PSX Daily Market Review - 19th March 2019

Trading volume at PSX floor dropped by 29.93 million shares or 23.12% on DoD basis, whereas the benchmark KSE100 index opened at 38,355.84, posted a day high of 38,882.82 and a day low of 38,161.72 points during last trading session while session suspended at 38,851.95 with net change of 545.00 points and net trading volume of 74.81 million shares. Daily trading volume of KSE100 listed companies dropped by 25.56 million shares or 25.46% on DoD basis.
Foreign Investors remained in net selling positions of 2.08 million shares and net value of foreign inflow dropped by 0.26 US Dollars. Categorically, Foreign Corporate and Overseas Pakistanis remained in net selling positions of 0.08 and 2.06 million shares but Foreign Individuals Investors remained in net buying positions of 0.06 million shares. While on the other side Local Individuals, Banks, Mutual Funds and Brokers remained in net buying positions of 6.82, 0.50, 0.60 and 5.20 million shares respectively but Local Companies, NBFCs and Insurance Companies remained in net selling positions of 8.71, 0.06 and 1.36 million shares respectively.

Asian shares steady ahead of Fed meeting; May's Brexit deal in chaos
Asian shares treaded water on Tuesday ahead of a U.S. Federal Reserve policy meeting, hovering near six-month highs, while sterling was choppy as the speaker of Britain’s parliament banned another vote on same Brexit deal. MSCI’s broadest index of Asia-Pacific shares outside Japan was virtually flat, just a hair away from the highest level since Sept. 21. Japan’s Nikkei average dropped 0.5 percent, while Australian stocks eased 0.1 percent. All three major U.S. indexes rose overnight, lifted by banks and tech names, with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite adding between 0.3 and 0.4 percent each.
Textile exports stagnant despite rupee depreciation, cut in energy prices
Pakistan’s textile exports had not increased despite the fact that the government had depreciated the currency and reduced the prices of electricity and gas. The country’s textile exports had marginally enhanced by over one percent to $8.9 billion in eight months (July to February) of the ongoing fiscal year. Meanwhile, the country’s overall exports had also shown 1.9 percent growth and recorded at $15.1 billion in July to February period of the 2018-19, according to Pakistan Bureau of Statistics (PBS). The incumbent government had announced various incentives for the exports oriented sectors to boost the country’s exports. The government had depreciated the currency by around 25 percent as the dollar value had gone to Rs140.
ADB to help govt in mobilising resources for local currency bonds
The Asian Development Bank (ADB) Monday assured that it will help the government of Pakistan in mobilising required resources for local currency bonds. The assurance was made by a delegation of ADB, led by the Director General Central West Asian Department, Asian Development Bank Werner Liepach, which called on the Minister for Planning Development and Reforms Makhdom Khusru Bakhtyar here. Member infrastructure, member private sector development and competitiveness, chief macro economics and senior officials from ministry were also present in the meeting. The minister, while welcoming the delegation, lauded the role of ADB in modernizing infrastructure initiatives in Pakistan, adding that the cooperation further needed to be expanded in the education , health, water, energy and infrastructure especially in the under developed areas of the country.
Govt believes $11bn stashed abroad by Pakistanis
The Imran Khan government believes that the Pakistani nationals having more than 152,500 offshore bank accounts could have stashed away a hefty sum of $11 billion, half of which is presumed to have never been declared by them, out of the country. “…the number (of offshore accounts) is mind-boggling. So is the amount involved and the names of account holders,” Hammad Azhar, the Minister of State for Revenue, told businessmen at the Lahore Chamber of Commerce and Industry (LCCI) here on Monday.
Economy to slow further in ‘calibrated moderation’, says SBP governor
The economy is set for a “calibrated moderation” as the country seeks a bailout package from the International Monetary Fund (IMF) to avoid a hard landing, State Bank of Pakistan (SBP) Governor Tariq Bajwa said on Monday. Addressing the Pakistan Economic Forum held by Bloomberg LP, Mr Bajwa said a general agreement already exists between Pakistan and the IMF about the overall policy direction under the forthcoming bailout package. “The differences are only in the timing and pace of stabilisation policies,” he said.

The Benchmark KSE100 Index have bounced back after completing 61.8% correction of its last bullish recovery during last trading session and have formatted a bullish engulfing pattern on daily chart. As of now it’s expected that index would try to continue its bullish reversal above 39,053 points and this rally would initially continue towards 39,300 and then 39,500 points but index would remain under pressure until it succeed in closing above 39,500 points where a strong horizontal resistant region would try to cap current pull back. It’s recommended to start buying on dip with strict stop loss and continue adding long positions above 39,053 if index would succeed in closing above 39,000 points on hourly basis. On flip side index would find supportive regions at 38,360 and 38,000 points in case of any pressure from bears.
Categorically, FCCL would face its initial resistance at 21.10 Rs, MLCF have succeeded in closing above its initial resistance of 40.50 Rs but now it’s still capped by a strong resistant region between 42.60-43.00 Rs. DGKC, PSO and ATRL would face initial resistances at 90, 222 and 118 Rs respectively but ATRL’s penetration above 118 would call for 123 in coming days.