PSX Daily Market Review - 18th Sep 2019

Trading volume at PSX floor increased by 17.41 million shares or 16.64% on DoD basis, whereas the benchmark KSE100 index opened at 31,928.55, posted a day high of 32,106.19 and a day low of 31,769.98 points during last trading session while session suspended at 31,908.92 points with net change of -19.63 points and net trading volume of 104.6 million shares. Daily trading volume of KSE100 listed companies increased by 22.92million shares or 28.06% on DoD basis.
Foreign Investors remained in net selling positions of 2.17 million shares but net value of Foreign Inflow increased by 1.62 million US Dollars. Categorically, Foreign Individual, Corporate and Overseas Pakistani Investors remained in selling positions of 0.09, 0.07 and 2.01 million shares respectively. While on the other side Local individuals, and banks remained in net long positions of 3.95 and 3.21 million shares but Local companies, NBFCs, Mutual Funds, Brokers and Insurance Companies remained in net selling positions of 1.76, 0.55, 0.32, 0.06 and 1.28 million shares respectively.

Oil steps back on Saudi supply reassurance, focus shifts to Fed
Oil prices cooled on Wednesday as Saudi Arabia said full oil production would be restored by month’s end while caution ahead of an expected U.S. interest rate cut kept wider financial markets in tight ranges. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.13 % while Japan’s Nikkei was flat. Wall Street shares ticked up a tad on Tuesday with the S&P 500 gaining 0.26%. Brent crude futures dipped 0.1% to $64.50 a barrel, having conceded more than 60% of their gains made after the weekend attack on Saudi oil facilities. U.S. West Texas Intermediate (WTI) crude lost 0.5% to $59.06 per barrel, compared to four-month peak of $68.38 marked on Monday.
Govt to focus on diversification of export products: Dawood
Adviser to the Prime Minister on Commerce, Textile, Industries and Investment Abdul Razak Dawood on Tuesday underlined that the current government was focusing on the diversification of export products through policy intervention by providing technical and financial support. Adviser to PM on Commerce, Abdul Razak Dawood said this in meeting with delegation of the honey producers and exporters. Pakistan is home to some of the most diverse flora and fauna and produces 20 types of honey due to its varied ecological and climatic conditions, said a press release issued by Ministry of Commerce. The honey exports were far below than the real potential especially to the high-end markets, he added.
OGDCL strikes oil, gas discovery in Kohat
Oil and Gas Development Company (OGDCL) Tuesday announced to strike oil and gas discovery at its Chanda Well-05 in Kohat district of Khyber Pakhtunkhwa province. According to a preliminary test, the well could produce 76 Barrel per Day (BPD) crude oil and 0.512 Million Standard Cubic Feet per Day (MMSCFD) gas. “This is the first discovery of crude oil and gas from Wargal Formation in Chanda Oil Field,” an OGDCL press release said. The Well-05 was drilled 5,440 meters deep and tested using the OGDCL’s in house expertise.
LPG production to be made mandatory at all natural gas fields
The Petroleum Division is in process of finalising a new Liquefied Petroleum Gas (LPG) policy, under which the commodity production would be mandatory from all existing natural gas producing fields, to meet the increasing demand and ensure its availability at controlled price throughout the year especially during the winter season.“A new LPG policy has almost been finalised, which will be announced in the coming weeks. Under this policy, the LPG production will be mandatory from all operational gas fields across the country to meet its increased demand and curtail the import,” a senior official privy to the petroleum sector developments told APP. He said the production from LPG’s existing plants, installed at different fields, would be streamlined, however, a period of one to two years would be required to set up new plants at the fields where the facility was not available.
RIMS Reports Rs3.95b sales tax from restaurants
Punjab Information Technology Board (PITB) rolled out the Restaurant Invoice Monitoring System (RIMS) in Lahore & Faisalabad for the Punjab Revenue Authority in September 2015, which is helping to get food businesses registered with the tax authorities. Recently it has received encouraging response by reporting sales tax nearly Rs3.95 billion and 23.9 million invoices from different restaurants of the two major cities of Punjab province. Getting people to pay their taxes is an insurmountable task. The Punjab Information Technology Board (PITB) came up with a unique and significant way to enhance the number of taxpayers in Lahore, Faisalabad and now in Rawalpindi. RIMS is now being extended to the other Divisions of the Punjab Province.

The Benchmark KSE100 index have got resistance from a horizontal resistant region during last trading session and it's expected that index would start a downward dip today which may continue towards 31,500 and 31,200 points and there are chances of formation of a daily evening shooting star if index would succeed in penetration below 31,700 points on daily basis. Therefore it's recommended to stay cautious and start selling on strength until index would succeed in closing above 32.500 points.

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