PSX Daily Market Review - 22nd May 2019

Trading volume at PSX floor dropped by 11.96 million shares or 7.23% on DoD basis, whereas the benchmark KSE100 index opened at 33,260.94, posted a day high of 33,549.62 and a day low of 32,852.23 points during last trading session while session suspended at 33,442.10 with net change of 191.56 points and net trading volume of 127.62 million shares. Daily trading volume of KSE100 listed companies dropped by 4.44 million shares or 3.36% on DoD basis.
Foreign Investors remained in net selling positions of 5.22 million shares and net value of Foreign Inflow dropped by 1.85 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistanis Investors remained in net selling positions of 5.08 and 0.18 million shares. While on the other side Local Companies, Banks, NBFCs, Mutual Fund and Insurance Companies remained in net selling positions of 6.31, 7.06, 0.11, 3.03 and 0.04 million shares respectively, but Local Individuals and Brokers remained in net buying positions of 15.18 and 6.64 million shares.

Asia stocks wobble as trade fears overshadow Huawei reprieve
Asian stocks were on shaky ground on Wednesday, as earlier relief over Washington’s temporary relaxation of curbs against China’s Huawei Technologies failed to offset deeper worries about trade frictions between the world’s two largest economies. MSCI’s broadest index of Asia-Pacific shares outside Japan initially edged up following gains on Wall Street but was last down 0.15%. Australian stocks slipped 0.25%, South Korea’s KOSPI fell 0.45% and Japan’s Nikkei edged up 0.05%. “Some in the markets will continue to cling on to hopes of the United States and China reaching an agreement at the upcoming G20 meeting,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management. “But the ongoing trade conflict looks to be a protracted one, and its potentially negative impact on various economies is becoming a running concern.”
Current account deficit narrows 27pc as imports curtailed, remittances up
Current account deficit narrowed 27 percent in first 10 months of fiscal 2019, the central bank data showed on Tuesday, as a weak rupee and sluggish economy slowed demand for imports. The country posted a current account deficit of $11.586 billion in July-April period of fiscal 2019, narrowing from a deficit of $15.864 billion a year earlier, according to the central bank data. .
Govt proposes developmental outlay of Rs 1.84 trillion for FY2019-20
The federal government has proposed the national developmental outlay of Rs 1.84 trillion for the fiscal year 2019-20, it was learnt reliably here Tuesday. According to the working paper prepared by the Planning Commission which is to be discussed in the Annual Planning Coordination Committee (APCC) meeting on Thursday, a national developmental outlay of Rs 1.84 trillion for the fiscal 2019-20 has been proposed which includes the proposed federal development outlay (PSDP) of Rs 925 billion and provincial development outlay(ADP) of Rs 912 billion, official source told The Nation. The APCC will recommend the final figure for the approval of National Economic Council (NEC).
Budget deficit jumps to record Rs1.9 trillion in just nine months
Pakistan’s budget deficit has swelled to record Rs1.9 trillion (5 percent of GDP) in just nine months due to massive increase in expenditures and shortfall in tax collection. The country’s expenditures have enhanced to Rs5.51 trillion as compared to the revenues of Rs3.58 trillion during nine months (July to March) of the current fiscal year. The budget deficit was recorded at Rs1.9 trillion (5 percent of the GDP), according to the latest data of ministry of finance. The deficit was only 4.3 percent of the GDP (Rs1.48 trillion) in the same period of previous fiscal year.
Wapda signs consultancy agreement for Mohmand Dam project
Pakistan Water and Power Development Authority (Wapda) signed a contract agreement worth Rs9.98 billion with Joint Venture namely Mohmand Dam Consultants Group (MDCG) for consultancy services for construction design, construction supervision and contract management of Mohmand Dam Hydropower Project. It is a multi-purpose project with gross water storage capacity of 1.2 million acre feet (MAF) and power generation capacity of 800 megawatt (MW). The project is scheduled to be completed in five years and eight months.

PSO, DGKC, MLCF, SNGP and ENGRO would try to lead the positive momentum while EFOODS, FFC, FFBL, MCB and FATIMA would remain in laggards.

The Benchmark KSE100 Index have strengthen its supportive region by maintaining above 32,800 points during last trading session and typically an intraday bullish correction was expanded before day end but index still have not succeed in penetration above its initial major resistant region of 33,630 points therefore it would face resistances at 33,630 and 34,000 points during current trading session while on flipside it may found supports at 33,000 and 32,800 points. It's recommended to stay cautious until index succeed in closing above 34,000 points on daily chart. Current hourly and daily momentum indicators are in bullish mode and index still have chances to complete a morning star on daily chart if it would succeed in closing above 33,800 points during current trading session. As index have generated two consecutive hammers on daily chart therefore bulls would try to dominate the sentiment but it's recommended to stay cautious because an intraday dip could be witnessed anytime until index would close above 34,500 points and those dips would provide attractive levels for new buying.