PSX Daily Market Review - 13th May 2019

Trading volume at PSX floor dropped by 38.81 million shares or 49.70% on DoD basis, whereas the benchmark KSE100 index opened at 34,856.43, posted a day high of 34,887.64 and a day low of 34,646.97 points during last trading session while session suspended at 34,716.53 with net change of -171.11 points and net trading volume of 30.12 million shares. Daily trading volume of KSE100 listed companies dropped by 30.01 million shares or 49.91 on DoD basis.
Foreign Investors remained in net buying positions of 0.22 million shares and net value of Foreign Inflow increased by 0.89 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in net buying positions of 0.58 and 0.28 million shares but Foreign Corporate investors remained in net selling positions of 0.64 million shares. While on the other side Local Individuals, Local Companies, Banks and NBFCs remained in net buying positions of 2.82, 0.56, 1.53and 0.02 million shares but Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 0.56, 2.83 and 2.98 million shares respectively.

Asian stocks, yuan fall as U.S.-China seen deadlocked in trade talks
U.S. stock futures fell and Asian shares slipped on Monday on growing uncertainty over whether the United States and China will be able to reach a deal to end their escalating trade war. The United States and China appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any “bitter fruit” that harmed its interests. E-Mini futures for the S&P 500 shed 1.0%. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.4%, nearing its two-month low marked on Thursday. Chinese shares tumbled, with the benchmark Shanghai Composite and the blue-chip CSI 300 shedding 1.4% and 1.6%, respectively, while Hong Kong’s financial markets were closed for a holiday.
Pakistan reaches agreement with IMF, to receive $6 billion over 3 years
The technical teams of the government and the International Monetary Fund (IMF) have reached an agreement on a bailout package for Pakistan, Adviser to Prime Minister on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Shaikh announced on Sunday. "After months of discussions and negotiations, a staff-level agreement has been reached between Pakistan and the IMF," he said while speaking on state-run PTV News. Dr Shaikh revealed that Pakistan would receive $6 billion worth of assistance under the IMF programme over a period of three years.
National Savings achieves Rs340b collection target
Central Directorate of National Savings (CDNS) has achieved a net target of Rs 340 billion by April 30 of the fiscal year 2018-19 as compared to last year’s collection of Rs120 billion. The total savings held by the CDNS stood at Rs1,676 billion by April 30, while the directorate had Rs740 billion by the same date, a year ago, a senior official of the CDNS told APP here on Sunday. Due to the rationalization of CDNS certificates’ rates, the directorate has collected more savings than expected; therefore it will increase the set target of Rs 224 billion for May 2019. The official said the CDNS notified the upward revision in the profit rates for various saving certificates, which has been applicable from January 1, increasing the trend of people investing more at the CDNS.
Pakistan’s exports to China grow 3.93pc
Pakistan’s exports of goods and services to China grew by 3.93 percent during the first eight months of the current fiscal year compared to the corresponding period of last year, State Bank of Pakistan (SBP) reported. The overall exports to China were recorded at $1150.523 million during July-February (2018-19) against exports of $1107.004 million during July-February (2017-18), PBS data revealed. The deficit during the period under review was recorded at $5482.668 million against $6219.702 million during same period of last year, the data revealed. The commodities that contributed positively growth in exports included fish frozen exports of which grew from $23.563 million last year to $44.048 million during the current fiscal year, showing growth of 86.93 percent.
Pak-Turkey FTA to be signed by mid June
The Free Trade Agreement between Pakistan and Turkey is likely to be signed by mid of June, a senior official in ministry of Commerce said. The decision in this regard was made after the conclusion of 9th round of negotiation between the two sides. Talking to APP, the official informed that during the last round of negotiation the two sides agreed on of final list of tariff lines and Turkey also got ready to give duty free access to local textile product in its market. The dialogue on FTA between the Pakistan and Turkey would conclude in June; followed by final agreement to boost bilateral trade,he said.

The Benchmark KSE100 Index have succeeded in penetration below its major supportive trend line during last trading session. But a positive element also have occurred that index have succeeded in a sharp pull back above 35,000 points before day end which have strengthen a hope among bulls. As of now it's recommended to stay cautious while trading during current trading session because supportive regions are far away at the momentum and falls at 34,600 and 34,300 points respectively while on the flip side index have resistant regions ahead at 36,200 and 36,500 points. It's expected that index would start the day with a positive momentum and after a volatile session it would also close on positive note. It's recommended to start buying on dip during current trading session.