PSX Daily Market Review - 20th March 2019

Trading volume at PSX floor dropped by 28.73 million shares or 28.86% on DoD basis, whereas the benchmark KSE100 index opened at 38,913.36, posted a day high of 39,011.54 and a day low of 38,528.11 points during last trading session while session suspended at 38,612.37 with net change of -239.58 points and net trading volume of 54.80 million shares. Daily trading volume of KSE100 listed companies dropped by 20.01 million shares or 26.75% on DoD basis.
Foreign Investors remained in net selling positions of 0.78 million shares and net value of foreign inflow dropped by 0.16 US Dollars. Categorically, Foreign Corporate and Overseas Pakistanis remained in net selling positions of 0.09 and 0.69 million shares. While on the other side Local Companies, Banks, NBFCs and Brokers remained in net selling positions of 4.29, 0.18, 0.10 and 1.43 million shares respectively but Local Individuals, Mutual Fund and Insurance Companies remained in net buying positions of 2.07, 0.04 and 5.27 million shares respectively.

Asian shares slip from 6-month high ahead of Fed policy decision
Asian shares slipped from six-month highs on Wednesday as investors took profits ahead of a policy decision by the U.S. Federal Reserve which is expected to shed more light on its interest rate plans for the rest of the year. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.4 percent, led by losses in Australia and South Korea. Japan’s Nikkei was little changed while mainland Chinese shares fell 0.5 percent. Wall Street shares were narrowly mixed on Tuesday, with the S&P 500 losing 0.01 percent and the Nasdaq adding 0.12 percent.
SEZ in federal capital delayed due to non-availability of land: BoI
The Special Economic Zone (SEZ) in the federal capital has been delayed owing to non-availability of required 50 acres of land in the city. The National Industrial Parks (NIP), a development and a management company, is all set to develop the planned SEZ in Islamabad but the project’s progress is stagnant due to non-availability of the required land, a senior official of Board of Investment (BOI) told APP here on Tuesday. He said earlier there was also a proposal to initiate the Information Technology (IT) zone to achieve the same objective for industrial growth in Islamabad but the suggestion was rejected by the authorities. The official said it was a priority of the government to build a SEZ in the federal capital along with three other SEZs including Hattar (Haripur), Faisalabad and Rashakai (Nowshera) for facilitating international and local investors in the country.
Govt working to set up specific department for poverty alleviation: Asad
Finance Minister Asad Umar on Tuesday said that incumbent government is committed to strengthening the parliament and the institutions involved in accountability. He said that there is a need to further open up the economy and make it more transparent. The incumbent government had taken several steps to bring reforms in the FBR, he said while talking to media.
ADB deploys new financing instrument to support urban development
The Asian Development Bank (ADB) has approved $9 million in Project Readiness Financing (PRF) to support the preparation and design of urban sector projects in Khyber Pakhtunkhwa, which will support the government in accelerating the delivery of infrastructure in the province, according to a press release issued on Tuesday. This is the first project approved under PRF in the region, which is part of a new set of financing instruments approved by the ADB’s board of directors to help deliver projects in a more responsive manner. As per the details shared, the PRF features simplified documentation and supports project preparation and engineering design activities, reducing both overall time and cost to borrowers.
Govt believes $11bn stashed abroad by Pakistanis
TThe Imran Khan government believes that the Pakistani nationals having more than 152,500 offshore bank accounts could have stashed away a hefty sum of $11 billion, half of which is presumed to have never been declared by them, out of the country. “…the number (of offshore accounts) is mind-boggling. So is the amount involved and the names of account holders,” Hammad Azhar, the Minister of State for Revenue, told businessmen at the Lahore Chamber of Commerce and Industry (LCCI) here on Monday.

The Benchmark KSE100 Index have bounced back after completing 61.8% correction of its last bullish recovery during last trading session and have formatted a bullish engulfing pattern on daily chart. As of now it’s expected that index would try to continue its bullish reversal above 39,053 points and this rally would initially continue towards 39,300 and then 39,500 points but index would remain under pressure until it succeed in closing above 39,500 points where a strong horizontal resistant region would try to cap current pull back. It’s recommended to start buying on dip with strict stop loss and continue adding long positions above 39,053 if index would succeed in closing above 39,000 points on hourly basis. On flip side index would find supportive regions at 38,360 and 38,000 points in case of any pressure from bears.
Categorically, FCCL would face its initial resistance at 21.10 Rs, MLCF have succeeded in closing above its initial resistance of 40.50 Rs but now it’s still capped by a strong resistant region between 42.60-43.00 Rs. DGKC, PSO and ATRL would face initial resistances at 90, 222 and 118 Rs respectively but ATRL’s penetration above 118 would call for 123 in coming days.