP and clarify its objectives and functions, the government stated in recently launched medium term economic framework named as ‘Roadmap for Stability Growth and Productive Employment’. The government, in consultation with SBP and other stakeholders, will finalize proposals to facilitate implementation of the new exchange. The existing exchange rate arrangements and possible limits of government borrowing from SBP will also be clarified in line with prioritizing price stability as an objective of monetary policy.
Govt to recover full cost of power, gas supplies
Disclosing that Rs1.4 trillion public money stood parked outside the treasury single account, the government on Tuesday announced full cost recovery of power and gas supply through automatic price adjustment, bring provinces into fiscal discipline and launch a series of international bonds over the next couple of years. This is part of the Medium Term Economic Framework (MTEF) released by the government on Tuesday. The 45-page document generally sets the direction of the government’s economic plans under the International Monetary Fund supported stabilisation programme. The document highlighted the weakness of fiscal management saying “many public sector agencies park unspent monies outside the Treasury Single Account (TSA). By end 2018 there was an estimated Rs1.4tr in these accounts”, showing a clear case of lack of oversight of public finances.

DGKC, DCL, ASL and ISL would try to lead the positive momnetum after a dip on intrday basis while PSO, ENGRO and EFOODS would remain laggard during current trading session.

Daily & Weekly momentum indicators of the Benchmark KSE100 are still in bearish mode and pull back of previous session still have not succeeded in setting up an upward trend, while trend on hourly chart may shift towards slightly bearish side on intraday which may lead index for an intraday dip and it’s expected that index would try to recover after an intraday dip therefore it’s recommended to initiate buying on dip and add positions to previous holdings in chunks. As of now index would face resistances at 37,500 & 37,860 points while on flip side index would try to find supports at 36,860 and its previous low.