PSX Daily Market Review - 11th April 2019

Trading volume at PSX floor dropped by 19.31 million shares or 12.03% on DoD basis, whereas the benchmark KSE100 index opened at 37,138.79, posted a day high of 37,170.36 and a day low of 36,464.85 points during last trading session while session suspended at 36,579.32 with net change of -550.65 points and net trading volume of 73.30 million shares. Daily trading volume of KSE100 listed companies dropped by 35.55 million shares or 32.66% on DoD basis.
Foreign Investors remained in net selling positions of 4.08 million shares and net value of foreign inflow dropped by 2.07 US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in net buying positions of 0.17 and 1.00 million shares but Foreign Corporate investors remained in net selling positions of 5.25 million shares. While on the other side Local Individuals, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 50.34, 9.12, 2.29 and 3.05 million shares respectively but Local Companies, Banks and NBFCs remained in net buying positions of 2.92, 8.06 and 0.16 million shares respectively.

Growth woes douse rally in Asian shares, dollar slips
Asian stocks stepped back from near eight-month highs on Thursday and the dollar eased as European and U.S. central banks reinforced investor worries about the global economic outlook and trade protectionism. In a fresh escalation of trade tensions, U.S. President Donald Trump has threatened new tariffs on goods from the European Union even as the Sino-U.S. trade dispute remains unresolved. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.3 percent after four straight days of gains took it to the highest since last August. Chinese shares were subdued with the blue-chip CSI300 off 1 percent while Hong Kong’s Hang Seng index stumbled 0.6 percent. Australian shares also lost ground, pressured by political uncertainty after the country’s prime minister called a national election for May 18.
NHA hands over Sahianwala service area to new operator
The National Highway Authority has handed over the control of Sahianwala Service Area located on Fasilabad-Multan Motorway (M-4) to a successful bidder, who won the contract three months ago by offering around 28 times higher monthly rent. The service area was previously rented out at just Rs160,000 per month but the same went at monthly rent amounting to Rs6,500,000 after a transparent bidding process conducted on the instructions of incumbent management. Besides failing to win the contract, the previous leaseholder had declined to hand over the possession of said service area back to NHA by using his influence while the management was also showing reluctance to conduct an operation.
LCCI, PRA organise walk on tax day
LCCI and PRA on Wednesday organised a walk in connection with Tax Day to raise awareness about importance of filing tax returns. Meanwhile, Punjab Revenue Authority organised an event in connection with celebrations of Tax Day on Wednesday. The day was celebrated to promote awareness regarding importance of paying taxes and acknowledge the top taxpayers. The main event of the celebrations was held at a local hotel where Minister for Finance, Makhdoom Hashim Jawan Bakht was the chief guest. Minister for Revenue Malik Muhammad Anwar and Minister for Excise & Taxation Hafiz Mumtaz Ahmed were the guests of honor. People from a cross section of society including international development partners, chamber of commerce & industry, tax bars, ICAP, ACCA and taxpayers of various services semi sectors attended in a large number.
Without reforms, Pakistan’s growth rate to remain at 2.5pc till 2024: IMF
As Finance Minister Asad Umar leads a delegation to Washington to finalise a three-year bailout programme, the International Monetary Fund (IMF) on Tuesday forecast Pakistan’s growth to fall to 2.9 per cent and 2.8pc during the current and next fiscal year unless its programme was accepted. The delegation led by finance minister including State Bank of Pakistan Governor Tariq Bajwa, Finance Secretary Younas Dagha, Economic Affairs Division Secretary Noor Ahmed and senior officials from these institutions would attend the spring meetings (April 9 – 14) of the IMF and the World Bank and finalise a bailout package to stabilise macroeconomic fundamentals on the sidelines.
IMF sees sharp jump in fiscal deficit, debt
The International Monetary Fund (IMF) on Wednesday forecast Pakistan’s fiscal deficit continuously elevated at close to 8pc and deteriorating debt-to-GDP ratio to reach 86pc over the next five years. In its Fiscal Monitor released on the sidelines of spring meetings, also attended by a Pakistani delegation led by Finance Minister Asad Umar, the Fund also bites that performance-based salaries of the Federal Board of Revenue officials significantly contributed to both higher bribes and tax collection. The IMF estimates the deficit increasing further to 7.2pc in FY19 and then peaking at 8.7pc during FY20, before coming down to 8pc of GDP in FY21, followed by 7.8pc and 7.6pc in FY22 and FY23 and then rising again to 7.7pc by FY24.

SNGP, SSGC, ASL and FFL would try to lead the positive momnetum after a dip on intrday basis.

The Benchmark KSE100 index have continued its bearish trend during last trading session and it’s expected that index would open with a negative gap during current trading session but it’s also expected that some fresh volumes would be witnessed during current trading session if index would penetrate its previous low therefore it’s recommended to wait for a dip during current or next trading session and once index would reach 36,000 points region then sharp pull back would be tried between 36,000 till 35,500 points. These both regions fall on strong horizontal supports on weekly chart, while a correction is also due since last 2500 points. It’s recommended to start buying in chunks once index reach 36,000 points with strict stop loss of 35,500 points because downward penetration of 35,500 will call for 34,600 and if index would succeed in getting reversal before that region then a pull back towards 37,000 and 37,500 points would be witnessed initially.