PSX Daily Market Review - 18th Nov 2019

Trading volume at PSX floor increased by 32.67 million shares or 9.71% on DoD basis, whereas the benchmark KSE100 index opened at 37,243.20, posted a day high of 37,634.75 and a day low of 37,225.61 points during last trading session while session suspended at 37,583.89 points with net change of 340.69 points and net trading volume of 196.15 million shares. Daily trading volume of KSE100 listed companies increased by 9.43 million shares or 5.00% on DoD basis.
Foreign Investors remained in net selling positions of 4.47 million shares and net value of Foreign Inflow dropped by 0.14 million US Dollars. Categorically, Foreign Individual and Overseas Pakistanis remained in net buying positions of 0.11 and 3.22 million shares but Foreign Corporate Investors remained in net selling positions of 7.79 million shares. While on the other side Local Individuals, Companies, NBFCs, Mutual Funds and Brokers remained in net buying positions of 6.56, 7.00, 0.97, 6.66 and 11.44 million shares but Banks and Insurance Companies remained in net selling positions of 22.04 and 5.83 million shares respectively.

Asia shares tick higher as China cuts repo rate
Asian shares blipped higher on Monday after Beijing surprised markets by trimming a key interest rate for the first time since 2015, stirring speculation that more stimulus was on the way for the world’s second-largest economy.China’s central bank cut rates on seven-day reverse repurchase agreements by five basis points to 2.50%, a move that nudged the yuan higher while lowering Chinese bond yields. The news helped Shanghai blue chips recoup early losses to rise 0.3% .CSI300, though the initial reaction was cautious overall. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS also moved 0.3% higher. Japan's Nikkei .N225 added 0.38%, and was just short of its recent 13-month top. E-Mini futures for the S&P 500 ESc1 were all but flat, as were EUROSTOXX 50 futures STXEc1. Beijing’s policy move added to hopes it might also be more serious about making progress in trade talks with the United States.
New battalions being raised to curb smuggling
The government has decided to raise a set of highly technically equ­ipped battalions of paramilitary forces and customs under a multi-billion-rupee multi-pronged Border Moni­to­ring Initiative (BMI) to ch­eck cross-border smugg­ling, causing significant loss­es to the national economy. A senior government official told Dawn that Prime Min­ister Imran Khan had already approved immediate recruitment of more than 2,000 officials, besides raising two additional battalions each of Gilgit-Balti­stan Sco­uts and Pakistan Coast Gua­rds. These inductions would be made thro­ugh strict security clearance by the relevant security agencies. Pakistan Customs has been given the lead role for an initial period of two years and would be fully equipped with modern technological gadgets, logistic support, weapons, etc. The prime minister has also ordered immediate creation of a directorate general of law and prosecutions to support customs activities.
Bangladesh flies in onion supplies as price hits record high
Bangladesh is urgently importing onions by air as the price of the essential ingredient in local dishes soared to record highs, an official said on Sunday, with even the prime minister chopping the bulb from her menu. The price of onions — a sensitive subject in South Asia where shortages can trigger widespread discontent with political ramifications — has climbed to eye-watering levels in Bangladesh since neighbouring India banned exports in late September after heavy monsoon rains reduced the crop. One kilogramme of the staple vegetable usually costs 30 taka (36 US cents) but has soared to up to 260 taka after the ban was imposed. Hasina’s deputy press secretary Hasan Jahid Tusher said onions were being imported by air freight, and that “Prime Minister (Sheikh Hasina) said she has stopped using onion in dishes”.
Aramco declares $1.71 trillion valuation in blockbuster IPO
Saudi Arabia on Sunday put a value of up to $1.71 trillion on energy giant Aramco in what could be the world's biggest IPO, but missed Crown Prince Mohammed bin Salman's initial target of $2 trillion. Aramco said it would sell 1.5 per cent of the company in a blockbuster initial public offering worth at least $24 billion. "The base offer size will be 1.5 per cent of the company's outstanding shares," the state-owned energy giant said in a statement that set the price range at 30-32 Saudi riyals per share ($8-8.5). The much-delayed offering is scaled down from original plans, but it still rivals the world's biggest listing so far — the $25 billion float of Chinese retail giant Alibaba in 2014.
IMF set to approve second tranche of $450 million to Pakistan
The International Monetary Fund (IMF) would likely to approve second tranche worth of $450 million for Pakistan in next month that would increase the country’s foreign exchange reserves. The executive board of the IMF would likely to meet in early next month (December) to consider approving second tranche for Pakistan. The IMF had visited Islamabad for the first review under extended fund facility (EFF) from October 28 to November 8 wherein it showed satisfaction over the economic performance of the country. The IMF praised to authorities for over-performing on first quarter targets that has pave the disbursement of $450 million. The IMF in July this year had approved a three-year, $6 billion loan to support Pakistan’s economic plan. Pakistan had already received an upfront disbursement of $991 million on completion of all prior actions committed by Pakistan before signing the fund programme. Pakistan had already decided to fulfil one of the remaining demands of the IMF by introducing another electricity tariff hike before the executive directors of the IMF.