PSX Daily Market Review - 15th May 2019

Trading volume at PSX floor dropped by 15.50 million shares or 12.79% on DoD basis, whereas the benchmark KSE100 index opened at 33,932.93, posted a day high of 34,067.27 and a day low of 33,691.66 points during last trading session while session suspended at 33,885.09 with net change of -15.29 points and net trading volume of 82.18 million shares. Daily trading volume of KSE100 listed companies dropped by 7.78 million shares or 8.65 on DoD basis.
Foreign Investors remained in net selling positions of 1.65 million shares and net value of Foreign Inflow dropped by 2.17 million US Dollars. Categorically, Foreign Corporate remained in net selling positions of 2.10 million shares but Overseas Pakistanis investors remained in net buying positions of 0.46 million shares. While on the other side Local Individuals, Local Companies, Banks, NBFCs and Insurance Companies remained in net buying positions of 3.57, 7.41, 1.19, 0.07 and 0.21 million shares but Mutual Fund and Brokers remained in net selling positions of 8.63 and 1.37 million shares respectively.

Asia stocks bounce from three-and-a-half month lows as trade fears soften
Asian stocks bounced from a 3-1/2-month low on Wednesday as a slight softening in rhetoric from U.S. President Donald Trump helped ease worries about the U.S.-China tariff war and on expectations Beijing could release more economic stimulus. Shares in Asia were led by strong gains in Chinese equities, which rebounded after two days of losses. “Chinese stocks are mounting a rebound as they had been oversold in recent sessions. Sentiment is also better as President Trump seems to be desiring a compromise,” said Kota Hirayama, senior emerging markets economist at SMBC Nikko Securities in Tokyo.
CRBC delegation visits BoI to discuss progress on Rashakai SEZ
A delegation of China Road and Bridge Cooperation (CRBC), led by Director Shi Xiaobo, visited Board of Investment (BoI) to discuss the timelines to make the Rashakai Special Economic Zone (SEZ) operational. The meeting was chaired by Chairman BoI, Haroon Sharif, and attended by Secretary BOI, Executive Director General BOI and other team members, said a press release issued by BOI here on Tuesday. During the meeting, Chairman BoI explained that the Rashakai SEZ has a strategic significance as it is closer to Afghanistan and Central Asian Countries. He added that BOI is strengthening its capacity to have specific desks and teams to deal with investors from different countries, as well as to work on important assignments, including SEZs with particular focus on Rashakai SEZ.
UAE companies agree to invest in Gwadar: envoy
Pakistan and United Arab Emirates (UAE) have agreed to promote bilateral ties and emphasized the need to further promote economic and trade relations between the two countries. “There were many companies in UAE which were keen to invest in Gwadar and they recently visited Pakistan for the purpose,” the Ambassador of the United Arab Emirates, Hamad Obaid Ibrahim Salem Al-Zaabi stated in a meeting with the Adviser to Prime Minister on Finance, Revenue and Economic Affairs, Dr. Abdul Hafeez Shaikh, on Tuesday. The Ambassador reiterated his country commitment to stand by Pakistan for its time of economic crisis.
Opec sees more 2019 demand for its oil as it keeps cutting output
OPEC said on Tuesday that world demand for its oil would be higher than expected this year as supply growth from rivals including U.S. shale producers slows, pointing to a tighter market if the exporter group refrains from raising output. But the Organization of the Petroleum Exporting Countries, in a monthly report, said its output fell in April. Top exporter Saudi Arabia cut output despite oil prices hitting a 2019 high above $75 a barrel and U.S. President Donald Trump urging action to lower prices. Supply losses in OPEC members Iran and Venezuela, both under U.S. sanctions, have deepened the impact of an OPEC-led production-limiting deal. The so-called OPEC+ group of producers meets next month to review whether to maintain the pact beyond June.
ECC likely to approve additional supply of 150MW to KE
The government is expected to approve on Wednesday a plan for procurement of about 6.9 million tonnes of wheat in the public sector during 2019-20 and allow the sale of additional 150MW cheaper electricity from the national grid to K-Electric without settlement of old liabilities. A meeting of the Economic Coordination Committee (ECC) of the Cabinet has been called on Wednesday to also formally approve Rs3 per unit subsidy announced by the prime minister for the industrial sector. Finance and Revenue Adviser Dr Abdul Hafeez Shaikh will preside over the meeting.

The Benchmark KSE100 Index have tried to bounce back after getting support from a horizontal supportive region during last trading session and it’s expected that it would now try to create a morning star on daily chart which may lead index towards a reversal in coming days. It’s recommended to stay cautious and start buying on dip with strict stop loss of 33,300 points because downward penetration of 33,300 points would call for 32,500 points initially. While on flipside index would face resistances at 34,500 and 34,760 points initially while closing above 35,300 would change short term trend of index. Some volatile moves could be witnessed during current trading session therefore it’s recommended to stay calm and start buying in chunks.