PSX Daily Market Review - 14th May 2019

Trading volume at PSX floor increased by 81.92 million shares or 209.92% on DoD basis, whereas the benchmark KSE100 index opened at 34,850.59, posted a day high of 35,227.92 and a day low of 33,779.66 points during last trading session while session suspended at 33,900.38 with net change of -816.15 points and net trading volume of 89.96 million shares. Daily trading volume of KSE100 listed companies increased by 59.84 million shares or 198.65 on DoD basis.
Foreign Investors remained in net buying positions of 5.82 million shares and net value of Foreign Inflow increased by 6.93 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistanis remained in net buying positions of 5.24 and 0.62 million shares but Foreign Individuals investors remained in net selling positions of 0.05 million shares. While on the other side Local Individuals, Local Companies, NBFCs and Brokers remained in net buying positions of 0.26, 6.36, 0.55 and 3.29 million shares but Banks, Mutual Fund and Insurance Companies remained in net selling positions of 3.05, 11.99 and 3.13 million shares respectively.

Asian shares extend losses as U.S.-China trade war escalates
Asian shares deepened losses on Tuesday amid a fresh deterioration in the Sino-U.S. tariff war, although comments from U.S. President Donald Trump that he expected trade negotiations to be successful helped stabilize sentiment. China on Monday announced it would impose higher tariffs on $60 billion of U.S. goods following Washington’s decision last week to hike its own levies on $200 billion in Chinese imports. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.9% in mid-morning trade, after earlier touching its lowest level since Jan. 30.
Trump says he hasn’t decided to tariff remaining $325 billion in Chinese goods
The US President says he has not “made that decision yet” on whether to put tariffs on another $325 billion in Chinese goods after the latest round of tariffs introduced on Friday. “We have the right to do [tariffs on] another $325 billion at 25% in additional tariffs” on Chinese goods, Trump said, while adding that he “has not made that decision yet.” The US President also noted that the latest round of retaliatory tariffs announced by China on Monday puts the United States in a great position and represents “a very positive step” in the ongoing trade negotiations, CNBC reported. “I love the position we’re in,” Trump said, adding, “There can be some retaliation, but it can’t be very substantial by comparison.”
Rs2.94b yet to be paid to affectees of Mirani Dam
A Senate panel was Monday informed that so far only Rs 560 million compensation has been paid for houses to the affectees of Mirani Dam while Rs 2.94 billion for trees has yet to be paid. Senate Standing Committee on Water Resources that met under the chairmanship of Senator Shamim Afridi noted that more than four years have passed since federal government transferred the money to the provincial government for payment to the affectees of Mirani dam but it is still parked in the account.
Cabinet set to address medicine price hike issue today
With the PTI-led government coming under increasing public and political pressure to rein in sweeping price hike of medicines, the federal cabinet plans to take up the issue when it meets on Tuesday (today) and discuss ways by which they can dial down the prices. “We have decided to take up the matter of medicines in the meeting of the federal cabinet, scheduled on Tuesday [today], and hope there will be substantial reduction,” said Health Secretary Zahid Saeed before the Senate Standing Committee on National Health Services (NHS) on Monday. The committee was discussing the ‘Point of Public Importance’ on the topic of the recent increase in the prices of medicines raised by Senator Sirajul Haq, the chief of Jamaat-i-Islami.
PM takes ruling alliance into confidence on IMF package
Prime Minister Imran Khan on Monday took parliamentarians of the ruling Pakistan Tehreek-i-Insaf (PTI) and its allies into confidence on the $6 billion bailout package finalised with the International Monetary Fund (IMF) and overall economic policies of the government. On the other hand, the opposition demanded that the government apprise parliament of the agreement made with the IMF. During a meeting chaired by the prime minister, the PTI parliamentarians and its allies were briefed by Adviser to the Prime Minister on Finance Dr Hafeez Shaikh on the IMF deal.

The Benchmark KSE100 Index have penetrated its bearish trend channel in downward direction during last trading session but right now a strong supportive region is standing ahead at 33,300 points which falls on a strong horizontal supportive region. While daily momentum indicators have reached oversold region and it's expected that index would try to take a spike before this weekly closing to maintain its momentum. For current trading session it's recommended to start buying on dip for day trading and start profit taking with slight margins because index is expected to remain volatile and a range bound situation could be witnessed.