PSX Daily Market Review - 13th Feb 2019

Trading volume at PSX floor increased by 30.66 million shares or 22.81% on DoD basis, whereas the benchmark KSE100 index opened at 40,326.19, posted a day high of 40,637.26 and a day low of 40,269.00 points during last trading session while session suspended at 40,596.28 with net change of 269.75 points and net trading volume of 91.16 million shares. Daily trading volume of KSE100 listed companies increased by 3.59 million shares or 4.10% on DoD basis.
Foreign Investors remained in net buying positions of 1.37 million shares and net value of Foreign Inflow increased by 3.56 million US Dollars. Categorically, Foreign Individuals and Foreign Corporate remained in net buying positions of 0.01 and 1.42 million shares but Overseas Pakistani investors remained in net selling positions of 0.07 million shares. While on the other side Local Individuals, Banks and Mutual Fund remained in net buying positions of 19.34, 0.23 and 0.51 million shares respectively but Local Companies, NBFCs, Brokers and Insurance Companies remained in net selling positions of 15.41, 2.90, 1.99 and 0.40 million shares.

Asian stocks touch four-month peak on U.S.-China trade deal hopes
Asian stocks edged up to a more than four-month high on Wednesday, lifted by optimism that the United States and China might be able to hammer out a deal to resolve their nearly year-long trade dispute. MSCI’s broadest index of Asia-Pacific shares outside Japan rose as much as 0.5 percent to hit its highest level since early October. Japan’s Nikkei average climbed 1.3 percent to mark an eight-week high, while South Korea’s KOSPI gained 0.5 percent.
Govt asked to rationalise taxes on real estate sector
President Islamabad Chamber of Commerce & Industry (ICCI) Ahmed Hassan Moughal has said that the real estate sector plays vital role in the economic development of a country as growth of over 70 allied industries is linked with this sector, but heavy taxes on real estate sector in Pakistan have badly affected the business activities of realtors and government should rationalize taxes on it that would help in early economic revival of the country.
ECC okays additional guarantee of Rs5.6b for PIA
The Economic Coordination Committee (ECC) of the Cabinet has approved additional guarantee of Rs5.6 billion for Pakistan International Airlines Company Limited (PIACL) for maintenance of engines and acquisition of related spares to operationalise grounded aircraft. The ECC meeting, which was chaired by Finance Minister Asad Umar, has also approved measures for revival of cotton crop in the country. The meeting decided that due focus will be laid on the area of research and development, and that collaboration will be made with China to enhance cotton yield.
Asad chairs meeting of Pak-Turkey economic framework body
Finance Minister Asad Umar here on Tuesday chaired meeting of the Committee on Pak-Turkey Strategic Economic Framework. The meeting reviewed the progress on formation of the proposed framework. Minister for Energy, Advisor to Prime Minister on Commerce & Textile, Minister for IPC and Minister for Privatization attended the meeting.
Services trade deficit shrinks 29.1pc in first half
Services trade deficit shrank by 29.11 percent during the first half of the current fiscal year compared to the corresponding period of last year. The services trade deficit during July-December (2018-19) was recorded at $1.945 billion against the deficit of $2.744 billion during July-December (2017-18), showing decline of 29.11 percent, official data revealed. The services imports into the country during the period under review decreased by 15.97 percent to $4.545 billion from $5.409 billion last year, according to latest data of PBS.

The Benchmark KSE100 Index is expected to open with a positive gap above 40,650 points during current trading session and if it would succeed in opening above this level then momentum would remain positive on intraday basis. As of now index support regions at 40,000 and 39,860 points while resistant regions are standing at 40,800 and 41,200 points while closing above 40,860 points would strengthen positive momentum but it’s not recommended to initiate short or mid-term positions at current level because index would remain volatile till this weekly closing and it would be preferred to trade on intraday basis until index close above 41,500 or below 39,860 points. Cement sector would try to lead positive momentum because major shares of cement sector are standing at their key resistant regions and if these would succeed in penetration of their respective regions then a price increment of 10-15% could be witnessed in coming days.