PSX Daily Market Review - 12th April 2019

Trading volume at PSX floor increased by 2.62 million shares or 1.86% on DoD basis, whereas the benchmark KSE100 index opened at 36,555.20, posted a day high of 36,910.03 and a day low of 36,499.34 points during last trading session while session suspended at 36,787.64 with net change of 208.32 points and net trading volume of 101.70 million shares. Daily trading volume of KSE100 listed companies increased by 28.40 million shares or 38.74% on DoD basis.
Foreign Investors remained in net selling positions of 6.55 million shares and net value of foreign inflow dropped by 2.28 US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in net buying positions of 0.71 and 0.56 million shares but Foreign Corporate investors remained in net selling positions of 7.82 million shares. While on the other side Local Individuals, Local Companies, Mutual Fund and Brokers remained in net buying positions of 5.41, 3.94, 5.62 and 1.85 million shares respectively but Banks, NBFCs and Insurance Companies remained in net selling positions of 0.66, 4.48 and 6.20 million shares respectively.

Asian shares tread water amid mixed growth signals
Asian shares were flat and U.S. Treasury yields pulled back on Friday as investor caution prevailed ahead of the release of first-quarter corporate earnings, although stronger U.S. economic data helped offset some concerns about global growth. Early in the trading day, MSCI’s broadest index of Asia-Pacific shares outside Japan was barely higher, up 0.03 percent. Higher Chinese iron ore prices helped Australian shares outpace regional markets, pushing Australia’s S&P/ASX 200 index up 0.7 percent. Japan’s Nikkei stock index gained 0.1 percent. The weak gains in Asian markets followed a choppy session on Wall Street that left major indexes treading water, hemmed in by anxiety ahead of corporate earnings and worries about a global economic slowdown, which capped gains from upbeat U.S. economic data.
Finance minister holds talks with IMF, WB officials
A Pakistani delegation led by Finance Minister Asad Umar participated in IMF and World Bank Spring meetings in Washington and discussed the economic situation of the country, embassy officials said on Thursday. On the sidelines of the meetings, Finance Minister Asad Umar also met with the new World Bank President David Malpass and apprised him of the macroeconomic situation in the country and discussed continuation of Pakistan’s ongoing engagement with the Bank. Malpass appreciated the reform process in the country and assured continued World Bank support. Asad Umar also met with the First Deputy Managing Director of IMF David Lipton and talked about the ongoing negotiations with the IMF. The finance minister had a business roundtable with members of the US Pakistan Business Council.
Irsa likely to declare zero water shortage for early Kharif season
Indus River System Authority is likely to revise downwards the water shortage estimate in early Kharif to zero and provide Sindh its share according to Para-2 of the water accord 1991. The rivers received more water than the forecast flows during the first ten days of Kharif season and therefore IRSA is considering revising downwards the water shortage estimate, for early Kharif season, from 14 percent to zero, official source told The Nation here Thursday. On 2nd April, IRSA advisory committee had anticipated that during early Kharif (April 1st to June 10), the water shortage forecast is 14 percent which will decrease to 6 percent during late Kharif (June-September 30). However, the water inflow in river Indus increased by 13 percent than the anticipated during the first ten days of the Kharif season.
CCP imposes Rs18m penalty on electric cable manufacturers
The Competition Commission of Pakistan (CCP) has passed an order imposing a total penalty of Rs 18 million on 18 electric cable manufacturers for violating Section 10 of the Competition Act, 2010 by hiding the presence of cash/cash coupons inside the packaging of electric wire cable bundles from consumers. CCP conducted an enquiry on receiving information that many electric wire manufacturing companies were inserting cash/cash coupons inside the bundle packs of electric wire but they were not disclosing this on the packaging or other promotional material. The practice only benefits the electricians who generally open the packs and deceives the end consumers who ultimately pay for the value of the coupons but are unaware of it.
IMF, World Bank urge caution with China loans
The rising influence of lending by China to developing nations is increasingly under the spotlight amid concerns the growing debt burden and onerous conditions could sow the seeds of a crisis. The global development lenders, the International Monetary Fund and World Bank, are calling for more transparency about loan amounts and terms, and cautioning governments against relying too much on debt. At the Spring meetings of the institutions on Thursday, newly-installed World Bank President David Malpass warned that “17 African countries are already at high risk of debt distress, and that number is just growing as the new contracts come in and aren't sufficiently transparent.”

PSO, ATRL, ISL and FFL would try to lead the positive momentum after a dip on intraday basis, while SNGP, SSGC and ENGO would try to remain under pressure.

The Benchmark KSE100 Index have tried to bounce back after posting a double bottom at crossover of a trend line with a horizontal supportive region and chances of a occurrence of a morning star have become evident on daily chart therefore index seems to continue its current bullish pull back above 37,000 during current trading session after a dip and this pull back may end with an intraday spike. As of now index have supportive regions at 36,000 and 35,800 points while resistant regions are standing at 36,960 & 37,370 points. It’s recommended to stay on buying side on dips for day trading during current trading session with strict stop loss of 36,000 or 35,800 points as per trading risk appetite.