PSX Daily Market Review - 1st April 2019

Trading volume at PSX floor increased by 5.58 million shares or 4.22% on DoD basis, whereas the benchmark KSE100 index opened at 38,555.65, posted a day high of 38,733.37 and a day low of 38,483.46 points during last trading session while session suspended at 38,649.34 with net change of 96.39 points and net trading volume of 82.76 million shares. Daily trading volume of KSE100 listed companies increased by 28.42 million shares or 52.30% on DoD basis.
Foreign Investors remained in net buying positions of 2.59 million shares and net value of foreign inflow increased by 1.63 US Dollars. Categorically, Foreign Corporate and Overseas Pakistanis investors remained in net buying positions of 2.44 and 0.17 million shares but Foreign Individuals remained in net selling positions of 0.02 million shares. While on the other side Local Companies, Banks, Mutual Fund and Brokers remained in net buying positions of 5.19, 5.86, 0.88 and 4.62 million shares respectively but Local Individuals, NBFCs and Insurance Companies remained in net selling positions of 15.25, 2.59 and 0.99 million shares respectively.

Asian stocks surge on China's factory comeback, trade talks progress
Asian stocks rallied on Monday as positive Chinese factory gauges and signs of progress in Sino-U.S. trade talks supported sentiment, although another defeat for British Prime Minister Theresa May’s proposed Brexit deal added to sterling’s woes. MSCI’s broadest index of Asia-Pacific shares outside Japan added 1 percent and the Shanghai Composite Index rallied 1.7 percent. Australian stocks climbed 0.8 percent, South Korea’s KOSPI gained 1 percent and Japan’s Nikkei advanced more than 2 percent. The markets took heart after China’s official purchasing managers’ index (PMI) released on Sunday showed factory activity unexpectedly grew for the first time in four months in March..
Govt decides to set up a new Directorate General for CPEC audit
To undertake the detailed scrutiny of the multibillion dollar China Pakistan Economic Corridor projects, Auditor General of Pakistan has decided to set up a new Directorate General for Audit of CPEC. The accountability role of the Pakistan Audit Department had extensively been enhanced and various federal/provincial governments, ministries etc. were continuously sending requests for special audit of various government organizations, projects etc, said the Auditor General of Pakistan Javaid Jehangir, while addressing the officers of Pakistan Audit (PA) and Account Service (AS).
FBR crosses 1.8m figure of tax filers
The Federal Board of Revenue (FBR) has crossed the mark of 1,800,000 income tax filers for Tax year 2018 for the first time in history. An FBR statement issued here Sunday said that the board was committed to broadening the Tax base to truly make the country self-reliant. The FBR would continue with its efforts of creating awareness about the importance of paying taxes not only as a civic duty but also for the growth of the economy. The statement said that the institution was devoted to facilitating the public in helping to not only fulfill their tax obligations but also to create an enabling environment that fosters economic growth. The institution is also geared to act against those guilty of not fulfilling their tax obligations, it added.
Transport services’ exports fall by 26pc to $425 million
The exports of various transport services earned $425.639 million for the country during the first seven months of the current fiscal year (2018-19). However, as compared to the $572.050 million exports of last year, the exports of transport services during the July-January (2018-19) witnessed negative growth of 25.46 percent, according to the latest data of Pakistan Bureau of Statistics (PBS). The transport services, which contributed in negative growth included air transport services, exports of which declined by 31.81 percent, from $523.610 million last year to $357.030 million during the current year.
SBP urges govt to develop workforce for CPEC
The State Bank of Pakistan (SBP) has urged the government to take serious notice of the country’s human capital deficiency by focusing on re-skilling, digitization, and technological advancements to gain a competitive advantage in the next phase of CPEC. “CPEC is expected to generate significant avenues of employment for the domestic labor force, especially after the establishment of the proposed Special Economic Zones (SEZs). However, as this development takes shape, the job requirements would gradually become more demanding,” the second quarterly report 2018-19 on “The State of Economy” published by the SBP said.

FCCL, MLCF, DGKC, PSO and HASCOL would try lead positive momentum during current trading session.

The Benchmark KSE100 index is cage in a narrow range of 1,000 points since last two weeks and it’s not becoming able to penetrate either supportive side or resistant since then. As of now it have immediate supportive regions at 38,430 and 38,000 points respectively, last week’s closing above 38,500 points would try to pump some fresh volumes and it’s expected that index would try to take a spike towards 39,000 and 39,350 points during current week where it would face strong resistances. Daily and weekly momentum indicators are in bullish mode therefore it’s recommended to initiate long positions on dip with strict stop loss of 38,430 points during current trading session but cut & reverse strategy towards 38,040 points would be appreciated if index would succeed in sliding below this region. It’s recommended to stay cautious until index close above 39,350 points because closing above that region would change short term sentiment.
For current trading session, FCCL, MLCF & DGKC from cement sector seems getting supports from 19.63, 36.60 and 83.80 Rs/share respectively therefore intraday buying on dip with strict stop loss of given levels could be beneficial. While PSO & HASCOL from oil marketing companies would try to continue their bullish side rallies and they may find supports at 212 & 127 Rs respectively therefore buying with strict stop loss could be beneficial.