PSX Daily Market Review - 18th June 2019

Trading volume at PSX floor dropped by 39.74 million shares or 23.67% on DoD basis, whereas the benchmark KSE100 index opened at 35,601.39, posted a day high of 35,625.47 and a day low of 35,110.73 points during last trading session while session suspended at 35,168.82 with net change of -404.13 points and net trading volume of 87.30 million shares. Daily trading volume of KSE100 listed companies dropped by 41.72 million shares or 32.34% on DoD basis.
Foreign Investors remained in net selling positions of 1.57 million shares and net value of Foreign Inflow dropped by 2.13 million US Dollars. Categorically Foreign Individuals and Foreign Corporate remained in net selling positions of 0.005 and 6.27 million shares but Overseas Pakistani investors remained in net buying positions of 4.70 million shares. While on the other side Local Individuals, Banks and NBFCs remained in net buying positions of 10.17, 0.61 and 0.02 million shares respectively but Local Companies, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 16.04, 1.26, 2.59 and 1.40 million shares.

Asia stocks cautious before Fed, oil on defensive
Investor caution ahead of the Federal Reserve’s interest rate meeting capped Asian stocks on Tuesday, while crude oil prices retreated as global growth worries overshadowed supply concerns stemming from recent Middle East tensions. The Shanghai Composite Index lost 0.25%, Hong Kong’s Hang Seng rose 0.15% and Japan’s Nikkei dipped 0.3%. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.2%. Bucking the trend were Australian stocks, which rose 0.3% after minutes from the Reserve Bank of Australia’s (RBA) last policy meeting pointed to the possibility of another interest rate cut. The Fed, facing fresh demands by U.S. President Donald Trump to cut interest rates, begins a two-day meeting later on Tuesday. The central bank is expected to leave borrowing costs unchanged this time but possibly lay the groundwork for a rate cut later this year.
Pakistan, China agree to expedite work on Sukkur-Hyderabad Motorway
Minister for Planning, Development and Reforms Makhdum Khusro Bakhtyar and Ambassador of China Yao Jing during a meeting here on Monday agreed to expedite the work on Eastern Corridor from Sukkur to Hyderabad in BOT (Build, Operate, and Transfer) mode for its early completion. The two dignitaries expressed satisfaction over the pace of projects under China Pakistan Economic Corridor (CPEC) framework. The minister said that the incumbent government was committed to fast track the progress on this flagship project between Pakistan and China. He appreciated the Chinese leadership and government for expanding the scope of CPEC by including socio-economic and agriculture sector development under its platform.
CCoP seeks proposals regarding privatisation of PSM
The Cabinet Committee on Privatisation (CCoP) on Monday directed the Ministry of Industries and Production and Privatization Commission to submit their proposals regarding privatization of Pakistan Steel Mills in the next CCoP meeting. Adviser to the Prime Minister on Finance, Revenue and Economic Affairs, Dr Abdul Hafeez Shaikh chaired meeting of the Cabinet Committee on Privatization (CCoP), here. While presenting the report of the task force on energy reform, the Ministry of Energy briefed the Committee about the challenges being faced by the DISCOs. Various measures recommended by the task force for improving the performance of energy sector with a focus on reduction of losses and enhancing the efficiency of DISCOs were discussed during the meeting. The Committee directed the Ministry of Energy to submit proposals aimed at accelerating closure of those GENCOs that have outlived their recommended life and are running into losses.
Development of dams government’s top priority, MPs told
The Senate Standing Committee on Planning Monday asked the government to provide the break-up of Rs 65 billion allocated for relief and rehabilitation of Temporary Displaced People (TDPs) and security enhancement. The Senate Standing Committee on Planning, Development and Reforms that met with Senator Agha Shahzaib Durrani in chair also asked the details of total PSDP releases in the fiscal 2018-19. The committee reviewed details of PSDP 2019-20 and it was informed that the total federal budget for development projects is a total of Rs 912 billion. The national budget entails Rs 1863 billion. Last year total budget comprised Rs675 billion out of which 95 percent was released. Priority sectors for this year include water, transport, energy, agriculture and knowledge economy.
Forex market: SBP keeping a close eye, will intervene in case of excess volatility, governor says
State Bank of Pakistan Governor Reza Baqir at a press conference on Monday expressed confidence in the country's economic future, and provided assurance that the "two main causes of our instability are being effectively addressed in a credible manner". Baqir's press conference comes days after the budget was presented in the National Assembly. In the days leading up to and after the budget, the opposition threatened to take to the streets against rising prices to protest the impact of the Pakistan Tehreek-i-Insaf's 'austerity budget' on the people. The SBP chief, describing uncertainty as "the biggest opponent" facing the economy, stressed the need to "proceed in a way that eliminates this uncertainty, and our people get the confidence that we have in the SBP, and that I personally have in a positive future." He then went on to provide an explanation of how the government is tackling the exchange rate and inflation.

The Benchmark KSE100 Index have tried to format an evening shooting star on daily chart while during this process it got support from horizontal supportive region and it's expected that index would try to recover after a dip during current trading session, therefore it's recommended to start buying on dip and index would try to find supports at 35,000 & 34,730 points. while on flip side it would face resistances at 35,500 and 35,800 points. Daily and weekly momentum indicators are in bullish mode while hourly momentum indicators are trying to generate a bullish crossover and if these would succeed in doing so then an intraday spike would be witnessed. It's recommended to start buying on dip with strict stop loss of 34,500 points because index would remain bullish until it close below 34,500 points on daily chart.