PSX Daily Market Review - 21st March 2019

Trading volume at PSX floor increased by 12.27 million shares or 17.34% on DoD basis, whereas the benchmark KSE100 index opened at 38,600.56, posted a day high of 38,666.55 and a day low of 38,427.64 points during last trading session while session suspended at 38,547.76 with net change of -64.61 points and net trading volume of 56.16 million shares. Daily trading volume of KSE100 listed companies increased by 1.37 million shares or 2.49% on DoD basis.
Foreign Investors remained in net buying positions of 3.33 million shares and net value of foreign inflow increased by 2.96 US Dollars. Categorically, Foreign Individuals, Corporate and Overseas Pakistanis remained in net buying positions of 0.03, 1.87 and 1.43 million shares. While on the other side Local Individuals, Banks, NBFCs and Mutual Fund remained in net buying positions of 4.55, 1.74, 0.97 and 0.43 million shares respectively but Local Companies, Brokers and Insurance Companies remained in net selling positions of 7.87, 0.14 and 0.82 million shares respectively.

Economy in bad shape, no option of subsidies: Razak
Adviser to Prime Minister on Commerce, Textile, Industry and Production and Investment Abdul Razak Dawood has said that the economy is in a bad shape due to ill-planning and ill-conceived policies of past government, therefore there is no option of subsidies.
FBR issues instructions for measures introduced in Finance Supplementary Act
The Federal Board of Revenue (FBR) on Wednesday notified the details related to the measures introduced in the Sales Tax Act, 1990 and Federal Excise Act, 2005 through the Finance Supplementary (Second Amendment) Act, 2019. The bonds will entail a simple profit at 10 per cent per annum and the instrument will be traded in the security market. In order to discourage imports of vehicles, the duty on the imported vehicles of 1800cc to 3000cc has been enhanced to 25pc by amending the First Schedule of the Federal Excise Duty (FED) Act, 2005 whereas the rates on imported motor cars, sports-utility vehicles (SUVs) and other vehicles of 3000cc or above cylinder capacity, barring vehicles as designed for the transport of 10 or more persons, has been enhanced to 30pc ad valorem. On the other hand, FED on locally manufactured cars and SUVs with engine capacity of and above 1700cc has been set at 10pc. .
ECC approves Rs17.5 billion supplementary budget
The government on Wednesday approved Rs17.5 billion supplementary budget for largely meeting expenditures of legislators and temporarily displaced persons including Rs400 million for maintaining an aircraft being used by Prime Minister Imran Khan. The Economic Coordination Committee (ECC) of the Cabinet also approved higher hydel profit for Azad Jammu and Kashmir (AJK) government that will provide Rs10 billion additional income to the region. But it will result into 11 paisa increase in the electricity prices. The ECC also approved, in principle, to freeze Rs96 billion payments that the cash-starved Pakistan International Airlines (PIA) owed to Civil Aviation Authority (CAA).
Fauji Fertiliser increases urea prices by Rs80 per bag
On the back of expected increase in demand in the upcoming Kharif sowing season amid low inventory, Fauji Fertiliser Company has increased urea prices. “As per our channel checks, Fauji Fertiliser Company has increased urea prices by Rs80 to Rs1,820 per bag,” said AKD Securities. “The price increase comes on the back of expected pickup in demand in the upcoming Kharif season amid low inventory levels.” .
ECC defers PIA’s Rs96bln payables to CAA
Government on Wednesday allowed state-owned ailing Pakistan International Airlines (PIA) to temporarily hold up around Rs96 billion in payments the airline owe to the Civil Aviation Authority (CAA) on account of aeronautical charges and other levies, sources said on Wednesday.

The Benchmark KSE100 index is caged between a triangle on hourly chart therefore a volatile trading session could be witnessed today. As of now index would find supportive regions at 38,300 and 37,860 points while on flipside it would face resistance at 39,000 and 39,465 points. It’s recommended to adopt swing trading for current trading session until index closes either above 39,000 points or below 37,860 points. Daily and hourly momentum indicators are still in bullish mode and would try to provide some fresh volume in market by supporting positive sentiment. But weekly momentum indicators are not being succeeded in generating bullish crossovers and these would need a weekly closing above 39,000 points.