PSX Daily Market Review - 16th July 2019

Trading volume at PSX floor increased by 13.68 million shares or 24.65% on DoD basis, whereas the benchmark KSE100 index opened at 33,644.53, posted a day high of 33,646.59 and a day low of 32,895.82 points during last trading session while session suspended at 32,958.35 points with net change of -714.14 points and net trading volume of 52.23 million shares. Daily trading volume of KSE100 listed companies increased by 8.86 million shares or 20.43% on DoD basis.
Foreign Investors remained in net selling positions of 2.23 million shares but net value of Foreign Inflow increased by 1.16 million US Dollars. Categorically, Foreign Corporate Investors remained in net buying positions of 0.34 million shares but Overseas Pakistanis remained in net selling positions of 2.58 million shares. While on the other side Local Individuals, Companies, Banks and Insurance Companies remained in net buying positions of 7.87, 4.97, 0.21 and 0.86 million shares respectively but Local Mutual Funds and Brokers remained in net selling positions of 8.77 and 2.99 million shares.

Asian shares inch up as cautious investors await U.S. data, earnings
Major Asian equity indicators nudged higher on Monday as investors awaited U.S. retail sales data and corporate earnings to gauge the health of the world’s biggest economy, with markets remaining focused on a likely U.S. rate cut this month. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.17%, with losses in Chinese shares capping gains elsewhere in the region. China’s blue-chip CSI300 index was 0.4% lower. South Korea’s KOSPI, which spent the morning flickering between small gains and losses, was last up 0.24%. Shares in Taiwan were flat, while the Australian market was up less than 0.1%. Japan’s Nikkei stock index dipped 0.74%.
Ecnec approves 13 uplift projectss
The Executive Committee of the National Economic Council (ECNEC) has approved 13 development projects, which are related to water, power, health, education and infrastructure. Adviser to the Prime Minister on Finance Abdul Hafeez Sheikh chaired the meeting of the ECNEC. ECNEC approved “Dasu hydropower project (stage 1) Revision of cost for land acquisition and built up of property”, subject to opinion of the Law Ministry on the revision of cost of land and built up property after imposition of section 4 of Land acquisition Act of 1894. The chair also directed that the Ministry of Law may be requested to give its opinion in a week’s time to save the project from further delay. The project is financed by World Bank and WAPDA and is designed to provide 4,320 MW of electricity in two stages.
Textile industry urges govt to end post budget uncertainty
The All Pakistan Textile Mills Association (APTMA) Chairman Syed Ali Ahsan has urged the government to end post budget uncertainty, which is adversely impacting production, employment and exports in the country. He was addressing a press conference on Monday afternoon. Patron-in-Chief APTMA Gohar Ejaz was also present on the occasion. While highlighting the situation on ground in the wake of withdrawal of zero rating (SRO 1125) for five exporting industries, he said sales / transaction in the local market are at halt, supply chain of the industry has disrupted, stocks are being piled up, liquidity crunch is forcing closure of mills that is translating into massive unemployment and export orders are not being finalized.
FBR seeks Power Div’s support for implementation of Section 181AA of IT Ord
Federal Board of Revenue (FBR) has sought Power Division’s support for implementation of Section 181AA of Income Tax Ordinance. Chairman Federal Board of Revenue Syed Muhammad Shabbar Zaidi, in his letter to Ministry of Power, has sought its help for the implementation of Section 181AA of Income Tax Ordinance-2001 which specifically stipulates that any application for commercial or industrial connection of electricity or gas shall not be processed and such connection shall not be provided unless the person applying for electricity or gas connection is registered under the said Section which pertains to filing of income tax returns. Chairman FBR has further added that FBR has extended the date of filing the return of income for the year 2018 to August 2, 2019 to facilitate filing of return by all persons who were required to file the return of income but have not filed so far. Chairman FBR has requested Ministry of Power to issue instructions to Power Distribution Companies to apprise them that it is mandatory to be on ‘Active Taxpayers List (ATL)’ for every commercial and industrial electricity or gas consumer. Chairman FBR appreciated the cooperation of Ministry of Power for providing the data of industrial and commercial users of electricity and hoped that Ministry of Power would also help in the implementation of Section 181AA of Income Tax Ordinance through the involvement of respective ‘Distribution Companies’.
FDI falls to four-year low
The foreign direct investment (FDI) dipped 50 per cent to hit a four-year low as inflows from Beijing dried out after completion of the first phase of the China-Pakistan Economic Corridor (CPEC). Data published by the State Bank of Pakistan revealed that FDI halved to $1.737 billion from $3.471 same period last year. The bleak figures come at a time when the government is struggling to contain significant economic challenges on the back of large fiscal and financial needs and weak and unbalanced growth. Inflows from China, leading investor in the country, during FY19 fell to $540 million compared to $2bn during FY18 as the CPEC enters into the second phase.

The Benchmark KSE100 index have entered into bearish zone by closing below its major supportive region of 34,000 points at last weekend and now last hope for bulls is a rising trend line on weekly chart which fall at 32,400 points and it's expected that index would try to find ground at that region but it's recommended to stay cautious while trading during current trading session because if index would succeed in sliding below 32,700 points during current trading session then a free fall could be witnessed towards 32,500-32,400 points. As of now index would try to find support at 32,400 and then 31,700 points while on flip side any bullish spike would be capped around 33,600 or 34,000 points.