PSX Daily Market Review - 20th May 2019

Trading volume at PSX floor dropped by 18.21 million shares or 16.77% on DoD basis, whereas the benchmark KSE100 index opened at 33933.67, posted a day high of 33,944.16 and a day low of 33,005.99 points during last trading session while session suspended at 33,166.62 with net change of -804.5 points and net trading volume of 63.32 million shares. Daily trading volume of KSE100 listed companies dropped by 21.76 million shares or 25.58% on DoD basis.
Foreign Investors remained in net buying positions of 6.98 million shares and net value of Foreign Inflow increased by 6.75 million US Dollars. Categorically, Foreign Individuals and Corporate Investors remained in net buying positions of 0.17 and 7.75 million shares but Overseas Pakistanis remained in net selling positions of 0.94 million shares. While on the other side Local Individuals, Companies, Banks and NBFCs remained in net buying positions of 0.2, 6.76, 1.67 and 0.08 million shares respectively but Mutual Funds, Brokers and Insurances Companies remained in net selling positions of 6.13, 9.53 and 0.95 million shares.

Asian shares steady after steep losses; Saudi comments lift oil
Share markets in Asia got off to a steady start on Monday as investors tried to catch their breath following another week of escalating trade tensions between the United States and China. In early trade, MSCI’s broadest index of Asia-Pacific shares outside Japan tacked on 0.6% after a steep 3% loss the previous week. U.S. S&P 500 e-mini futures also turned higher, rising 0.5% following losses on Wall Street on Friday. The Dow Jones Industrial Average fell 0.38%, the S&P 500 lost 0.58% and the Nasdaq Composite dropped 1.04%. Australian shares jumped 1.4% after the center-right Liberal National Coalition pulled off a shock win in federal elections, beating the left-wing Labor Party.
Free fall of exchange rate not to be allowed: SBP governor
The State Bank of Pakistan (SBP) Governor Reza Baqir has assured the businessmen that the free fall of exchange rate would not be allowed. “The SBP is all set to jack up discount rates today (Monday) as the Monetary Policy Committee (MPC) is scheduled to hold its meeting,” the sources, who attended a meeting, said.
GDP growth to remain in 2.4-2.7% range for FY19
The real economy is sliding day by day. Recent statistics of large-scale manufacturing (LSM) index from July 2018 to March 2019 have shown a negative growth of 3%. The news from the agriculture sector is not encouraging either. Similarly, the performance of the services sector will remain subdued. Based on these statistics, the real gross domestic product (GDP) growth for FY19 will remain in the range of 2.4% to 2.7%.
APG raises questions over efforts against terror financing
Pakistan faced harsh questioning on effectiveness of its efforts against money laundering and terror financing at the “face-to-face meeting” of the Asia-Pacific Group (APG) on money laundering, a regional affiliate of the Financial Action Task Force (FATF). A 10-member delegation led by Finance Secretary Mohammad Younas Dagha represented Pakistan at the two-day APG meeting in Guangzhou, China. It briefed the group about the country’s updated actions against currency smuggling, proscribed organisations and tightening of financial and corporate sector systems and operational effectiveness.
No oil, gas reserves found off Pakistan shore
The 17th attempt to find hydrocarbons off the shore of Pakistan has been futile as no oil and gas reserves have been found. Around four months ago, Italian firm ENI, the operator of the Kekra-1 offshore block, started drilling in a joint venture with US firm ExxonMobil, one of the world’s largest oil and gas firm, and the Pakistan state-owned Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL). Each of the four firms has a 25% participating interest in the block. “No reserves were discovered after drilling up to over 5,000 metres,” a senior government official told The Express Tribune.

ATRL, MLCF, DGKC, ISL and PAEL would try to lead the positive momentum.

The Benchmark KSE100 Index have touched its major supportive region of 33,000 points during last trading session and got support at that region, As of now it's expected that index would try to take spike during current trading session because hourly momentum indicators are ready for a pull back and expectations of a daily bullish engulfing are still intact and if index would succeed in doing so then a major trend shift would be witnessed in coming days. It's expected that index would try to pull back towards 34,100 & 34,500 points if it would succeed in maintaining above 32,600 points during current trading session. It's recommended to start buying on dip with strict stop loss at 32,600 points.