PSX Daily Market Review - 20th Aug 2019

Trading volume at PSX floor increased by 37.30 million shares or 57.20% on DoD basis, whereas the benchmark KSE100 index opened at 28,779.34, posted a day high of 29,609.16 and a day low of 28,670.98 points during last trading session while session suspended at 29,562.42 points with net change of 797.79 points and net trading volume of 76.33 million shares. Daily trading volume of KSE100 listed companies increased by 22.91 million shares or 42.88% on DoD basis.
Foreign Investors remained in net selling positions of 2.02 million shares and net value of Foreign Inflow dropped by 1.31 million US Dollars. Categorically, Foreign Individuals and Foreign Corporate remained in net buying long positions of 0.05 and 0.23 million shares but Overseas Pakistan investors remained in net selling positions of 2.30 million shares. While on the other side Local Individuals, Companies, NBFCs and Brokers remained in net long positions of 13.37, 0.86, 0.01 and 2.06 million shares but Banks, Mutual Funds and Insurance Companies remained in net selling positions of 2.41, 10.12 and 2.32 million shares respectively.

Asian shares nudge higher on stimulus hopes, recession fears ease
Asian shares extended their gains on Tuesday as hopes for stimulus in major economies tempered anxiety about a global recession, boosting riskier assets and drawing money from safe-havens such as bonds and gold. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.31%, while Japan’s Nikkei rose 0.45%. The improved mood was helped by a rally on Wall Street overnight, with the S&P 500 gaining 1.21%.
‘CPEC Authority’ being set up for timely completion of projects: PM
Prime Minister Imran Khan on Monday announced that the government was forming a ‘China-Pakistan Economic Corridor Authority (CPECA)’ to ensure timely completion of corridor’s projects. Presiding over a meeting at the Prime Minister Office, PM Khan said: “To ensure uninterrupted progress on CPEC projects, CPEC Authority is being formed.” He said the CEPCA would help ensure coordination among the departments concerned. “The completion of CPEC will not only benefit Pakistan and China, but also the entire region,” the prime minister said. He said the timely completion of CPEC projects was the top-most priority of the government and CPEC was a clear example of joint efforts and partnership between Pakistan and China.
Big industry contracts 3.6pc in FY19
The large-scale manufacturing (LSM) sector shrank by 3.64 per cent in 2018-19 against the growth projection target of 8.1pc for the outgoing fiscal year, the Pakistan Bureau of Statistics (PBS) reported on Monday. In June, the last month of the outgoing fiscal year, the big industry posted a negative growth of 5.05pc on a year-on-year basis. The contraction came amid dismal performance in the food, beverages, petroleum products, pharmaceutical, non-metallic mineral products, automobiles and iron & steel sectors raising fears of big layoffs in the industrial sector. Sector-wise, production data of 11 items from Oil Companies Advisory Committee registered a negative growth of 0.53pc, whereas 36 items received from the Ministry of Industries and Production and 65 items by Provincial Bureaus of Statistics shrank by 2.83pc and 0.28pc respectively.
SBP reports 13pc decline in vegetable goods’ import
The imports of vegetable products into the country decreased by 13.20 percent during the financial year 2018-19 as compared to the corresponding period of last year, State Bank of Pakistan (SBP) reported. The vegetable product imports into the country during July-June (2018-19) were recorded at $2475.547 million against the import of $2852.307 million during July-June (2017-18), showing declined of 13.20 percent, according to SBP report. The food commodities that contributed in negatively growth included edible vegetables, import of which dip from $518.534 million last year to $412.634 million during the period under review, showing declined of 20.42 percent.
UAE business tycoon Lootah turns approver against Zardari
The accountability court of Islamabad has recalled arrest warrants for the chairman of a private bank in Pakistan, Nasser Abdulla Lootah, after the United Arab Emirates national turned approver against former president Asif Ali Zardari. The top businessman was one of the accused persons in the fake accounts case along with Faryal Talpur, Omni Group chairman Abdul Ghani Majeed and others. The court summoned him several times in the case against Mr Zardari before issuing his arrest warrants because of his absconding. Mr Lootah earlier this month recorded a statement before the National Accoun­tability Bureau and agreed to become an approver in the fake accounts case.

The Benchmark KSE100 index have succeeded in generating a bullish engulfing pattern on daily chart after getting support from a horizontal supportive region and right now daily stochastic have generated a bullish crossover on daily chart while hourly momentum indicators have changed their direction towards bullish side and it's expected that index would try to target 30,200 points where it would face a strong resistance while on flip side it would find supports at 28,700 and 28,300 points in case of any pressure. It's recommended to post trailing stop loss on existing long positions and practice caution until index close above 30,200 points initially and then above 31,700 points.