PSX Daily Market Review - 12th Sep 2019

Trading volume at PSX floor increased by 51.46 million shares or 106.74% on DoD basis, whereas the benchmark KSE100 index opened at 30,531.05, posted a day high of 31,019.81 and a day low of 30,467.20 points during last trading session while session suspended at 30,954.83 points with net change of 487.63 points and net trading volume of 78.81 million shares. Daily trading volume of KSE100 listed companies increased by 40.46 million shares or 105.52% on DoD basis.
Foreign Investors remained in net buying positions of 1.14 million shares but net value of Foreign Increased by 1.32 million US Dollars. Categorically, Foreign Individuals, Corporate & Overseas Pakistanis remained in net buying positions of 0.02, 0.87 and 0.25 million shares. While on the other side Local Individuals, Banks, NBFCs, Mutual Fund and Brokers remained in net selling positions of 1.19, 2.74, 0.15 and 4.67 million shares but Local Companies and Insurance Companies remained in net buying positions of 0.72 and 2.23 million shares respectively.

Asian stocks hit six-week high on trade war hopes ahead of ECB
Asian stocks hit a six-week high on Thursday on hopes for a thaw in U.S.-China trade frictions and expectations that the European Central Bank would kick off another wave of monetary easing by global central banks. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.4% and Japan’s Nikkei stock index rose 0.88%. Australian shares were up 0.56%. Chinese stocks rose and the yuan hit a three-week high after U.S. President Donald Trump agreed to delay an additional increase in tariffs on Chinese goods by two weeks at the request of China’s Vice Premier Liu He “as a gesture of good will.” U.S. stock futures jumped 0.42% and safe-havens such as the yen, U.S. Treasuries, and gold weakened in a sign of improving appetite for risk.
Pakistan’s extreme poverty declines to 3.9pc: ADB
The extreme poverty (or below $1.9 per day poverty line) in Pakistan has gone down from 28.6 percent of total population in 2001 to 3.9 percent in 2015, Asian Development Bank said in a report. The ADB released 50th edition of its annual statistical report, Key Indicators for Asia and the Pacific 2019, and an online database, Key Indicators Database on Tuesday. The report added that on the basis of National Poverty Line, Pakistan’s poverty ratio declined to 24.3 percent in 2015 compared to 64.3 percent in 2001. The Urban poverty decreased from 50 percent in 2001 to 12.5 percent in 2015 while the rural poverty gone down from 70 percent in 2001 to 30 percent in 2015. The overall numbers show that the number of people living in extreme poverty in Asia and the Pacific Asia has declined from 1.1 billion in 2002 to 264 million in 2015.
SEZ enterprises seek an end to ‘backdoor’ taxes, equal treatment with Chinese investors
A meeting of commerce adviser to Prime Minister and the chairman Federal Board of Revenue (FBR) with investors of two special economic zone (SEZs) on Wednesday ended in disappointment for the businessmen. At issue is an FBR demand to levy 1.5 per cent turnover tax on sales revenue of enterprises operating in the zones, whereas the owners of these enterprises say that they were promised their enterprises would be tax exempt when they made the decision to invest in these zones. Around 40 industrial units with a total investment of Rs70 billion from these zones sent the FBR two SOS letters in early August to dispute the demand from the FBR to collect 1.5pc turnover tax from them. The three zones are the Bin Qasim Industrial Park (BQIP), the Korangi Creek Industrial Park (KCIP) and Khairpur Special Economic Zone (KSEZ). All three were registered as SEZs in 2015 under the SEZ Act 2012.
APG to file report on Pakistan’s steps against terror financing
Based on Pakis­tan’s ‘effective’ progress report, the Asia-Pacific Joint Group (APG) will submit next month its assessment of Islamabad’s progress on strengthening of its systems against money laundering and terror financing. “The Pakistan delegation effectively presented Pakistan’s progress on each of the Financial Action Task Force (FATF) Action Plan items and provided additional information/clarification to the AP-Joint Group,” said a brief statement issued by the Ministry of Finance after two-day face-to-face meetings with the APG in Bangkok. It said the APG, as per the FATF’s procedures, would present its report in the FATF Plenary and Working Group meetings scheduled for October 13-18 in Paris, France.
Rs15.6bn refunded to exporters
The Federal Board of Revenue (FBR) has cleared Rs15.6 billion sales tax refunds through the newly installed Fully Automated Sales Tax e-Refund (FASTER) system to exporters. Adviser to Prime Minister on Finance Dr Hafeez Shaikh on Wednesday tweeted that the amount is released against 8,415 Refund Payment Orders to enhance the liquidity of businesses and economic activity. He said this was on top of Rs5.4bn refunds cleared as bonds and adjustments. Under the new system, the FBR encourages the exporters to submit their claims in form Annex-H at the earliest so that their claims can be processed and paid. On Sept 2 the FBR also announced the release of sales tax refunds. However, it did not mention the amount released in its official statement.

The Benchmark KSE100 index has penetrated above resistant trend line of a triangle on daily chart and right now it's moving upward again after retesting said trend line therefore it's expected that index would try to take a spike towards 31,200 points on intraday basis if it would succeed in penetration above its initial resistant region of 31,200 points. while on flipside if it would not succeed in penetration above 31,200 points on hourly basis then a dip could be witnessed which may lead index towards 30,500 & 30,200 points. It's recommended to stay on long side and start adding fresh positions if index would succeed in penetration above 31,200 points. Daily momentum indicators are in positive mode while hourly stochastic and MAORSI both have generated bullish crossovers on same time therefore these both would try to lead index in positive zone during current trading session.

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