PSX Daily Market Review - 13th June 2019

Trading volume at PSX floor increased by 34.05 million shares or 29.12% on DoD basis, whereas the benchmark KSE100 index opened at 34,617.62, posted a day high of 35,137.56 and a day low of 34,607.71 points during last trading session while session suspended at 34,937.93 with net change of 278.08 points and net trading volume of 113.57 million shares. Daily trading volume of KSE100 listed companies increased by 20.47 million shares or 21.99% on DoD basis.
Foreign Investors remained in net selling positions of 0.73 million shares and net value of Foreign Inflow dropped by 0.24 million US Dollars. Categorically Foreign Individuals and Overseas Pakistani investors remained in net buying positions of 0.05 and 0.33 million shares but Foreign Corporate investors remained in net selling positions of 1.11 million shares. While on the other side Local Individuals and Brokers remained in net buying positions of 15.25 and 5.77 million shares respectively but Local Companies, Banks, NBFCs, Mutual Fund and Insurance Companies remained in net selling positions of 3.46, 3.87, 0.02, 6.42 and 4.08 million shares.

Asian stocks subdued, oil near five-month low on U.S. inventory build
Asian stocks stuttered on Thursday, dogged by the uncertainty over an intractable U.S.-China trade dispute, while oil prices flirted with five-month lows thanks to higher U.S. crude inventories and a bleaker demand outlook. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked down 0.1%, slipping from a one-month high touched earlier this week, while Japan’s Nikkei lost 0.3%. On Wall Street, the S&P 500 lost 0.20% on Wednesday. A bigger mover overnight was oil, which tumbled 4% to their lowest settlements in nearly five months, pressured by another unexpected rise in U.S. crude stockpiles and by a dimming outlook for global oil demand. Brent crude futures barely moved at $60.01 in early trade after a 3.7% slide on Wednesday to $59.97 a barrel, the international benchmark’s lowest close since Jan. 28.
FBR to go after evaders using offshore accounts, properties to avoid taxes
The government has proposed several amendments to the income tax laws to tighten the noose around offshore tax evaders. Under the proposed amendments, tax evasion via offshore accounts will be deemed as a punishable crime and those found guilty will either have to pay hefty fines or face jail time of up to seven years. The amendments are in line with the Financial Action Task Force recommendations and will be made part of the Finance Act 2019 after approval from the parliament. The amendments introduce various changes to the legal framework governing tax evaders, absconders, abettors, officials and individuals involved in malpractices and real estate transactions.
205 new unapproved projects included in PSDP 2019-20 violating rules
In violation of its own established rules, the government has included around 67 percent or 205 new unapproved projects in the federal Public Sector Development Programme 2019-20. According to the PSDP 2019-20, out of total 308 new projects included in the upcoming federal PSDP 205 schemes worth around Rs 100 billion are unapproved. Soon after coming into power the PTI government had downward revised the federal PSDP and removed 350 unapproved projects from the federal PSDP 2018-19 saying that these projects were politically motivated. The government had also announced that in future no unapproved project will be included in the federal PSDP. However now in the next year PSDP around 67 percent projects are unapproved or under process.
Forestry integral feature of sustainable economic development
The Lahore Chamber of Commerce & Industry on Wednesday inked memorandum of understanding (MoU) with Commissioner, Lahore Division and Parks & Horticulture Authority (PHA) for much-needed plantation. LCCI President Almas Hyder, Commissioner Lahore Division Dr Mujtaba Paracha and Chairman PHA Yasir Gilani inked the accord. LCCI Vice President Faheem-ur-Rehman Saigal, Convor LCCI Standing Committee on Environment Engineer Khalid Usman and EC Member Mian Zahid Javed were also present.
ICCI terms budget taxing for business class, common man
The Islamabad Chamber of Commerce & Industry termed the first annual budget presented by PTI government as quite taxing and burdensome for business class and the common man as it has further enhanced many taxes and abolished tax exemptions. Ahmed Hassan Moughal, President, Rafat Farid, Senior Vice President, and Iftikhar Anwar Sethi, Vice President Islamabad Chamber of Commerce & Industry, said that budget 2019-20 has abolished zero-rating facility for five export-oriented industries that would enhance their production cost and make our exports more uncompetitive in international market. They said that Pakistan badly needed to improve exports for revival of its economy, but doing away with zero-rating for export-oriented sector would thwart all efforts to enhance exports.

PSO, DGKC, ISL, SSGC & EPCL would try to lead the positive momentum while UBL and LOTCHEM will remain under pressure.

The Benchmark KSE100 have secured one more day above 34,400 points and have tried to generate a morning shooting star on daily chart but have not succeeded during last trading session. Index is trying to bounce back after completing its 50% correction since last two and getting support from a strong horizontal supportive region. As of now hourly and daily momentum indicators have changed their direction towards bullish side which may lead index towards 35,500 if it would succeed in penetration above 35,023 points on daily basis. As of now it's recommended to add long positions as long as index is maintaining above 34,400 points, because penetration above 35,023 points would call for 35,500 & 36,300 points and if it would succeed in gaining strength above these both regions in coming week then it's expected that index would try to target 37,500 points before june closing. But on flip side index have supportive regions standing at 34,400 & 33,900 points and breakout of 33,900 points would call for a serious downward rally. It's recommended to post trailing stop loss on long positions while trading during current trading session.