PSX Daily Market Review - 20th June 2019

Trading volume at PSX floor dropped by 4.78 million shares or 4.59% on DoD basis, whereas the benchmark KSE100 index opened at 34,673.53, posted a day high of 34,813.90 and a day low of 34,522.41 points during last trading session while session suspended at 34,656.12 with net change of -25.6 points and net trading volume of 74.20 million shares. Daily trading volume of KSE100 listed companies dropped by 7.85 million shares or 9.57% on DoD basis.
Foreign Investors remained in net buying positions of 0.83 million shares and net value of Foreign Inflow increased by 0.13 million US Dollars. Categorically Foreign Individuals and Foreign Corporate remained in net buying positions of 0.09 and 1.39 million shares but Overseas Pakistani investors remained in net selling positions of 0.64 million shares. While on the other side Local Individuals, Banks and NBFCs remained in net buying positions of 4.79, 4.62 and 0.62 million shares respectively but Local Companies, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 2.78, 2.99, 2.32 and 3.68 million shares.

Global stocks rally, bond yields plunge after Fed hints at rate cuts
A gauge of global stock markets edged near this year’s peak while benchmark U.S. Treasury yields and the dollar dropped after the Federal Reserve signaled possible interest rate cuts later this year. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2% while Japan’s Nikkei gained 0.5%. The MSCI ACWI, which incorporates readings of 49 equity markets across the world, gained 0.2%, having recovered a large part of its losses made after U.S. President Donald Trump threatened new tariffs on all of China’s imports last month. Signs that China and the United States are returning to the negotiating table after a six-week hiatus also bolstered risk sentiment. The rally in stocks comes as a host of Asian central banks are scheduled to hold policy meetings later in the day, with most expected to flag moves toward looser monetary settings.
LCCI urges traders to benefit from FBR help desk for Assets Declaration Scheme
The Lahore Chamber of Commerce & Industry has urged the business community to avail help desk facility for Asset Declaration Scheme. LCCI President Almas Hyder, Senior Vice President Khawaja Shahzad Nasir and Vice President Faheem-ur-Rehman Saigal said that the Chamber has established help desk with the objective to provide guidelines to the businessmen interested in availing this opportunity. They said that Assets Declaration Scheme 2019 was a golden opportunity that must be availed by the community. They said that any undisclosed assets, working capital, sales and expenditure acquired up to June 30, 2019 could be declared under this scheme. They said that strict rules and regulations would be implemented after June 30, 2019 therefore businessmen must avail this scheme. They said that the LCCI has always demanded broadening the tax net and lowering the tax rate to adequately meet the target of tax collection. “We expect that this scheme will go a long way in achieving the desired results. It goes without saying that tax authorities have to improve their image as well. LCCI encourages members to be tax compliant and carry out their liabilities responsibly”, the LCCI office-bearers added.
Awareness session on Assets Declaration Scheme held at RCCI
An awareness session on Assets Declaration Scheme 2019 was held at the Rawalpindi Chamber of Commerce and Industry (RCCI) here on Wednesday. Chief Commissioner Inland Revenue Dr Basheer Ullah Khan, while addressing a large number of traders in the awareness seminar, reiterated that the closing date for the Assets Declaration Scheme is 30th June 2019. He advised people intending to avail this scheme to ensure that reliable data regarding undeclared and undisclosed assets and expenditure is available with FBR before 30th.
ECC forms body to give recommendations for imposing ban on wheat export
The Economic Coordination Committee (ECC) of the Cabinet on Wednesday constituted a sub-committee to give recommendations for imposing ban on the export of wheat as proposed by the Ministry of National Food Security and Research. Adviser to Prime Minister on Finance, Revenue and Economic Affairs, Dr. Abdul Hafeez Shaikh chaired a meeting of the ECC of the Cabinet. The Committee considered various proposals of Ministries/Divisions, here. The Secretary, Ministry of National Food Security & Research updated the meeting about the availability of wheat stock in the country.
ECC takes no decision on wheat export, power rates for industry
The Eco­nomic Coordination Com­mittee (ECC) of the Cabinet on Wednesday could not take decisions on continuation of subsidised power rates to industrial sector or ban on export of wheat in order to stop the increase in the price of the commodity. The meeting, presided over by PM’s Adviser on Finance and Revenue Dr Abdul Hafeez Shaikh, agreed in principle on tax exemptions for procurement of additional ships in the country or limiting oil imports only through domestic ships, but concluded that a decision in this regard should be taken by the federal cabinet. Informed sources said that ministers were divided when the Ministry of National Food Security & Research proposed a ban on export of wheat to stop rise in the price of the commodity in local markets.

The Benchmark KSE100 index have tried to maintain its double bottom during last trading session and a doji have been formatted on daily chart on a horizontal supportive region and with this formation chances of occurrence of a morning shooting star have become evident. Hourly momentum indicators have turned their direction to bullish side and if index would succeed in penetration above 34,900 points then a daily morning star would be confirmed which may lead index towards 35,500 and 36,300 points, while on flipside index would find supports at 34,400 & 33,800 points. As of now it's recommended to start buying on dip with strict stop loss of 33,860.