Previous Session Recap
Trading volume at PSX floor dropped by 114.30 million shares or 41.76% on DoD basis, whereas the benchmark KSE100 index opened at 38,815.24, posted a day high of 39,149.33 and a day low of 38,558.45 points during last trading session while session suspended at 39,054.60 with net change of 361.91 points and net trading volume of 102.34 million shares. Daily trading volume of KSE100 listed companies dropped by 76.56 million shares or 42.80% on DoD basis.
Foreign Investors remained in net buying positions of 2.77 million shares and net value of Foreign Inflow increased by 0.21 million US Dollars. Categorically, Foreign Individuals, Corporate and Overseas Pakistani Investors remained in net buying positions of 0.02, 1.40 and 1.37 million shares respectively. While on the other side Local Individuals, Companies and Brokers remained in net buying positions of 5.19, 0.73 and 2.63 million shares but Banks, NBFCs, Mutual Fund and Insurance Companies remained in net selling positions of 1.68, 0.36, 7.10 and 2.20 million shares respectively.
Analytical Review
Asian shares up after MSCI announces China weighting boost
Asian shares rose on Friday, driven by a rally in Chinese markets after index publisher MSCI announced it would boost the proportion of mainland shares in its global benchmarks, while strong U.S. economic data helped the dollar higher.Chinese shares rallied, with the blue-chip CSI300 index adding 1.2 percent after MSCI said it would quadruple the weighting of mainland shares in its global benchmarks later this year, potentially drawing more than $80 billion of fresh foreign inflows to the world’s second-biggest economy. That, along with strength in other markets in the region, helped push MSCI’s broadest index of Asia-Pacific shares outside Japan up more than 0.3 percent.
Iran eager to import meat, livestock from Pakistan: envoy
Pakistan and Iran on Thursday discussed matters relating to enhance relations in the field of agriculture between the two countries. The matter came under discussion when Mehdi Honardoost, Ambassador of the Islamic Republic of Iran called on Minister for National Food Security and Research Sahibzada Mehboob Sultan in Islamabad Thursday.
Singapore Business delegation expresses keen to invest in Pakistan
Lawmakers express concern over rise in fiscal deficit
As the lawmakers expressed serious concern over an unusual increase in fiscal deficit and a rare decline in revenue collection in the first half of the current fiscal year despite a major cut in development spending, the government on Wednesday disclosed plans to introduce research-based taxation for at least six sectors of high revenue potential in the coming budget. This was the crux of a meeting of the National Assembly’s Standing Committee on Finance and Revenue presided over by its chairman Faizullah of the ruling Pakistan Tehreek-i-Insaf.
Govt revives blocked renewable energy projects
The government on Wednesday decided to allow partial revival of renewable energy projects blocked in March last year by the PML-N government subject to a revised tariff mechanism and greater decisive role to National Transmission and Despatch Company (NTDC) to provide interconnection facility. It also provided an opportunity to the Sindh government to provide interconnection grid facility for renewable projects (RE) projects that it had issued letters of interest (LoI) but were affected by the government’s decision of March 2018.
Asian shares rose on Friday, driven by a rally in Chinese markets after index publisher MSCI announced it would boost the proportion of mainland shares in its global benchmarks, while strong U.S. economic data helped the dollar higher.Chinese shares rallied, with the blue-chip CSI300 index adding 1.2 percent after MSCI said it would quadruple the weighting of mainland shares in its global benchmarks later this year, potentially drawing more than $80 billion of fresh foreign inflows to the world’s second-biggest economy. That, along with strength in other markets in the region, helped push MSCI’s broadest index of Asia-Pacific shares outside Japan up more than 0.3 percent.
Pakistan and Iran on Thursday discussed matters relating to enhance relations in the field of agriculture between the two countries. The matter came under discussion when Mehdi Honardoost, Ambassador of the Islamic Republic of Iran called on Minister for National Food Security and Research Sahibzada Mehboob Sultan in Islamabad Thursday.
As the lawmakers expressed serious concern over an unusual increase in fiscal deficit and a rare decline in revenue collection in the first half of the current fiscal year despite a major cut in development spending, the government on Wednesday disclosed plans to introduce research-based taxation for at least six sectors of high revenue potential in the coming budget. This was the crux of a meeting of the National Assembly’s Standing Committee on Finance and Revenue presided over by its chairman Faizullah of the ruling Pakistan Tehreek-i-Insaf.
The government on Wednesday decided to allow partial revival of renewable energy projects blocked in March last year by the PML-N government subject to a revised tariff mechanism and greater decisive role to National Transmission and Despatch Company (NTDC) to provide interconnection facility. It also provided an opportunity to the Sindh government to provide interconnection grid facility for renewable projects (RE) projects that it had issued letters of interest (LoI) but were affected by the government’s decision of March 2018.
Market is expected to remain volatile during current trading session therefore it's recommended to stay cautious while trading
Technical Analysis
The Benchmark KSE100 Index have continued its reversal during last trading session and have created a morning star on daily chart but fears of a bearish correction have prevailed as index is still trading below 39,500 points and this fear would prevail until index would close above 39,660 points. As of now daily momentum indicators are ready for a bullish crossover and if index would succeed in penetration above 39,500 points then these indicators would get strength and a hammer would be formatted on a weekly chart. It’s recommended to stay cautious because short and mid-term sentiments have changed to bearish side and today’s closing would add final verdict to market sentiment. It’s recommended to adopt swing trading strategy during current trading session.
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