PSX Daily Market Review - 22nd Feb 2019

Trading volume at PSX floor dropped by 29.46 million shares or 22.31% on DoD basis, whereas the benchmark KSE100 index opened at 40,317.66, posted a day high of 40,416.53 and a day low of 39,882.23 points during last trading session while session suspended at 40,070.71 with net change of -208.67 points and net trading volume of 76.30 million shares. Daily trading volume of KSE100 listed companies dropped by 13.10 million shares or 14.66% on DoD basis.
Foreign Investors remained in net selling positions of 2.69 million shares but net value of Foreign Inflow increased by 0.94 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani Investors remained in net selling positions of 1.75 and 0.94 million shares respectively. While on the other side Local Companies, Banks and Brokers remained in net buying positions of 1.68, 3.12 and 0.17 million shares but Local Individuals , Mutual Funds and Insurance Companies remained in net selling positions of 0.75, 0.5 and 1.07 million shares respectively.

Asian shares tread water as investors watch trade talks
Shares in Asia were flat in early trade on Friday following a fall on Wall Street, with a deteriorating global economic outlook outweighing more signs of progress in trade talks between China and the United States. Early in the Asian trading day, MSCI’s broadest index of Asia-Pacific shares outside Japan was up less than 0.1 percent. (Graphic: Asian stock markets: tmsnrt.rs/2zpUAr4) Australian shares gained 0.5 percent and Japan’s Nikkei stock index was 0.3 percent lower. Investors continue to closely watch high-level talks between U.S. and Chinese trade negotiators in Washington, with little more than a week left before a U.S.-imposed deadline for an agreement expires, triggering higher tariffs.
Irrational trade decision by India not to affect Pakistan: Asad
Finance Minister Asad Umar on Thursday said Pakistan would not be affected by trade-related Indian irrational and unwise decision and termed it counterproductive for India itself. Talking to media persons after addressing “Pakistan Leadership Conversation 2019” moot, organized by Association of Chartered Certified Accountants (ACCA) Pakistan, he said that it was an irrational decision on part of India to raise duties on import of Pakistani products. He said that the trade of Pakistani products would not be affected by this unwise decision, rather it would eventually result in loss for India.
Budget deficit exceeds Rs1tr on higher interest payment
The PTI government has said that Pakistan’s budget deficit has increased above one trillion rupees due to the higher interest payment and increased security needs. “The slight increase in fiscal deficit for the first half of FY19 is a reflection of higher interest payments on loans taken out by previous governments and increased security needs,” said Minister of State for Revenue Hammad Azhar on his social media account. He further said that revenues have been slower than expected due to the unnecessary concessions doled out by the PML-N govt in its last budget (net -100 billion). Revenues also are lower as the PTI govt has protected the pass through of the higher oil prices to the consumers during first half.
Centre of Excellence for CPEC holds int’l conference
The Centre of Excellence for CPEC has taken an initiative to project the future labour demand on different trade levels in the upcoming CPEC SEZs for each province. The study is not restricted to estimate the number of jobs only, rather identifying the technical and vocational skill-sets required for the potential industries to be established in the SEZs are of equal emphasis. On the basis of abundant natural resources and manpower in Pakistan, the concentrating industries include iron and steel, mines and minerals, textile, petrochemicals, and agriculture etc. In this association, to highlight the role of technical and vocational institutions and to make it an inclusive effort, this conference received a diverse range of experts. The key theme of the conference was job projections of the technical and vocational workforce under CPEC’s SEZs inclusive job growth and skill gap evaluation.
UNHCR- funded pilot project completed in Swabi
The pilot project funded by UNHCR under which 900 households have been provided with productive assets and 100 other households got provided with technical and vocational training from certified institutions has been completed in Swabi district. An asset/certificates distribution ceremony was held at Barakai Camp, Swabi under the Poverty Graduation Pilot Project for Afghan Refugees and their Hosting Families, said a press statement issued here. The ceremony marked the completion of pilot project at Swabi, under which 900 households, including 273 women recipients have been provided with productive assets, while 100 households got provided with technical and vocational training from certified institutions.

The Benchmark KSE100 Index have formatted a bullish engulfing pattern on daily chart during last trading session and with completion of this formation daily momentum indicators have changed their direction towards bullish side because daily MAORSI and Stochastic have generated bullish crossovers. While on hourly chart index also have succeeded in closing above a resistant trend line which was previously trying to cap bullish sentiment therefore it’s expected that index would try to take a spike during current trading session towards 40,500 points and if it would succeed in penetration above that region on hourly basis then next target would be 40,860 points. While on flip side index would try to find supports at 40,000 and 39,580 points. If index would succeed in closing above 40,500 points till Friday then impact of previous evening shooting star would start losing its grip and bulls would try to dominate the market.