PSX Daily Market Review - 18th April 2019

Trading volume at PSX floor increased by 32.89 million shares or 23.49% on DoD basis, whereas the benchmark KSE100 index opened at 37,385.04, posted a day high of 37,418.67 and a day low of 37,692.21 points during last trading session while session suspended at 36,752.57 with net change of -629.38 points and net trading volume of 123.09 million shares. Daily trading volume of KSE100 listed companies increased by 27.76 million shares or 29.13% on DoD basis.
Foreign Investors remained in net buying positions of 0.19 million shares and net value of Foreign Inflow increased by 0.73 million US Dollars. Categorically, Foreign Individuals, and Overseas Pakistani remained in net selling positions of 0.48 and 7.19 million shares but Foreign Corporate investors remained in net buying positions of 7.85 million shares respectively. While on the other side Local Individuals, Local Companies, Banks, NBFCs and Brokers remained in net buying positions of 14.31, 9.50, 2.45, 0.09 and 2.66 million shares respectively but Mutual Funds and Insurance companies remained in net selling positions of 23.36 and 5.21 million shares respectively.

Asian shares off nine-month peak, European PMIs in focus
Asian shares slipped on Thursday after losses on Wall Street but trade was subdued as investors awaited business surveys in Europe and largely stayed on the sidelines ahead of the long Easter weekend holiday. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.2 percent, reversing course after brushing its highest since late July 2018 early in the trading session. Australian shares held steady while Japan’s Nikkei was down nearly half a percent and Chinese blue chips dipped 0.3 percent. Wall Street shares drifted lower on Wednesday, with the S&P 500 giving up 0.2 percent as a drop in healthcare equities outweighed upbeat economic data from the United States and China.
ICMA, TDAP jointly host conversation
Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan) and the Trade Development Authority of Pakistan jointly hosted ‘Textile Leadership Conversation 2019’ on the occasion of TEXPO 2019. Minister of Commerce and Advisor to PM on Commerce, Textile, Industry, Production and Investment, Abdul Razak Dawood graced the occasion as chief guest. President ICMA Pakistan, Ziaul Mustafa, thanked Dawood for his presence at Textile Leadership Conversation and shared that management accountants are playing a pivotal role in the economic development of Pakistan through their contribution to the business community and regulatory regime.
ECC approves Rs5 billion sovereign guarantee for USC
The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved sovereign guarantee of Rs5 billion for the Utility Stores Corporation (USC) from National Bank of Pakistan to run its affairs. The meeting of the ECC of the Cabinet was held here with Finance Minister Asad Umar in the chair. Industries and Production Division gave a presentation to update the Committee about status of Ramzan Package. The Committee directed USC to expedite the procurement of essential consumer items so as to provide timely relief to the people in holy month of Ramazan.
Tax amnesty scheme approval deferred again for further deliberations by cabinet
The federal cabinet on Wednesday again deferred the approval of the much-awaited tax amnesty scheme because some of its provisions require "further fine-tuning", Information Minister Fawad Chaudhry announced. Prime Minister Imran Khan had convened a special meeting of the cabinet today after some of the ministers opposed the amnesty plan, expressed their reservations and sought further clarification at Tuesday's cabinet meeting. Chaudhry tweeted that the cabinet today deliberated on all aspects of the proposed Assets Declaration and Amnesty Scheme, 2019, and that all options "came under threadbare discussion". "It is decided that some provisions [of the scheme] need further fine-tuning," the minister said, adding that the matter would be taken up again at the next cabinet meeting. Insider sources had told Dawn on Tuesday that some cabinet members objected to the 15 per cent tax rate proposed under the scheme and some raised questions about its effectiveness.
20 'suspicious' banks accounts attached on request of Federal Board of Revenue
A local court in Karachi on Wednesday ordered the attachment of 20 bank accounts suspected of having been used in three cases involving the illicit transfer of foreign exchange, money laundering and benami accounts. Acting on an application submitted by the Federal Bureau of Revenue (FBR) Karachi, the court ordered that the accounts be attached for a period of 30 days. According to the application, the bureau fears that money will be withdrawn from these accounts, which FBR said had already conducted transactions "worth billions of rupees". It said that in order to secure national revenue, the bank accounts in all three cases should be attached. The attached bank accounts include those belonging to a family from Karachi — Pervez Ali, his daughters Sara and Anum, and son Jibran — who had transferred over $400,000 abroad. A case has been registered against them.

DGKC, ASL, SNGP, FFL and NML would try to lead the positive momentum on intraday basis, while BOP, ENGRO, EFOODS, PSO and ATRL would remain in laggards.

The Benchmark KSE100 index have generated an evening star in response of previous morning star on daily chart which reversed the market sentiment and momentum and daily momentum have once again changed its direction towards bearish side. As of now it's expected that index would try to take a spike initially during current trading session and would try to retest 37,000 points because hourly momentum indicators have generated bullish crossovers yesterday on last trading hour. But it depends completely either index would succeed in closing above 37,000 points or not on hourly basis, if it would not succeed in first half then it would continue its bearish rally after a spike towards 36,430 and 36,200 points which may lead towards a new low at 35,800 in case of expansion while on flip side index would face resistances at 37,000, 37,300 and 37,500 points in case of reversal. It's recommended to stay cautious on long positions and post strict stop loss because in index would succeed in penetration below 36,500 points then a new low could be witnessed.