PSX Daily Market Review - 1st Feb 2019

Trading volume at PSX floor increased by 114.52 million shares or 91.61% on DoD basis, whereas the benchmark KSE100 index opened at 40,635.66, posted a day high of 40,860.79 and a day low of 40,607.12 points during last trading session while session suspended at 40,799.52 with net change of 192.4 points and net trading volume of 125.88 million shares. Daily trading volume of KSE100 listed companies increased by 71.45 million shares or 131.25% on DoD basis.
Foreign Investors remained in net selling positions of 0.29 million shares but net value of Foreign Inflow increased by 3.67 million US Dollars. Categorically, Foreign Corporate investors remained in net buying positions of 5.17 million shares but Overseas Pakistanis remained in net selling positions of 5.38 million shares. While on the other side Local Individuals remained in net buying positions of 8.06 million shares but Local Companies, Banks, Mutual Funds and Brokers remained in net selling positions of 3.45, 2.24, 1.75 and 0.28 million shares respectively.

Asian shares off four-month high as China data disappoints
Asian shares backed away from four-month highs on Friday as a dismal survey on Chinese factory activity dulled optimism about the prospects for a Sino-U.S. deal on tariffs. The Australian dollar, a liquid barometer of investor sentiment toward China, skidded 0.4 percent after the Caixin/Markit index of manufacturing fell to its lowest since February 2016. That was more downbeat than the official version of the index and inflamed fears for the economy. Investor caution is also mounting ahead of U.S. jobs data later in the session with analysts unsure what impact the government shutdown might have had employment.
SBP hikes policy rate by 25 basis points to 10.25pc
The State Bank of Pakistan Thursday increased interest rate by 25 basis points, taking it to 10.25 percent with effect from February 1, 2019. While unveiling new monetary policy in a press conference here, Governor State Bank of Pakistan (SBP) Tariq Bajwa said that the monetary policy committee (MPC) has noted that the impact of the government’s stabilization measures is gradually unfolding and the consumers’ confidence is improving amid reduced economic uncertainty. The MPC has decided to raise the interest rate by 25 basis points, he added.
AIIB okays $400m for two projects
The Asian Infrastructure Investment Bank (AIIB) has approved $400 million for two projects and is considering more than $1 billion investment in critical infrastructure projects in the transport, urban and rural water and energy sectors in Pakistan. Support of one billion dollars is for the four proposed projects while AIIB’s Board of Directors has already approved $ 100 million for the National Motorway M-4 Project and $300 million for Tarbela 5 Hydropower Extension Project, said AIIB Head of Communications Laurel Ostfield while launching the first bank report here.
MPs for ensuring release of funds for water sector projects
Senate Standing Committee on Finance here on Thursday directed the Ministry of Planning, Development and Reforms to ensure appropriate release of funds allocated for the construction of small dams and water conservation projects in Public Sector Development Programme (PSDP) for the financial year 2018-19. The committee met here with Senator Farooq Hamid Naek in the chair and discussed the recommendation on the Finance Supplementary (Second Amendment) Bill, 2019.
Punjab tax collection will be online from May 31
Tax collection of all departments in Punjab will be online by May 31 while the government is looking into all possible tax and non tax revenue generation measures besides including the private sector in the resource mobilization committee of province. The meeting was attended by the Punjab Minister for Industry, Commerce and Trade Mian Aslam Iqbal, Minister Health Dr Yasmin Rashid, President Lahore Chamber of Commerce and Industry (LCCI) Almas Hayder, Special Secretary Finance Ali Sherdil, Additional Secretray Ubaid-ur-Rehman, Chairman PRA Javeed Ahmed, Advisor Faisal Rasheed, Abdur Rehman, and other official concerned.

The Benchmark KSE100 Index have succeeded in penetration above 40,500 points after a long struggle and close at 40,799.50 points during last trading session at a very crucial stage but chances of cheat pattern are still intact because index have strong resistant region of 41,000 points ahead which fall on horizontal resistance, also index is being capped by a descending trend line of its bearish channel and said trend line would try to cap index at 40,920 points during current trading session. Index have only last day to set its next trend as this weekly closing will decide either index is going to hit 41,800 or 39,500 points. Short term trend would remain bearish until index close above 40,800 points on weekly chart and this sentiment would create volatility during current trading session. It’s recommended to trade selective items with strict stop loss on both sides until index set its clear direction.