PSX Daily Market Review - 19th June 2019

Trading volume at PSX floor dropped by 24.01 million shares or 18.73% on DoD basis, whereas the benchmark KSE100 index opened at 35,166.09, posted a day high of 35,186.09 and a day low of 34,608.61 points during last trading session while session suspended at 34,681.72 with net change of -487.1 points and net trading volume of 82.05 million shares. Daily trading volume of KSE100 listed companies dropped by 5.25 million shares or 60.1% on DoD basis.
Foreign Investors remained in net selling positions of 4.29 million shares and net value of Foreign Inflow dropped by 2.87 million US Dollars. Categorically Foreign Individuals and Foreign Corporate remained in net selling positions of 0.42 and 5.59 million shares but Overseas Pakistani investors remained in net buying positions of 1.71 million shares. While on the other side Local Individuals, Local Companies, Banks, NBFCs and Insurance Companies remained in net buying positions of 10.32, 1.70, 1.36, 0.03 and 0.70 million shares respectively but Mutual Fund and Brokers remained in net selling positions of 3.59 and 3.24 million shares.

Asian shares jump on Fed rate fever, trade war hope
Asian share markets jumped on Wednesday as investors dared to hope the Federal Reserve would follow the lead of the European Central Bank and open the door to future rate cuts at its policy meeting later in the day. Indeed, ECB President Mario Draghi’s shock turnaround on easing fueled talk of a worldwide wave of central bank stimulus, firing up stocks, bonds and commodities. Adding to the cheer was news U.S. President Donald Trump would meet with Chinese President Xi Jinping at the G20 summit later this month, and that trade talks would restart after a recent lull. MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.6% in early trade, adding to a 1% gain the day before. Japan’s Nikkei rose 1.5% and South Korea 1.1%. E-Mini futures for the S&P 500 were a fraction firmer after a upbeat Wall Street session.
Gwadar Master Plan approval linked to finalisation of policy on city uplift
Pakistan has told China that no Gwadar Smart Port City Master Plan will be approved till the finalisation of policy on the development of the city, it is learnt reliably here. The Gwadar Smart Port City Master Plan and policy should be finalized before the 9th Joint Cooperation Committee(JCC) of China Pakistan Economic Corridor, scheduled to be held in November this year, said Federal Minister for Planning, Development & Reforms Makhdum Khusro Bakhtyar Tuesday while presiding over the meeting of the Steering Committee Gwadar Smart Port City Master Plan.
CAP concerned over withdr JS Bank, MJSF collaborate
Constructors Association of Pakistan (CAP), expressing its serious concerns over withdrawing the construction sector from the final tax regime, has asked its members to study the budget 2019-20 in detail and do not participate in any tendering process till clarity of deduction of income tax percentage rate. CAP Chairman, Ch Muhammad Habib Kanwal congratulating Hammad Azhar, Minister for Revenue, for budget 2019-20, said that the construction sector plays a major role in the economic development and uplift of a country. ‘It is an important “employment generating industry” and offering job opportunities to millions of skilled and un-skilled labour forces. In fact, it is the second largest sector, after agriculture, in creating employment, he added.
Pakistan, World Bank sign loan agreement worth $918 million
Pakistan on Tuesday signed three loan agreements worth a total of $918 million with the World Bank. Adviser to the Prime Minister on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Shaikh witnessed the signing of the agreement between Country Director World Bank Patchamuthu Illangovan and Economic Affairs Division Secretary Noor Ahmed. The representatives of the Higher Education Commission (HEC) and Government of Khyber Pakhtunkhwa signed their respective project agreements. After the agreements were signed, the World Bank’s country director held a meeting with the Dr Sheikh, who thanked the World Bank "for extending their continuous support to Pakistan's government in its efforts to achieve the sustainable economic development of the country."
High-powered body to draw up economic plan
The government has formed a high-powered body also comprising military authorities to formulate development and economy-oriented policies of the country. The National Development Council (NDC) to be headed by Prime Minister Imran Khan will also have Chief of the Army Staff Gen Qamar Javed Bajwa as one of its members. The federal cabinet approved the formation of the NDC at a meeting presided over by Prime Minister Imran Khan on Tuesday. The cabinet also approved the formation of the Commission of Inquiry aimed at ascertaining how foreign debts swelled to Rs24,000 billion in the last decade during two successive governments of the Pakistan Muslim League-Nawaz (PML-N) and Pakistan Peoples Party (PPP). The commission will be headed by National Accountability Bureau (NAB) deputy chairman Hussain Asghar.

PSO, DGKC, ISL, SNGP & MLCF would try to lead the positive momentum while ENGRO and PAEL will remain under pressure.

The Benchmark KSE100 index have succeeded in sliding below its major supportive region of 35,000 points during last trading session and now the only hope for bulls will try to resist against current bearish momentum and index would try to find support at 34,400 points. Sentiment has been changed to bearish side on daily chart because momentum indicators on said timeframe have changed their direction to bearish side by generating bearish crossovers. While hourly momentum indicators would try to push index upward after a dip if index would succeed in maintaining above 34,400 on hourly bases. It’s recommended to trade cautiously with strict stop loss because a volatile session could be witnessed today. While on flip side index would face resistances at 35,000 & 35,500 in case of reversal. It’s expected that a sharp pull back would be witnessed in coming days which would try to lead index towards 35,500 and breakout above 35,500 will call for 36,300 points.