PSX Daily Market Review - 15th July 2019

Trading volume at PSX floor increased by 16.02 million shares or 40.58% on DoD basis, whereas the benchmark KSE100 index opened at 33,865.68, posted a day high of 34,001.76 and a day low of 33,599.48 points during last trading session while session suspended at 33,672.49 points with net change of -202.91 points and net trading volume of 43.37 million shares. Daily trading volume of KSE100 listed companies increased by 19.98 million shares or 85.39% on DoD basis.
Foreign Investors remained in net selling positions of 0.51 million shares but net value of Foreign Inflow increased by 0.67 million US Dollars. Categorically, Foreign Individuals and Corporate investors remained in net selling positions of 0.04 and 0.53 million shares but Overseas Pakistani investors remained in net buying positions of 0.06 million shares. While on the other side Local Individuals, Companies, Brokers and Insurance Companies remained in net buying positions of 0.58, 1.32, 4.32 and 0.04 million shares respectively but Local Banks and Mutual Funds remained in net selling positions of 0.2 and 3.99 million shares.

Asian shares, dollar brace for China GDP
Asian shares started the week on a softer note on Monday after posting their first weekly decline since early June, while the dollar was on the defensive ahead of key economic data from China. MSCI’s broadest index of Asia-Pacific shares outside Japan was a shade lower at 524.9 points. It fell a little more than 1% last week, snapping five straight weeks of gains. Australian shares slipped 0.8% while South Korea’s KOSPI inched 0.3% lower. Markets will be focused on Chinese gross domestic product data due at 0200 GMT, where analysts expect second-quarter growth to have slowed to 6.2% from a year earlier - the weakest annual pace since early 1992.
Traders refuse to submit tax returns until acceptance of demands
All Pakistan Anjuman-e-Tajran (APAT) central general secretary Naeem Mir on Saturday announced that traders have refused to submit tax returns of 2019 until acceptance of their genuine demands. And if our demands are not fulfilled traders might start drive not to submit their commercial power bills. He congratulated the traders community for successful shutter down strike across the country, which indicates that the traders issues are genuine and they want their solution through dialogues. He was addressing the business community at Faisal Chowk along with other trade leaders. “We are in favour of dialogues and we are ready to hold dialogues with PM Imran Khan,” he stated. He suggested that the noted chartered accountant from Karachi Ashfaq Tola, who was also the chief of the anomaly committee of the FBR, can assist the PM in dialogue process with the traders. He said that our demands are genuine and true and we will fight till the end for the redressal of our issues. We will decide next procedure of action after consultation with other groups of traders which may include long march to FBR office, sit-in and shutter down strike for indefinite period.
PM directs to form commission to probe 'who’s responsible for Reko Diq predicament'
The Pakistani government will conduct an internal review of Inter­national Centre for Settle­ment of Investment Disp­utes' (ICSID) "long-standing arbitration" between the state and Tethyan Copper Company (TCC) while a commission will be formed to investigate who was responsible for the predicament that may cost Pakistan $5.976 billion, it emerged on Sunday. A press release by the office of the Attorney General for Pakistan, dated July 13, was released after the ICSID announced a hefty award of $5.976 billion against Pakistan in the long-running Reko Diq case. The international tribunal which provides facilities for conciliation and arbitration of international investment disputes, rendered its judgement on Friday — a 700-page ruling against Pak­istan in the Reko Diq case.
Govt to establish CPEC authority to speed up work on projects
Reiterating the government's resolve of 'no compromise' on the development of China Pakistan Economic Corridor (CPEC), Minister for Planning and Development Khusro Bakhtiar on Saturday said that the government would soon establish a CPEC authority to speed up work on projects under it. According to a statement released by the ministry, "To institutionalise and take forward the cooperation, CPEC Secretariat is being transitioned and elevated into an autonomus authority under Ministry of Planning, Development and Reform."
China explores market to import fruit from Pakistan’s northern region
China stepped up its efforts to explore market in Pakistan’s northern region for importing the country’s popular fruits like cherry. A delegation of Chinese quarantine experts and government officials recently visited the picturesque Gilgit-Baltistan region – home to cherry orchards in Pakistan. They checked the farm-to-market quality of Pakistani cherry. And, according to Pakistani officials, the visitors returned home satisfied, reports China Economic Net (CEN). A group of journalists including those from Economic Daily – China Economic Net (CEN) went to a cherry orchard in the Gilgit–Baltistan region and talked with officials, growers and exporters for cherry’s export to China.

The Benchmark KSE100 index have penetrated below a supportive trend line during last trading session after a week of bearish pressure and closed blow 33,700 points which was being considered as a strong support. As of now it's expected that index would remain under pressure until it would succeed in closing above 34,500 points in coming days therefore it's recommended to stay cautious because index would try to find some ground at 33,500 and 33,300 points and if these both regions would not become able to push index upward then a new low could be witnessed. while on flip side index would face resistances at 34,000 and 34,300 points on intraday basis. It's recommended to stay side line and post strict stop loss on existing long positions and avoid short selling also on current position.
PSO would try to open with a negative gap and it's expected it would be joined by ATRL as well in this negative trend, while later on DGKC and MLCF would join this negative sentiment as these both scripts would try to target 48 and 20.60 respectively.