PSX Daily Market Review - 20th Sep 2019

Trading volume at PSX floor increased by 37.20 million shares or 37.44% on DoD basis, whereas the benchmark KSE100 index opened at 31,534.63, posted a day high of 32,235.29 and a day low of 31,475.00 points during last trading session while session suspended at 32,184.03 points with net change of 628.56 points and net trading volume of 110.10 million shares. Daily trading volume of KSE100 listed companies increased by 35.43 million shares or 47.45% on DoD basis.
Foreign Investors remained in net selling positions of 6.70 million shares and net value of Foreign Inflow dropped by 0.86 million US Dollars. Categorically, Foreign Individual, Corporate and Overseas Pakistani Investors remained in selling positions of 3.80, 2.72 and 0.18 million shares respectively. While on the other side Local individuals, Banks, NBFCs and Brokers remained in net long positions of 4.27, 1.11, 2.52 and 7.02 million shares but Local Companies, Mutual Funds and Insurance Companies remained in net selling positions of 6.98, 0.79 and 3.21 million shares respectively.

Economy hopes support shares, oil edges up on Mideast tensions
Asian share prices inched higher on Friday as economic stimulus around the world eased fears over slowing growth, while crude oil prices climbed on concerns that last weekend’s attacks on Saudi Arabia’s oil facilities still pose supply risks. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.15% though it is on course to post its first weekly decline in five, hit by sizable losses in Hong Kong and India. Japan’s Nikkei rose 0.46% to come within striking distance of its year-to-date peak and U.S. and European shares also stood near their best levels this year. The S&P 500 ended flat on Thursday, staying than less than 1% below its closing record high hit in July, while the pan-European FTSEurofirst 300 index also came within sight of this year’s peak. Monetary easing by the U.S. Federal Reserve this week and by the European Central Bank last week underpinned investor sentiment.
Pak-Uzbek trade volume can be doubled
Bilateral trade volume can be doubled between Uzbekistan and Pakistan with joint efforts, strengthening of contacts between the businessmen of the two countries and exchange of business delegations. These views were expressed by the Mayor of the Namangan City Uzbekistan Shavkat Abdurazakov while speaking at Lahore Chamber of Commerce & Industry. Ambassador of Uzbekistan Furqat Sidiqov, LCCI Senior Vice President Khawaja Shahzad Nasir and Vice President Faheem-ur-Rehman Saigal spoke on the occasion.
Pakistan's foreign reserves rise to $15.9bn: SBP
The country's total liquid foreign reserves stood at $15.898 billion on September 13, a press release issued by the State Bank of Pakistan on Thursday said. The central bank's reserves witnessed an increase of $138 million to reach $8.6bn during the week ending September 13, the handout added. According to a breakup of the foreign reserves position provided by SBP: Foreign reserves held by the State Bank of Pakistan — $8.6bn Net foreign reserves held by commercial banks — $7.3bn Total liquid foreign reserves — $15.9bn The central bank also reported that the dollar shed 2 paisas in interbank trade and was traded at Rs156.23 as compared to the last closing at Rs156.25.
Programme off to a good start: IMF
The International Monetary Fund’s (IMF) Director Middle East and Central Asia Department Jihad Azour on Thursday suggested the government to increase length of the State Bank of Pakistan governor’s tenure from the existing three years. In a long and detailed interaction with media, the director said that in order for it to be in line with international practices, the SBP governor’s term of service should be closer to five years. He said this while elaborating on a question about the specifics of the reforms the IMF was seeking for the central bank. Other reform measures included “greater operational autonomy in law” as well as changes in the priority of the objectives set for the central bank, as well as an end to all State Bank credit to the government.
Indus Motor shuts down plant
Indus Motor Company (IMC), the maker of Toyota vehicles, has decided to shut down all production for the remaining days of September, bringing the total number of “non-production days” (NPDs) to 15 in the month due to continuing fall in demand. An IMC official, who asked not be named, said the company had already observed eight NPDs in July and 11-12 NPD in August. He said the federal excise duty (FED) of 2.5-7.5 per cent on various engine capacity cars, sky rocketing prices on account of rupee-dollar parity coupled with additional customs duty on imported parts and raw material and high interest rates had priced most of their vehicles out of the market. For September, “half of the current month is off,” the official said. Sources said the IMC plant and countrywide dealership network has piled up unsold inventory of over 3,000 vehicles. The plant is running at 50pc capacity in September. Meanwhile, a Toyota vendor confirmed to Dawn that IMC’s production would remain shut from Sept 20-30.

The Benchmark KSE100 index have generated a bullish engulfing pattern in response to an evening shooting star which have vanished impact of that bearish indicator. As of now it's expected that index would try to take spike towards 32,360 and 32,500 points. A major resistant region standing at 32,800 points would try to cap current bullish momentum therefore it's recommended to stay cautious and post trailing stop loss on existing long positions. Daily momentum indicators are in mixed mode while hourly momentum is ready for a bearish ride which may lead index for an intraday correction. Along with all this index is being capped by a rising trend and it would try to resist against any bullish sentiment.

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