PSX Daily Market Review - 1st July 2019

Trading volume at PSX floor increased by 78.89 million shares or 58.43% on DoD basis, whereas the benchmark KSE100 index opened at 33,776.38, posted a day high of 33,936.23 and a day low of 33,409.50 points during last trading session while session suspended at 33,901.58 points with net change of 127.16 points and net trading volume of 149.24 million shares. Daily trading volume of KSE100 listed companies increased by 37.51 million shares or 33.57% on DoD basis.
Foreign Investors remained in net selling positions of 10.88 million shares and net value of Foreign Inflow dropped by 0.92 million US Dollars. Categorically, Foreign Individual remained in net buying positions of 1.66 million shares but Foreign Corporate and Overseas Pakistani investors remained in net selling positions of 6.95 and 5.60 million shares. While on the other side Local Individuals, Local Companies, Mutual Fund and Brokers remained in net selling positions of 47.53, 2.00, 1.42 and 21.65 million shares respectively but Banks, NBFCs and Insurance Companies remained in net buying positions of 80.90, 0.01 and 3.51 million shares.

Stocks relieved at trade truce, bonds step back
Stocks rallied and bonds retreated in Asia on Monday as a thaw in the Sino-U.S. trade dispute averted one threat to the global economy, leading investors to pare wagers on aggressive policy easing by the major central banks. The dollar firmed modestly on the safe-haven yen as Treasury yields rose and futures reined in bets for a half-point rate cut from the U.S. Federal Reserve this month. “The Trump-Xi G20 meeting looks to be a modest win for China and a positive for risk assets short term, but well within the range of expected outcomes,” said Westpac economist Richard Franulovich. “Fed cut expectations are likely to see a sustained trimming, though more so for their meeting on July 31 than over the next year,” he added. “A 50 basis point rate cut seems very unlikely.”
Din Group to invest $70m in Industrial City
Din Group of Indusy, a leading group in textile sector, committed to investing $70 million in Allama Iqbal Industrial City as an agreement has been signed with Faisalabad Industrial Estate Development and Management Company (FIEDMC) in this regard. Shedding light on the agreement, FIEDMC Chairman Mian Kashif Ashfaq said Din Group of Industries is the biggest name in textile sector and products manufactured by this group are popular across the globe. He said Din Group would set up a new unit in Allama Iqbal Industrial City on a land consisted of 125 acres. He said as per government policy, Din Group would also be entitled for tax holiday and one time import of machinery without paying any levy.
Finance Bill 2019-20: Budget passed despite opposition resistance
The National Assembly (NA) on Friday passed the Finance Bill 2019, giving legal effect to the budgetary proposals for the next fiscal year 2019-2020 amid voices of ‘No No’ and protest from the opposition benches upon rejection of all their amendments. Treasury and the opposition members shouted slogans against each other other during the proceedings.
Asset Declaration Scheme deadline extended to July 3: Hafeez Shaikh
Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh during a post-budget press conference on Sunday said that the government had decided to extend the deadline for its Asset Declaration Scheme to July 3. "There's been a lot of interest in the Asset Declaration Scheme," he said, adding that the deadline had been extended to banking office hours on July 3. "We are giving people a final opportunity [to take advantage of the scheme] in case some people are still in the process or are facing difficulties wrapping it up," he said. "After that, the benami commission, that we're currently establishing to pursue benami properties, will come into action," Shaikh said. Minister of State for Revenue Hammad Azhar, who was also at the briefing, said that thousands of people had availed the scheme so far. "We'll put forth the details of this scheme in a few days," he said.
Petroleum prices to stay unchanged
Petroleum prices will remain unchanged for the month of July as the government has made adjustments in tax rates, according to an official announcement. The decision was taken to provide relief to the consumers, said a statement issued by the finance ministry. It said the government had decided not to increase the prices of petroleum products for July 2019. However, the Federal Board of Revenue (FBR) earlier during the day issued a notification increasing the General Sales Tax (GST) on petrol and high-speed diesel (HSD) from 13pc to 17pc to absorb requirement for a price cut. The crude price in the international market had come down from April’s $72 per barrel to $64 per barrel on June 28.

The Benchmark KSE100 index is not being able to maintain its supportive region since start of this week and bears are trying to dominate in market, as of now it's expected that index would try to pull back during current trading session because hourly stochastic have generated a bullish crossover and index is trying to maintain above 33,500 points since last two trading sessions. It's recommended to stay cautious and start buying in chunks with strict stop loss and if index would not succeed in maintaining above 33,400 points then a dip towards 32,960 points could be witnessed therefore trading with trailing stop loss is recommended.
As of now PSO would try to start a pull back before 162 Rs./share because at that region it would try to find a support from a horizontal supportive region, while ATRL would try to continue its bullish pull back because daily momentum indicators of this script have changed its direction which may lead it towards 79 and 83 Rs./share. DGKC and MLCF also would try to start a pull back before 53.30 and 22.30 Rs/share respectively therefore it's recommended to start buying on dips.