Previous Session Recap
Trading volume at PSX floor increased by 22.01 million shares or 11.09% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 43407.72, posted a day high of 43509.56 and a day low of 43366.67 during last trading session. The session suspended at 43495.07 with net change of 87.35 and net trading volume of 39.44 million shares. Daily trading volume of KSE100 listed companies dropped by 7.8 million shares or 92.35% on DoD basis.
Foreign Investors remained in net selling position of 1.14 million shares and net value of Foreign Inflow increased by 0.06 million US Dollars. Categorically, Foreign Individual and Overseas Paksitanis remained in net selling positions of 0.05 and 2.52 million shares but Foreign Corporate Investors remained in net buying position of 1.42 million shares. While on the other side Local Individuals and Brokers remained in net buying positions of 6.91 and 1.57 million shares but Local Companies, Banks, NBFCs, Mutual Funds and Insurance Companies remained in net selling positions of 2.77, 102, 0.42, 1.79 and 1.19 million shares respectively.
Analytical Review
Asian shares on defensive as new political worries sour mood
Asian stocks were on the defensive on Friday as worries over the U.S. investigation into the Trump Organization tested investor nerves, already frayed by fears U.S. tariffs could hurt the global economy and trigger a trade war. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.2 percent in early trade. Japan's Nikkei .N225 was down 0.3 percent. On Wall Street, the S&P 500 .SPX edged 0.08 percent lower on Thursday, marking its first four-day losing streak of 2018. It hit a session low soon after the New York Times reported that U.S. Special Counsel Robert Mueller had issued a subpoena for documents related to U.S. President Donald Trump’s businesses.
Lobbying intensifies for PSX board polls
With the Pakistan Stock Exchange (PSX) board elections scheduled to be held on April 19, lobbying has intensified between stockbrokers and some independent directors for a place on the new board. While some independent board members have conveyed to the Securities and Exchange Commission of Pakistan (SECP) that the brokers are vying to impose their domination on the new setup, the stock brokers have asked the corporate sector regulator to ensure that fresh faces become independent directors. Sources in the corporate sector regulator told dawn news that independent directors have expressed their concerns mostly verbally and stressed that a strong team of independent directors was needed to counter any manipulation by the brokers.
Govt assures IMF deeper scrutiny of foreign-funded projects
The government has given an undertaking to the International Monetary Fund (IMF) to immediately increase natural gas and electricity tariffs and conduct deeper scrutiny of foreign-funded projects to reduce increasing risks to fiscal and external accounts. The two sides have conceded that limited progress could be achieved in the short time left in the tenure of the government to pursue structural reforms and improve bleeding public sector entities but agreed that procedures could be completed in this regard to move quickly at an opportune time. While the IMF expressed concern that Pakistan’s debt profile, despite improvements in recent years, was deteriorating to touch around 70 per cent of GDP but authorities were optimistic about the impact of recent policy measures.
Protectionism is pernicious: IMF
International Monetary Fund chief Christine Lagarde on Thursday issued a renewed warning against protectionism, saying moves to restrict trade threatened to slow the current global economic expansion. The remarks come as the White House intensifies its confrontations with trade partners, announcing a new trade dispute with India and warning that additional import tariffs could be announced soon. Lagarde statement comes ahead of Monday’s Group of 20 finance ministers meeting in Buenos Aires, where ministers and central bankers will gather from market economies now contending with new US tariffs on steel, aluminum, washing machines and solar panels. Fears of a trade war have drawn rebukes from US lawmakers and sent global stocks tumbling since last week.
Way being paved for property tax collection by LBs
The Sindh government has decided to devolve property tax collection to the local bodies, for which a proper database and capacity building of the relevant local bodies staff would be undertaken soon. A decision was also made to undertake a survey of all buildings in the six district municipal corporations of Karachi; collect qualitative and quantitative data for each building, including property use, to collect the GPS co-ordinates for each building, including digital image, and to build upon the experiences from Sukkur and with participation from the excise and taxation department and the DMCs. These decisions were taken by Chief Minister Syed Murad Ali Shah in a meeting he held with a World Bank team led by senior economist Yoonhee Kim at CM House on Thursday.
Market is expected to remain volatile therefore it is advised to remain cautious while trading today.
Asian stocks were on the defensive on Friday as worries over the U.S. investigation into the Trump Organization tested investor nerves, already frayed by fears U.S. tariffs could hurt the global economy and trigger a trade war. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.2 percent in early trade. Japan's Nikkei .N225 was down 0.3 percent. On Wall Street, the S&P 500 .SPX edged 0.08 percent lower on Thursday, marking its first four-day losing streak of 2018. It hit a session low soon after the New York Times reported that U.S. Special Counsel Robert Mueller had issued a subpoena for documents related to U.S. President Donald Trump’s businesses.
With the Pakistan Stock Exchange (PSX) board elections scheduled to be held on April 19, lobbying has intensified between stockbrokers and some independent directors for a place on the new board. While some independent board members have conveyed to the Securities and Exchange Commission of Pakistan (SECP) that the brokers are vying to impose their domination on the new setup, the stock brokers have asked the corporate sector regulator to ensure that fresh faces become independent directors. Sources in the corporate sector regulator told dawn news that independent directors have expressed their concerns mostly verbally and stressed that a strong team of independent directors was needed to counter any manipulation by the brokers.
The government has given an undertaking to the International Monetary Fund (IMF) to immediately increase natural gas and electricity tariffs and conduct deeper scrutiny of foreign-funded projects to reduce increasing risks to fiscal and external accounts. The two sides have conceded that limited progress could be achieved in the short time left in the tenure of the government to pursue structural reforms and improve bleeding public sector entities but agreed that procedures could be completed in this regard to move quickly at an opportune time. While the IMF expressed concern that Pakistan’s debt profile, despite improvements in recent years, was deteriorating to touch around 70 per cent of GDP but authorities were optimistic about the impact of recent policy measures.
International Monetary Fund chief Christine Lagarde on Thursday issued a renewed warning against protectionism, saying moves to restrict trade threatened to slow the current global economic expansion. The remarks come as the White House intensifies its confrontations with trade partners, announcing a new trade dispute with India and warning that additional import tariffs could be announced soon. Lagarde statement comes ahead of Monday’s Group of 20 finance ministers meeting in Buenos Aires, where ministers and central bankers will gather from market economies now contending with new US tariffs on steel, aluminum, washing machines and solar panels. Fears of a trade war have drawn rebukes from US lawmakers and sent global stocks tumbling since last week.
The Sindh government has decided to devolve property tax collection to the local bodies, for which a proper database and capacity building of the relevant local bodies staff would be undertaken soon. A decision was also made to undertake a survey of all buildings in the six district municipal corporations of Karachi; collect qualitative and quantitative data for each building, including property use, to collect the GPS co-ordinates for each building, including digital image, and to build upon the experiences from Sukkur and with participation from the excise and taxation department and the DMCs. These decisions were taken by Chief Minister Syed Murad Ali Shah in a meeting he held with a World Bank team led by senior economist Yoonhee Kim at CM House on Thursday.
Technical Analysis
The Benchmark KSE100 Index is capped by a descending trend line on daily chart and said trend line is generating crossover with a horizontal resistant region at 43705 and this region would react now as a strong resistance for index. Daily Stochastic and MAORSI are trying to convert themselves to bearish zone which would further pressure and would support bearish sentiment. As of right now its expected that index would remain under pressure until it succeed in closing above 43730 and 43960 points on daily and weekly charts, weekly chart is trying to generate a piercing line therefore today's closing is very important because if index would not succeed in closing above its resistant trend line then a new bearish rally could be witnessed in index which would lead it towards 42860 and 42530 points in coming week. Its recommended to stay cautious while trading today because market is expected to remain volatile.
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