PSX Daily Market Review - 10th May 2019

Trading volume at PSX floor dropped by 35.14 million shares or 31.03% on DoD basis, whereas the benchmark KSE100 index opened at 35,025.23, posted a day high of 35,300.26 and a day low of 34,828.94 points during last trading session while session suspended at 34,887.64 with net change of -147.39 points and net trading volume of 60.13 million shares. Daily trading volume of KSE100 listed companies dropped by 26.64 million shares or 30.70 on DoD basis.
Foreign Investors remained in net selling positions of 8.90 million shares and net value of Foreign Inflow dropped by 3.62 million US Dollars. Categorically, Foreign Individuals and Foreign Corporate remained in net selling positions of 0.01 and 9.80 million shares but Overseas Pakistanis investors remained in net buying positions of 0.91 million shares. While on the other side Local Individuals, Local Companies, NBFCs and Brokers remained in net buying positions of 8.56, 1.71, 0.09 and 3.28 million shares but Banks, Mutual Fund and Insurance Companies remained in net selling positions of 2.29, 2.11 and 0.95 million shares respectively.

Asian shares near two-month lows ahead of looming U.S. tariff hike
Asian shares inched up from two-month lows on Friday just hours ahead of the Trump administration’s plan to raise tariffs on Chinese imports as investors looked to whether negotiators from the two countries can clinch a deal to avert the hike. U.S. President Donald Trump said on Thursday he had received a “beautiful letter” from Chinese President Xi Jinping, stoking hopes that Washington may suspend its plan to raise tariffs on $200 billion worth of Chinese goods to 25 percent from 10 percent. That provided some support for stocks in early Asian trade though sentiment remains cautious. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.2 percent while Japan’s Nikkei rose 0.4 percent. E-mini futures for U.S. S&P500 rose 0.4 percent in early Asian trade. Yet with less than four hours left before the announced start of new rates at 12:01 a.m. (0401) GMT on Friday, right in the middle of two days of meetings with a Chinese delegation, some see the risk of a fresh escalation in the trade war.
Experts review CPEC trade activities
Experts from Pakistan and China on Thursday reviewed problems related to the volume of traffic and trade activities on the China-Pakistan Economic Corridor (CPEC). The two sides held a detailed discussion on the issues during signing of minutes of the two-day expert groups meeting on international road transport at the communications ministry. Communications ministry’s senior joint secretary Altaf Asghar and leader of the Chinese delegation and party secretary of the transportation department Xinjiang Lin Ping signed the minutes. The two-day talks bet­ween working level expert groups from Pakistan and China were aimed at promoting bilateral trade through the CPEC.
Govt appoints Shabbar Zaidi as FBR chairman on honorary basis for 2 years
The federal government on Thursday appointed Shabbar Zaidi as chairman of Federal Board of Revenue on honorary basis for a period of two years. “The federal government has been pleased to appointment Syed Muhammad Shabbar Zaidi as xhairman Federal Board of Revenue, Islamabad on honorary basis/pro bono basis for a period of two years, with immediate effect and until further order,” said a notification issued by the Establishment Division. As a honorary chairman, he will have full authority and powers but he will work without any salary or privileges.
Better tax policies needed: LCCi
Lahore Chamber of Commerce and Industry has stressed the need for adopting better tax policies for encouraging local and foreign investment. In a statement issued on Thursday, LCCI President Almas Hyder urged the government not to accept strict conditions of IMF. He suggested flat tax instead of sticking to traditional tax system. Almas Hyder said flat taxation system would help faster economic growth and reduce the complexities.
MPs worried over Rs3653b borrowing
A parliamentary committee on Thursday has expressed apprehensions on the increase in public debt during the first eight months of the incumbent government’s tenure. A senior official of Finance Division informed a parliamentary panel that incumbent government had borrowed massive Rs3653 billion during the first eight months of the current fiscal year. Meanwhile, the devaluation of currency has also added Rs1421 billion to the public debt in last few months.

The Benchmark KSE100 Index have succeeded in penetration below its major supportive trend line during last trading session. But a positive element also have occurred that index have succeeded in a sharp pull back above 35,000 points before day end which have strengthen a hope among bulls. As of now it's recommended to stay cautious while trading during current trading session because supportive regions are far away at the momentum and falls at 34,600 and 34,300 points respectively while on the flip side index have resistant regions ahead at 36,200 and 36,500 points. It's expected that index would start the day with a positive momentum and after a volatile session it would also close on positive note. It's recommended to start buying on dip during current trading session.