PSX Daily Market Review - 14th June 2019

Trading volume at PSX floor increased by 3.35 million shares or 2.22% on DoD basis, whereas the benchmark KSE100 index opened at 34,880.34, posted a day high of 35,501.34 and a day low of 34,858.14 points during last trading session while session suspended at 35,403.07 with net change of 465.14 points and net trading volume of 118.53 million shares. Daily trading volume of KSE100 listed companies increased by 4.96 million shares or 4.36% on DoD basis.
Foreign Investors remained in net selling positions of 22.28 million shares and net value of Foreign Inflow dropped by 2.26 million US Dollars. Categorically Foreign Individuals, Foreign Corporate and Overseas Pakistani investors remained in net selling positions of 0.63, 19.65 and 2.00 million shares. While on the other side Local Individuals, NBFCs, Mutual Fund and Brokers remained in net buying positions of 15.19, 1.02, 14.09 and 0.27 million shares respectively but Local Companies, Banks and Insurance Companies remained in net selling positions of 0.94, 1.17 and 5.97 million shares.

Asia stocks steady after oil surge lifts Wall Street
Asian stocks held their ground on Friday after Wall Street gained on a surge in oil prices as attacks on tankers in the Gulf of Oman stoked U.S.-Iran tensions and raised concerns over supply flows through one of the world’s main sea lanes.MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed. Australian stocks edged up 0.05% while Japan’s Nikkei dipped 0.1%. U.S. stocks rose on Thursday after two days of declines, with energy shares rebounding on the back of crude oil’s surge. [.N] Wall Street shares have had a strong run in June on hopes the Federal Reserve will ease monetary policy soon to counter a slowing global economy due to the escalating trade war with China. The S&P 500 index is up about 5% so far for the month. But equity market gains were limited ahead of the Fed’s June 18-19 meeting, which will give investors an opportunity to see if the Fed’s monetary policy stance is in sync with market expectations for a near-term rate cut.
Oil prices surge after suspected tanker attack near Iran
Oil prices jumped as much as 4 per cent on Thursday after a suspected attack on two tankers in the Gulf of Oman near Iran and the Strait of Hormuz, through which a fifth of global oil consumption passes. The Marshall Islands-flagged Front Altair carrying naphtha and the Panama-flagged Kokuka Courageous carrying methanol have been evacuated and the crews were safe, shipping sources said. The charterer of the former said the vessel was “suspected of being hit by a torpedo”. The manager of the latter said it had been damaged as a result of a “suspected attack” but that its cargo was intact. The incident followed last month's nearby sabotage attacks on vessels off the Fujairah emirate, one of the world's largest bunkering hubs. Brent crude futures were up $1.91, or 3.18pc, at $61.88 a barrel by 1039 GMT, having risen as much as 4.45pc to $62.64.
Uber enlists 'Qute' to take on India's choked, polluted roads
Uber Technologies Inc has launched a new ride-hailing service in India's tech capital Bengaluru that will use miniature gas-powered cars called “Qute” to win over commuters stressed out by the sprawling city's heavily-congested streets. Uber's first market in India, Bengaluru has struggled to hold onto its nickname as the “Garden City” over the past two decades as its population tripled and infrastructure failed to keep up, stranding drivers in huge rush-hour traffic jams. The chunky, low-powered vehicles, made by Bajaj Auto Ltd, are billed as a greener alternative to ordinary cars and India's ubiquitous three-wheel auto rickshaws, sometimes called tuk-tuks, which are cheap but give passengers hardly any protection from petrol fumes and monsoon rains.
PFIA urges govt to withdraw SRO 237
Pakistan FMCG Importers Association (PFIA) said linking CNIC of every unregistered buyer compulsory for sale of goods will make business further difficult for the commercial importers and distributors. In a statement issued on Thursday, PFIA reacted on the proposal announced in finance bill 2019-20. The proposal also states that failing in obtaining CNIC number of the unregistered buyer will disallow claiming of input tax adjustment against any such sale. PFIA Vice Chairman Muhammad Ejaz Tanveer, Secretary General Ali Tariq Mattoo and Shoaib Saeed said that this proposal is impracticable and severely hamper the government efforts of enhancing tax collection. They regretted that the government did nothing to withdraw the controversial SRO 237 in budget for next year which is not only discouraging the legal importers but also encouraging the evils such as smuggling and under-invoicing.
ICCI for removal of duties on primary raw material of steel industry
The Islamabad Chamber of Commerce and Industry (ICCI) has called upon the government to remove all customs and regulatory duties on the primary raw material of steel industry like melt able steel scrap in the budget to counter the cost increase caused by currency devaluation, interest rate hike, raise in power tariff and new taxation measures. Rafat Farid, acting president Islamabad Chamber of Commerce and Industry, said that government has abolished the special procedures of sales tax for steel industry in the budget 2019-20, however, he stressed that government should come up with some policy interventions for reducing the cost of doing business for this important industry so that it could play more effective role in the economic development and exports of the country. He said that if duties on re-melt able scrap were not removed, capacity utilizations of steel industry would decrease leading to drastic fall in government revenue.

The Benchmark KSE100 Index have tried to penetrate its major resistant region of 35,500 points during last trading session but have not succeeded in doing so but daily momentum indicators have succeeded in generating a bullish crossover which would try to lead index further advance and if it would succeed in closing above 35,500 points today then a short term spike would be witnessed which would push index towards 36,300 & 37,500 points. While on flip side index would find supports at 35,081 and 34,500 points in case of any pressure. It's recommended to post trailing stop loss on long positions until index close above 35,500 points.