PSX Daily Market Review - 22nd April 2019

Trading volume at PSX floor dropped by 38.89 million shares or 17.99% on DoD basis, whereas the benchmark KSE100 index opened at 36,827.08, posted a day high of 37,729.12 and a day low of 36,811.86 points during last trading session while session suspended at 37,292.47 with net change of 480.61 points and net trading volume of 139.07 million shares. Daily trading volume of KSE100 listed companies dropped by 12.76 million shares or 8.40% on DoD basis.
Foreign Investors remained in net selling positions of 0.91 million shares but net value of Foreign Inflow increased by 0.59 million US Dollars. Categorically, Foreign Individuals and Overseas Pakistani remained in net selling positions of 0.02 and 2.23 million shares but Foreign Corporate investors remained in net buying positions of 1.34 million shares respectively. While on the other side Local Companies, Banks, Mutual Fund and Broker remained in net buying positions of 0.21, 1.18, 1.09 and 7.23 million shares respectively but Local Individuals, NBFCs and Insurance Companies remained in net selling positions of 5.21, 035 and 2.82 million shares respectively..

Asia stocks firm, oil hits 5-month peak on Iran sanctions report
Asian shares were steady on Monday as investors took stock of recent data suggesting global growth may be stabilizing, while oil prices spiked on a report the U.S. is likely to ask all importers of Iranian oil to end their purchases or face sanctions. Brent futures rallied to a five-month high, after the Washington Post said U.S. Secretary of State Mike Pompeo will announce “that as of May 2, the State Department will no longer grant sanctions waivers to any country that is currently importing Iranian crude or condensate.” The potential disruption to Iranian supplies are expected to add to an already tight oil market. “The U.S. chief Iran hawks indeed have the President’s ear as (Secretary of State) Pompeo and (National Security Advisor) Bolton are singularly focused on bringing Iran’s economy to its knees,” said Stephen Innes, head of trading at SPI Asset Management.
Gwadar Port Free Zone being modelled after Shekou Industrial Zone in Shenzhen, China
Gwadar Port Free Zone will be modeled after the Shekou Industrial Zone in Shenzhen, China, comprising a port, an industrial park, and residential and business areas. Once completed, the free zone will spur economic growth in Balochistan province and the rest of Pakistan, according to a report of China.org.cn. So far, more than 30 Chinese and Pakistan enterprises have moved in, with three billion yuan of direct investment, in the Gwadar Port free zone. These include hotel, bank, insurance, financial leasing, logistics, overseas warehousing, grain and oil processing, aquatic product processing, and home appliances assembly. Their yearly output value will exceed five billion yuan once they all come into operation.
Govt to go ahead with tax amnesty scheme
Despite a change of command and internal opposition, the government’s proposed amnesty scheme for asset declaration will go ahead without any major change and will come to an end before the International Monetary Fund’s bailout programme kicks in on July 1. This was the crux of a special meeting on the subject presided over by new Adviser to the Prime Minister on Finance, Dr Abdul Hafeez Shaikh, here on Sunday. It was attended by Finance Secretary Mohammad Younas Dagha, Minister of State for Revenue Hammad Azhar, Federal Board of Revenue chairman Dr Jehanzeb Khan and others.
PM sets ‘responsibilities, targets’ for new economic team
Two days after making changes in his cabinet, Prime Minister Imran Khan presided over a meeting of senior members of the Pakistan Tehreek-i-Insaf, coalition partners and newcomers in his government team at his Banigala residence on Saturday, directing them to devise a strategy to provide maximum relief to people. Briefing reporters after the meeting, the newly-appointed Special Assistant to the PM on Information Dr Firdous Ashiq Awan said Mr Khan set “targets and responsibilities” to the government’s new economic team headed by Adviser on Finance Dr Abdul Hafeez Shaikh to bring the country out of “difficulties”. She said the prime minister advised his newly-appointed adviser on finance and his economic team to come up to people’s expectations by lessening their hardships.
Seven banks told to let FIA probe 27 accounts of MQM leaders, KKF
An antiterrorism court on Saturday directed seven private banks to provide the record of 27 accounts reportedly operated by some Muttahida Qaumi Movement leaders, their relatives and its charity wing, Khidmat-i-Khalq Foundation, to the Federal Investigation Agency for investigation into a money laundering case. London-based MQM founder Altaf Hussain along with other party leaders — including former federal minister Babar Ghauri, former senator Ahmed Ali, Karachi’s former deputy mayor Arshad Vohra, Khawaja Sohail Mansoor and his brother Khawaja Rehan Mansoor — has been booked in a case pertaining to alleged money laundering. On Saturday, the ATC-II judge allowed an application filed by the FIA under Section 94 (summons to produce documents or other things) of the CrPC, seeking direction for some banks to provide the requisite record of 27 bank accounts of the KKF, its trustees as well as the suspects and their relatives.

MLCF, PPL, SEARL, DOL and EPCL would try to lead the positive momentum on intraday basis, while ENGRO, PSO, SNGP, TRG and PAEL would remain in laggards.

The Benchmark KSE100 index have tried to penetrate its major resistance of 37,700 points during last trading session but could not succeed and have bounced back after posting a double top on daily chart. But index have succeeded in creation of a morning star on daily chart before closing of said session which would try to pump some fresh air from individual investors side but still chances of occurrence of a cheat pattern are intact therefore it's recommended to stay cautious with long positions and post trailing stop loss on them because daily momentum is still bearish and to support this stance hourly momentum indicators have changed their direction towards bearish side. It's expected that index would take a dip initially during current trading session below 37,100 or 37,000 points and then a recovery could be witnessed either after completion of previous rally's correction or if index would not succeed in closing below 36,900 points. For current trading session index have supportive regions standing at 36,760 and 36,500 points while on flip side index would face resistances at 37,500 and 37,700 points. It's recommended to wait for a dip before initiating new long positions because index would enter into caution zone if it would succeed in closing below 36,900 or 36,700 points.