Previous Session Recap
Trading volume at PSX floor increased by 18.47 million shares or 13.39% on DoD basis, whereas the benchmark KSE100 index opened at 34,197.85, posted a day high of 34,259.23 and a day low of 33,929.19 points during last trading session while session suspended at 34,083.53 points with net change of -102.73 points and net trading volume of 99.81 million shares. Daily trading volume of KSE100 listed companies increased by 0.58 million shares or 0.59% on DoD basis.
Foreign Investors remained in net selling positions of 19.77 million shares and net value of Foreign Inflow increased by 1.73 million US Dollars. Categorically, Foreign Individual remained in net buying positions of 0.19 million shares but Foreign Corporate and Overseas Pakistanis investors remained in net selling positions of 17.92 and 2.04 million shares. While on the other side Local Individuals, Banks and Insurance Companies remained in net buying positions of 25.98, 10.01 and 0.80 million shares but Local Companies, NBFCs, Mutual Fund and Brokers remained in net selling positions of 0.60, 0.11, 7.97 and 8.13 million shares respectively.
Analytical Review
Asian shares tick up, sterling off five-month peak as crunch Brexit talks eyed
Asian shares inched higher while sterling came off five-month highs in volatile trade on Wednesday as investors looked to whether Britain can secure a deal to avoid a disorderly exit from the European Union. Officials and diplomats involved in negotiations over the acrimonious divorce between the world’s fifth-largest economy and its biggest trading bloc said that differences over the terms of the split had narrowed significantly. The news lit a fire under European and U.S. equities, which jumped about 1% on Tuesday. The British pound GBP=D3 rocketed to $1.28, a level not seen since May 21. The pound has strengthened nearly 5% over the past week as investors rushed to reprice the prospect of a last-minute Brexit deal before the end-October deadline.
Aptma chief calls for tax-free cotton import
All Pakistan Textile Mills Association Chairman Dr Amanullah Kassim Machiara has urged the government to remove import duty on cotton since the industry would have to spend $1.5 billion on import of 5.5 million bales due to a 35 percent production shortage this year. Dr Amanullah stated this while addressing a press conference along with Punjab APTMA Chairman Adil Bashir at the APTMA office on Tuesday. He said the quality of locally-produced cotton has also deteriorated as compared to other cotton-producing countries. The imposition of duty with heavy incidental impact for the entire value chain meant to produce goods meant for exports, he stressed. “It is an irony that the government’s crop estimates are always on the higher side, which are seldom proved true.
Pakistan LNG cancels huge 10-year LNG tende
State-owned Pakistan LNG has cancelled a tender to buy liquefied natural gas over a 10-year period and may turn to the spot market instead, two sources familiar with the matter told Reuters on Tuesday. The company issued the tender in early June to import 240 LNG cargoes of 140,000 cubic metres each for delivery over 10 years for the country’s second LNG terminal. But it has decided to cancel the tender due to inadequate demand for the super-chilled fuel, one of the sources said.
Growth to slow down to 2.4pc in 2020: IMF
The International Monetary Fund (IMF) on Monday estimated that Pakistan’s economy would slow down to 2.4 per cent in 2020 and pick up quickly after that as stabilisation measures bear result. Speaking at a news conference at the launch of the World Economic Outlook 2019, IMF’s economist Gian Maria Milesi-Ferrtti said Pakistani authorities remained steadfast on fiscal adjustment and the country was now picking up stability as a result. He was responding to a question as to how the renewed tension on Kashmir could impact growth prospects in India and Pakistan, put to Gita Gopinath, the IMF Economic Counsellor and Director of Research Department.
Govt to remove all obstacles to boost country's exports: Dawood
Adviser on Commerce Abdul Razak Dawood has said that the government is committed to increase the country's exports by removing all the obstacles in the way of trade. Addressing a press conference in Islamabad on Tuesday, he said that government has reviewed the definition of export data by including exports from Special Economic Zones (SEZs) in the final figures. He further said that there was difference of $1.2 billion in exports figures of Pakistan Bureau of Pakistan and State Bank of Pakistan in last fiscal year. The government has convened a several meetings of State Bank of Pakistan (SBP), Federal Board of Revenue (FBR) and Pakistan Bureau of Statistics (PBS) to review the definition of export figures.br />
Asian shares inched higher while sterling came off five-month highs in volatile trade on Wednesday as investors looked to whether Britain can secure a deal to avoid a disorderly exit from the European Union. Officials and diplomats involved in negotiations over the acrimonious divorce between the world’s fifth-largest economy and its biggest trading bloc said that differences over the terms of the split had narrowed significantly. The news lit a fire under European and U.S. equities, which jumped about 1% on Tuesday. The British pound GBP=D3 rocketed to $1.28, a level not seen since May 21. The pound has strengthened nearly 5% over the past week as investors rushed to reprice the prospect of a last-minute Brexit deal before the end-October deadline.
All Pakistan Textile Mills Association Chairman Dr Amanullah Kassim Machiara has urged the government to remove import duty on cotton since the industry would have to spend $1.5 billion on import of 5.5 million bales due to a 35 percent production shortage this year. Dr Amanullah stated this while addressing a press conference along with Punjab APTMA Chairman Adil Bashir at the APTMA office on Tuesday. He said the quality of locally-produced cotton has also deteriorated as compared to other cotton-producing countries. The imposition of duty with heavy incidental impact for the entire value chain meant to produce goods meant for exports, he stressed. “It is an irony that the government’s crop estimates are always on the higher side, which are seldom proved true.
State-owned Pakistan LNG has cancelled a tender to buy liquefied natural gas over a 10-year period and may turn to the spot market instead, two sources familiar with the matter told Reuters on Tuesday. The company issued the tender in early June to import 240 LNG cargoes of 140,000 cubic metres each for delivery over 10 years for the country’s second LNG terminal. But it has decided to cancel the tender due to inadequate demand for the super-chilled fuel, one of the sources said.
The International Monetary Fund (IMF) on Monday estimated that Pakistan’s economy would slow down to 2.4 per cent in 2020 and pick up quickly after that as stabilisation measures bear result. Speaking at a news conference at the launch of the World Economic Outlook 2019, IMF’s economist Gian Maria Milesi-Ferrtti said Pakistani authorities remained steadfast on fiscal adjustment and the country was now picking up stability as a result. He was responding to a question as to how the renewed tension on Kashmir could impact growth prospects in India and Pakistan, put to Gita Gopinath, the IMF Economic Counsellor and Director of Research Department.
Adviser on Commerce Abdul Razak Dawood has said that the government is committed to increase the country's exports by removing all the obstacles in the way of trade. Addressing a press conference in Islamabad on Tuesday, he said that government has reviewed the definition of export data by including exports from Special Economic Zones (SEZs) in the final figures. He further said that there was difference of $1.2 billion in exports figures of Pakistan Bureau of Pakistan and State Bank of Pakistan in last fiscal year. The government has convened a several meetings of State Bank of Pakistan (SBP), Federal Board of Revenue (FBR) and Pakistan Bureau of Statistics (PBS) to review the definition of export figures.br />
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index succeed in maintaining above its major supportive region of 34,000 points during last trading session but momentum indicators are still in bearish mode and it's expected that index would remain bearish until it would succeed in closing above 34,460 points on daily chart. Therefore it's recommended to post trailing stop loss on long positions because if index would succeed in sliding below then it can target 33,660 and 33,200 points in coming days. While on flipside index would face strong resistances between 34,460 till 34,800 points and daily closing above 34,800 points would call for 35,200 points.
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