PSX Daily Market Review - 10th June 2019

Trading volume at PSX floor dropped by 74.49 million shares or 37.41% on DoD basis, whereas the benchmark KSE100 index opened at 35,890.48, posted a day high of 35,890.48 and a day low of 35,425.32 points during last trading session while session suspended at 35,505.29 with net change of -469.5 points and net trading volume of 92.62 million shares. Daily trading volume of KSE100 listed companies dropped by 83.78 million shares or 47.49% on DoD basis.
Foreign Investors remained in net selling positions of 1.08 million shares and net value of Foreign Inflow dropped by 2.29 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in net buying positions of 0.16 and 1.88 million shares but Foreign Corporate investors remained in net selling position of 3.12 million shares. While on the other side Local individuals, Banks and Insurance Companies remained in net buying positions of 27.51, 1.25 and 3.22 million shares but Local Companies, Mutual Funds and Brokers remained in net selling positions of 14.39, 15.44 and 0.79 million shares respectively.

Global stocks gain as Mexico tariffs averted, yuan falls to 2019 lows
U.S. stock futures and Asian shares rose on Monday after the United States dropped its threat to impose tariffs on Mexico in a deal to combat illegal migration from Central America, and as weak U.S. jobs data raised hopes for U.S. interest rate cuts. The Mexican peso jumped about 2.0% in early Monday trade to 19.2285 on the dollar on news of the deal, while the Chinese yuan slipped to its lowest levels this year on weak Chinese imports data and as talks to end the Sino-U.S. dispute remained deadlocked. S&P500 mini futures rose as much as 0.8% and was last up 0.4%. The 10-year U.S. Treasuries yield jumped back 3.5 basis points to 2.119 percent, after hitting a 21-month low of 2.053 percent on Friday on soft U.S. jobs data. Global investors had feared that opening up another trade conflict, while still battling with China, could tip the United States and other economies into recession.
Budget likely to abolish advance tax on tobacco
Govt eyes 4pc growth rate for next fiscal year
Amid tight fiscal and contractionary monetary policies, the government is targeting slight improvements in savings and investments, coupled with better performance by agriculture and industry to achieve an economic growth rate of four per cent during the next fiscal year, compared to a dismal growth of 3.3pc during the current fiscal year. According to budget documents, the government is setting a target of total investment-to-GDP ratio at 15.8pc for the next fiscal year, slightly higher than the current year’s provisional rate of 15.4pc that is significantly lower than 17.2pc target. Of this, the fixed investment-to-GDP ratio is targeted to increase to 14.2pc from the current year’s missed target of 15.6pc. The fixed investment during the current fiscal year is provisionally anticipated at 13.8pc.
Economic Survey to be launched today
he Pakistan Tahreek-i-Insaf led government is all set to formally launch the pre-budget document, ‘Economic Survey 2018-19’ today to share the key economic indicators and the performance of different sectors of the economy. The pre-budget document is scheduled to be shared with media at a press conference likely to be held at P-Block Auditorium during which an overview of the economic progress made in recent years in Pakistan would be provided, official sources said. The Survey would highlight the main features of the policies undertaken by the present government, which are focused on bringing macro-economic stability and putting the economy on growth trajectory. The survey would cover the development of all the important sectors of economy, including growth and investment, agriculture, manufacturing, mining, fiscal development, money and credit, capital markets, inflation, debt and liabilities.
Businessmen reject proposed hike in taxes
United Group of ICCI Chairman Habibullah Zahid has said that the business community had rejected the proposed hike of trillion of rupees in the taxes, terming it extortion which will hurt the masses. “We reject the move as it will make life difficult for the masses and the business community reeling under inflation and uncertainty.” Habibullah Zahid said that the government has failed to achieve anything and it has targeted masses to cover its inefficiencies. He said, “Army has voluntarily reduced its budget which has gone down very well with the masses and the businessmen and now we demand that politicians and bureaucracy should also sacrifice some of the luxuries in the national interest.” He noted that Islamabad Chamber has been hijacked by a ‘qabza group’ since long which continues to bargain on the interests of the business community. This group always ensures the election of incompetent to the top slots so that they remain dominant and their activities remain unchecked, he added. Habibullah Zahid said that one of the former presidents of ICCI has made shops worth million in the Super Market while other has doubled the size of his hotel in Blue Area by grabbing the state’s land.

The Benchmark KSE100 index have formatted an evening shooting star on daily chart and right now it's heading towards a strong horizontal supportive region which falls at 35,250 points. As of now it's expected that a cheat pattern would be created on daily chart and index would try to recover sharply after a slight dip because hourly momentum indicators are ready for a bullish pull back. It's recommended to initiate buying on dip with trailing stop loss for day trading. On short term basis index have a strong supportive region ahead at 34,800 points and it's expected that it would remain bullish until it close below that region. Impact of previous weekly bullish engulfing is still intact and it's expected that index would try to continue it bullish momentum during this week and would try to target 36,086 and 36,500 points initially.