PSX Daily Market Review - 21st May 2018

Trading volume at PSX floor increased by 25.91 million shares or 45.51% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 41,886.77, posted a day high of 41,974.35 and a day low of 41,458.12 during last trading session. The session suspended at 41,623.52 with net change of -246.13 and net trading volume of 55.39 million shares. Daily trading volume of KSE100 listed companies increased by 21.98 million shares or 65.81% on DoD basis.
Foreign Investors remained in net selling position of 6.18 million shares and net value of foreign Inflow dropped by 3.08 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistanis Investors remained in net selling positions of 2.48 and 3.69 million shares. While on the other side Local Companies, Banks, NBFCs and Insurance Companies remained in net buying positions of 172, 8.11, 0.09 and 1.40 million shares but, Mutual Fund and Brokers remained in net selling positions of 1.46 and 1.40 million shares respectively.

U.S. stock futures jump after Mnuchin says trade war 'on hold'
U.S. stock futures jumped on Monday as U.S. Treasury Secretary Steven Mnuchin said the U.S. trade war with China is “on hold” after the world’s two largest economic powers agreed to drop their tariff threats while they work on a wider trade agreement. S&P mini futures ESc1 rose 0.6 percent in early Asian trade on Monday. Investors trading Asian stocks were cautious. Japan's Nikkei .N225 ticked up 0.1 percent while MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was off 0.1 percent in early trade. Mnuchin and U.S. President Donald Trump’s top economic adviser, Larry Kudlow, said the agreement reached by Chinese and American negotiators on Saturday set up a framework for addressing trade imbalances in the future.
Lawmakers add mild amendments in Finance Act 2018
The PML-N government in its last budget agreed to introduce only 19 amendments to the Finance Act 2018, with most of them relating to income tax measures. Of all the recommendations, 12 are related to income tax measures, four to sales tax and three to federal excise duty. These amendments will come into effect from July 1. However, revised rates of excise duty on cement and cigarettes will come into effect on the next day of assent given by President Mamnoon Husain. Through the act, the excise rate on cement was further revised from Rs1.25 to Rs1.5 per kg and on all three tiers of cigarettes by Rs6. However, the health levy on tobacco at Rs10 per kg has been withdrawn through the act. In the Finance Bill 2018, government introduced 104 amendments in income tax, 33 in sales tax and federal excise duty.
Ecnec meets tomorrow to discuss seven projects
The Executive Committee of the National Economic Council (Ecnec) will meet Tuesday to consider seven projects including the 4th revised PC-I of 969 MW Neelum Jhelum Hydropower Project. The other projects to be considered by the Ecnec include Sindh Barrage Improvement Project Phase-II Rehabilitation and Modernization of Sukkur Barrage. According the agenda of the meeting available with The Nation the meeting will discuss total seven projects from energy sector, physical planning and housing sector, higher education sector, social sector and water sector. In water sector two projects are Sindh Barrage Improvement Project Phase-II Rehabilitation and Modernization of Sukkur Barrage and Neelum Jhelum Hydroelectric Project (4th Revised PC-I). The total cost of the Sindh Barrage Improvement Project Phase-II Rehabilitation and Modernization of Sukkur barrage is Rs17908.9 million including Foreign Exchange Component of Rs.2246 million.
FBR responds to Supreme Court queries regarding taxes on mobile phone top-up
The Federal Board of Revenue (FBR) on Saturday submitted in the Supreme Court of Pakistan its detailed response to the composition of taxes deducted from pre-paid top-up cards, DawnNewsTV reported. On May 8, the Supreme Court had ordered the FBR as well as federal and provincial governments to submit comprehensive replies explaining why a number of taxes, which it had noted totalled up to 42 per cent of the card's worth, were being deducted on pre-paid cellular scratch cards. Upon being told that for every cellular charge, 5.5 per cent was deducted as a withholding tax, 19pc as sales tax and another 10pc as services charges, the court had remarked: "Is this not exploitation. This is an illegal way to get money from people."
Gas consumption 20pc up in eight months
The consumption of natural and liquefied petroleum gas has witnessed around 20 percent increase during eight months of the current fiscal year (Jul-Feb) as compared to last fiscal year. "During July-Feb, average natural gas consumption stood at about 3,837 million cubic feet per day (MMCFD) including 632 MMCFD volume of Re-gassified Liquefied Natural Gas, compared to 3,205 MMCFD gas last year," official sources told APP. They said Pakistan had an extensive gas network of over 12,829 km transmission, 132,065 km distribution and 34,631 services gas pipelines to cater the requirement of more than 8.9 million consumers across the country.

The Benchmark KSE100 Index is trying to find support from crossover of two trend lines along with a horizontal line and these supportive objects would try to push index into positive zone during current trading session, therefore a positive spike could be witnessed on intraday basis. Hourly Stochastic and MAORSI also have generated bullish crossovers and these both would add support to instigate the bullish rally on intraday basis. But index would remain under pressure on short term basis because daily and weekly stochastic along with MACD are not in bullish mode and index would face strong resistances around 41,860 and 42,200 during current trading session. While 41,500 and 41,045 points regions would try to provide some ground on intraday basis. Closing below 41,500 on daily chart would lead index towards 40,900 and 40,700 points. For current trading session its recommended to wait for a spike to initiate selling on strength instead of buying on dip.