PSX Daily Market Review - 16th April 2019

Trading volume at PSX floor dropped by 17.35 million shares or 9.16% on DoD basis, whereas the benchmark KSE100 index opened at 37,431.00, posted a day high of 37,698.79 and a day low of 37,281.15 points during last trading session while session suspended at 37,504.08 with net change of 166.21 points and net trading volume of 134.91 million shares. Daily trading volume of KSE100 listed companies increased by 8.95 million shares or 7.11% on DoD basis.
Foreign Investors remained in net selling positions of 8.99 million shares and net value of Foreign Inflow dropped by 4.36 million US Dollars. Categorically, Foreign Individuals, Corporate and Overseas Pakistani investors remained in net selling positions of 0.4, 7.49 and 1.1 million shares respectively. While on the other side Local Individuals, Companies and Brokers remained in net buying positions of 14.13, 2.75 and 0.9 million shares respectively but Local Banks, NBFCs, Mutual Funds and Insurance companies remained in net selling positions of 7.59, 0.16, 0.49 and 0.69 million shares respectively.

Asia stocks hover below nine-month high after Wall Street stalls
Asian stocks hovered below a nine-month high on Tuesday after disappointing bank earnings dented Wall Street, though recent signs that the global economy is likely to avoid a sharper downturn helped limit the losses. MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed by mid-morning. The index had risen to its highest level since July 2018 the previous day after strong export and banking data from China last week eased investors’ concerns about the health of the world’s second-largest economy. Expectations that Chinese and U.S. trade negotiators would strike a deal soon also lifted market confidence. The Shanghai Composite Index lost 0.1 percent. South Korea’s KOSPI fell 0.1 percent, Australian stocks added 0.5 percent. Japan’s Nikkei edged up 0.2 percent.
Cabinet being briefed on proposed tax amnesty scheme today
Top economic mangers of the country would brief the federal cabinet on proposed tax amnesty scheme today (Tuesday). “The Federal Board of Revenue (FBR) and Ministry of Finance will brief the cabinet on the proposed tax amnesty scheme,” said an official of the FBR on Monday. He further said that government is likely to issue Presidential Ordinance to announce the tax amnesty scheme after getting approval from the cabinet’s meeting. “The government is giving last chance to those people who had not declared their wealth to legalize it by paying nominal tax,” he added. He said that government is already taking action against non-taxpayers and Benami properties and account holders. The FBR had issued notices to Benami account holders. Similarly, the FBR had issued notices to 6400 non-taxpayers in the first stage. Around 44,00 banks accounts had been attached and 78 properties and 46 vehicles would be auctioned. Meanwhile, FBR, in its drive to broaden the tax base of the country, has identified 6800 non-taxpayers in commercial plazas and shopping malls in three mega cities of Karachi, Lahore and Islamabad.
Latest technology being introduced in power sector
Minister for Power Omar Ayub Khan Monday said that the latest technology was being introduced to improve the efficiency of the power sector in the country. Talking to PTV news channel, minister said transmission system was also being improved to meet electricity demand in the coming summer season. The action has been taken against the power pilferage, he said, adding thirty thousand cases were registered and about three thousand people involved in the pilferage were sent behind the bars.
IMF bailout package agreed upon in writing: Asad
Pakistan and the International Monetary Fund (IMF) have finalised, documented and signed a bailout package on exchange rate, public finance, fiscal deficit and energy prices and an IMF mission will be visiting Islamabad in the third week of the current month to work out technical tables, said Finance Minister Asad Umar. “We have reached an agreement and all the major issues have been settled and documented,” Mr Umar told a meeting of the National Assembly’s Standing Committee on Finance and Revenue on Monday after a weeklong visit to the US. He also reported that Pakistan had dispatched a compliance report to the Financial Action Task Force (FATF) that would be reviewed by the Paris-based agency before sending its delegation to Islamabad by the third week of May for on-ground inspection.
Govt pays $1bn against Eurobonds
Pakistan has paid $1 billion of the total $2bn raised in 2014 through the issue of five-year and 10-year Eurobonds, the State Bank of Pakistan (SBP) announced on Monday. The issue, held in April 2014, was censured by independent economists who criticised the high rates offered to sell these bonds. The returns offered on the five-year bonds were at 7.25 per cent and 10-year bonds at 8.25pc which were considered too high at the time reflective of the risks attached with Pakistan’s economy.

PSO, EFOODS, ENGRO, DGKC and MLCF would try to lead the negative momentum on intraday basis, while SNGP, PAEL and DOL would try to support bullish sentiment.

The Benchmark KSE100 Index have bounced back after getting resistance from a horizontal resistance at 37,700 points during last trading session and now it’s expected that index would remain under pressure during first half because hourly momentum indicators have changed their direction to bearish side and a doji have been formatted on daily chart which would try to vanish positive momentum created by a morning star previously. As chance of occurrence of an evening star on daily chart has become evident in response to previous morning star therefore it’s recommended to stay cautious while trading during current trading session and it’s recommended to post strict stop loss on long positions.