PSX Daily Market Review - 17th May 2019

Trading volume at PSX floor dropped by 2.31 million shares or 2.08% on DoD basis, whereas the benchmark KSE100 index opened at 34,361.92, posted a day high of 34,416.46 and a day low of 33,574.85 points during last trading session while session suspended at 33,971.12 with net change of -320.53 points and net trading volume of 85.08 million shares. Daily trading volume of KSE100 listed companies dropped by 7.11 million shares or 7.71 on DoD basis.
Foreign Investors remained in net buying positions of 1.01 million shares and net value of Foreign Inflow increased by 0.23 million US Dollars. Categorically, Foreign Individuals and Corporate remained in net buying positions of 0.09 and 3.23 million shares but Overseas Pakistanis investors remained in net selling positions of 2.31 million shares. While on the other side Local Companies and Banks remained in net buying positions of 4.36 and 2.18 million shares but Local Individuals, NBFCs, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 0.80, 2.21, 2.20, 2.06 and 1.64 million shares respectively.

Asian shares feeling blue as Shanghai turns red
Asian shares were struggling to end a bleak week in the black on Friday as upbeat U.S. economic news and solid company earnings offered only a fleeting respite from the interminable Sino-U.S. trade dispute. Shanghai stocks slipped amid the fallout from President Donald Trump’s move to block China’s Huawei Technologies from buying vital American technology. The Communist Party’s People’s Daily used a front page commentary to evoke the patriotic spirit of past wars, saying the trade war would never bring China down. “It is hard to get too excited as the news flows in the trade front points to an escalation rather than an ease in tensions,” said Rodrigo Catril, senior FX strategist at National Australia Bank.
ACCA, Atlas Copco join hands
ACCA and Atlas Copco Pakistan have agreed to work together for the promotion of sustainable business practices in Pakistan. Both the organisations will be collaborating to develop future-ready talent to meet the requirements of a digital age. The focus of their partnership will be to train a new generation of professional accountants who possess a right blend of digital, technical, ethical, strategic and professional skills to meet the future needs and demands of the increasingly digitised profession. At an exclusive ceremony in Lahore, ACCA also announced the Approved Employer status for Atlas Copco’s operations in Pakistan to recognise company’s efforts to invest in their employees by providing specialist training.
PPAF awarded for services towards financial inclusion
Pakistan Pover­ty Alleviation Fund (PPAF) has won the prestigious CIS Islamic Bank­ing and Finance for being the best contributor to the Islamic finance industry. The award was given at a ceremony held in Tashkent, Uz­bekistan.PPAF was selected for successful­ly implementing the Interest Free Loan Program across Pakistan.
APG raises questions over efforts against terror financing
Pakistan faced harsh questioning on effectiveness of its efforts against money laundering and terror financing at the “face-to-face meeting” of the Asia-Pacific Group (APG) on money laundering, a regional affiliate of the Financial Action Task Force (FATF). A 10-member delegation led by Finance Secretary Mohammad Younas Dagha represented Pakistan at the two-day APG meeting in Guangzhou, China. It briefed the group about the country’s updated actions against currency smuggling, proscribed organisations and tightening of financial and corporate sector systems and operational effectiveness.
Rupee fall reflects market conditions: SBP
In what seemed like a repeat of similar episodes in the past, the rupee saw a steep fall against the dollar as soon as foreign exchange markets opened on Thursday morning. “The exchange rate in the interbank market closed today at Rs146.52 per USD from yesterday’s close of Rs141.40,” the State Bank said in a brief statement sent out by its spokesman via an instant messaging platform after the close of trade later in the day. “The dollar began climbing almost immediately as trading began,” one treasury head of a major bank, who did not wish to be named, told Dawn. “We called the State Bank to ask what is going on, and were told that today there is no set value for purchasing dollars. That’s when the steep falls began.”

The Benchmark KSE100 Index have bounced back after getting support from a horizontal supportive region during last two trading sessions and have tried to format a morning shooting star on daily chart which may be confirmed today if index would succeed in closing above 34,660 points on daily basis during current trading session. Daily momentum indicators have generated bullish crossovers which is indication of start of a bullish rally but hourly momentum have changed to bearish side therefore a slight dip could be witnessed during current trading session at start. It's recommended to stay cautious because if index would not succeed in establishing momentum above 33,900 points then a serious free fall also could be witnessed. As of now index have supportive regions ahead at 34,000 & 33,700 points while on flipside index would face resistances at 34,660 & 35,200 points.