PSX Daily Market Review - 11th March 2019

Trading volume at PSX floor dropped by 9.17 million shares or 11.03% on DoD basis, whereas the benchmark KSE100 index opened at 39,313.75, posted a day high of 39,323.43 and a day low of 38,866.69 points during last trading session while session suspended at 38,950.23 with net change of -343.87 points and net trading volume of 46.12 million shares. Daily trading volume of KSE100 listed companies dropped by 0.24 million shares or 0.51% on DoD basis.
Foreign Investors remained in net buying positions of 4.2 million shares and net value of Foreign Inflow increased by 0.01 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani Investors remained in net buying positions of 1.72 and 2.47 million shares respectively. While on the other side Local Individuals, Companies, Mutual Funds and Insurance Companies remained in ne selling positions of 2.65, 4.73, 0.74 and 0.16 million shares respectively but Local Banks and Brokers remained in net buying positions of 1.13 and 3.06 million shares.

Asian shares struggle after U.S. payrolls shock
Asian shares struggled for traction on Monday after U.S. employment data raised doubts about the strength of the global economy, while investor jitters ahead of crucial Brexit votes in the UK parliament this week weighed on the pound. MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed from Friday’s three-week low, with broad weakness offset by small gains in Chinese shares. China’s blue-chip CSI300 index gained 0.5 percent after Friday’s 4.0 percent fall, which was triggered after CITIC Securities issued a rare “sell” rating on a major insurer and by a clampdown on gray-market, margin financing.
Red tape blamed for delay in release of $2.3bn by World Bank
More than $2.3 billion disbursement by the World Bank committed for the current fiscal year has been held up due to bureaucratic hurdles as the government banks on short-term loans from friendly countries to meet its foreign exchange needs. A senior government official told Dawn that 27 development projects under the federal and provincial governments were not getting the planned funding by the World Bank during the current year. “The delays in current year’s disbursements could also affect the project pipeline for the fiscal year 2019-20,” he said.
Cement export up 35.08pc
The export of cement from the country increased by 35.08 percent during first seven months (Jul-Jan) of current fiscal year as compared to same period of last year. During the period under review, US $ 184.35 million worth of cement was exported as against the export worth US $ 136.47 million recorded during same period of previous year, according to a latest data of PBS. On yearly and monthly basis, the cement export in January 2019 also went up by 52.88 percent and 5.6 percent when compared with the exports in January 2018, and December 2018 respectively. According to the data, the export in January 2019 rose to US $ 27.34 million against the export valuing US $ 17.884 million recorded during January 2018 and US $ 25.37 million in December 2018.
Power sector entities owe Rs132b to SNGPL, SSGC
The outstanding dues of Sui Northern Gas Pipeline Liminterd (SNGPL) and the Sui Southern Gas Company (SSGC) against power sector entities have surpassed Rs132 billion. Out of the total outstanding dues, Rs 53.71 billion is principal amount while Rs 78.62 billion is Interest. The receivables of Pakistan’s two state-owned gas companies against Independent Power Plants (IPPs), Wapda and K-Electric have surpassed 132.323 billion, said the official documents available with The Nation. According the documents the total receivables of SNGPL as of as of February 1, 2019 were Rs 35.700 which includes the principal amount of Rs 20.967 billion and the interest of Rs 14.733 billion. Similarly the total receivable of SSGC is Rs 96.623 billion which includes RS 32.740 billion principal amount and the remaining Rs 63.883 billion was interest. Ironically the interest of SSGC against K-Electric and Wapda is almost double than the principal amount. Both the SNGPL and SSGC have already informed the government that the outstanding dues of hundreds of billions of rupees was weakening their financial health and making their operations difficult.
Govt urged not to impose more taxes on traders
Mardan Chamber of Commerce and Industry (MCCI) President Zahir Shah on Sunday demanded the government should not impose more taxes on the taxpayers instead include more people in the tax network. Talking to The Nation, he also demanded that the government conduct audit once in five years of the traders. Zahir Shah who is also president of Markaz-e-Tajiran said that the traders are fed up with the audits of several times in a year. He added that the audit should be conduct once in five years. He added that instead of including more people in the tax net the government is imposing more taxes on taxpayers. He added that several types of taxes were imposed on traders. He added that due to this reason people are not giving the tax and don’t join the tax network.

The Benchmark KSE100 Index could not succeed in closing above 39,350 points during last trading session and week closed below 39,000 points. In response to massive pressure which was generated below 39,053 points index still stood strong against bears and week closed above initial supportive region of 38,770 points. As of now it’s expected that index would find supports at 38,770 and 38,500 points against current bearish momentum and breakout of these both regions in bearish direction will call for a serious sharp fall in index. While on flip side index have resistant regions ahead at 39,350 and 39,500 points and these both regions would try to resist against any bullish rally. Daily and Weekly momentum indicators are still bearish but Stochastic and MAORSI on hourly chart are trying to generate a bullish crossover and in case these both would succeed in doing so on same time then an intraday pullback would be witnessed. It’s recommended to stay cautious and trade with trailing stop loss on both side until index give a clear breakout of either 39,500 or 38,500 points on daily basis.