PSX Daily Market Review - 23rd April 2019

Trading volume at PSX floor dropped by 51.39 million shares or 28.98% on DoD basis, whereas the benchmark KSE100 index opened at 37,474.80, posted a day high of 37,479.27 and a day low of 36,839.29 points during last trading session while session suspended at 36,901.69 with net change of -390.78 points and net trading volume of 104.28 million shares. Daily trading volume of KSE100 listed companies dropped by 34.80 million shares or 25.02% on DoD basis.
Foreign Investors remained in net buying positions of 1.52 million shares and net value of Foreign Inflow increased by 1.14 million US Dollars. Categorically, Foreign Individuals remained in net selling positions of 0.02 million shares but Foreign Corporate and Overseas Pakistani investors remained in net buying positions of 1.11 and 0.43 million shares respectively. While on the other side Local Companies, Banks and Insurance Companies remained in net buying positions of 3.22, 2.03 and 0.74 million shares respectively but Local Individuals, NBFCs, Mutual Fund and Brokers remained in net selling positions of 0.39, 0.40, 3.33 and 2.78 million shares respectively.

Asian shares steady after Easter weekend; oil hits 2019 highs
Asian shares were little changed on Tuesday, hovering not far from nine-month peaks hit last week, with concerns China may slow the pace of policy easing curbing the market’s enthusiasm. MSCI’s broadest index of Asia-Pacific shares outside Japan was almost flat, while Japan’s Nikkei average eased 0.2 percent. Many markets around the world remained shut on Monday after the long Easter weekend. China stocks fell from a 13-month high on Monday, posting their worst session in nearly four weeks, as comments from top policymaking bodies raised investor fears that Beijing will ease up on stimulative policies after some signs of stabilization in the world’s second-largest economy. Stocks on Wall Street hovered near break-even on Monday as the benchmark S&P 500 index was about 1 percent away from its record high hit in September, while the S&P energy index led gains on higher oil prices.
LCCI for uninterrupted power supply to industry in Ramazan
The Lahore Chamber of Commerce & Industry has urged the government to ensure uninterrupted power supply to the industry during the holy month of Ramazan. In a statement issued on Monday, LCCI President Almas Hyder said that industry should be given uninterrupted power supply this year since Pakistan has added substantial electricity to the national grid after completion of various projects. “In previous years, the industry had to bear the burden of loadshedding in Ramazan as the governments did not have adequate power after catering to the domestic requirements”, he said. LCCI President said that all system constraints should be removed to avoid power shutdowns for the industrial sector keeping in view the hot weather and power supply burden. He said that DISCOs should have sufficient stock of transformers, cables, polls and all other necessities to keep the things under control.
Pakistan, ITFC sign $551 million trade financing facility
Pakistan and International Islamic Trade Finance Corporation (ITFC) have signed a trade financing facility amounting to $551 million that would ease the pressure on country’s foreign exchange reserves slightly. The ITFC, a subsidiary of Islamic Development Bank (IsDB) Group, would provide the loan to Pakistan for import of oil and LNG. This facility will be utilized by Pakistan State Oil Company Limited, Pak Arab Refinery Limited (PARCO) and Pakistan LNG Limited (PLL). The financing agreement provides trade financing amounting to $551 million for a period of one year for import of oil and LNG. ITFC has agreed to provide trade financing of $1.3 billion during the year 2019 for import of oil and LNG by PSO, PARCO and Pakistan LNG Limited. It may be recalled that this facility is a part of framework agreement signed with ITFC in April 2018 for a total envelop of $4.5 billion over for a period of three years (2018-2020).
$551m facility signed with ITFC for fuel imports
The government of Pakistan and the International Islamic Trade Finance Corporation (ITFC) on Monday signed a $551 million facility to finance oil and liquefied natural gas (LNG) imports during the current fiscal year. Adviser to the Prime Minister on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Shaikh attended the signing ceremony. This is the single largest financing from the ITFC — a subsidiary of the Islamic Development Bank — increasing the total facility to about $1.05 billion during current fiscal year. This is part of a $4.5bn package Pakistan and ITFC had signed in April 2018 to cover oil and LNG imports over a period of three years at the rate of about $1.5 per annum.
Oil prices soar by about 3 pct as US plans end to Iran sanction waivers
Oil prices rallied by about 3 per cent on Monday to their highest since late 2018 as the United States was set to announce that all imports of Iranian oil must end or be subject to sanctions. Brent crude futures rose as much as 3.3 per cent to $74.31 a barrel, the highest since Nov 1, before easing back to $73.82 by 0452 GMT, up 2.6 per cent from their last close. US West Texas Intermediate (WTI) crude futures climbed by as much as 2.9 per cent to $65.87 per barrel, the most since Oct. 31, and were at $65.38 at 0452 GMT, up 2.6 per cent from their last close.

EFOODS, NML, STCL, DOL and EPCL would try to resist against negative momentum on intraday basis, while ENGRO, PSO, MLCF, TRG and PAEL would remain in laggards.

The Benchmark KSE100 Index have entertained its daily double top very effectively during last two trading session and have tried to create a bearish engulfing pattern in response to a morning star which have been occurred on last Friday. Although bears have not been succeeded in creating a bearish engulfing pattern on daily chart during last trading session but they have successfully vanished the bullish impact of last morning star and also they have succeeded in proving that cheat pattern strategy still prevails which have shaken investors confidence during last two weeks. As of now hourly and daily momentum indicators are in bearish mode which indicates that index would try to slide downward and in this direction it would may face supportive regions ahead at 36,500 and 35,800 while on flipside index would face resistances at 37,500 and 37,760 points. It's recommended to stay cautious and avoid new buying on current prices, it seems that index would now bounce back after penetration of its previous low therefore it's recommended to wait for 36,100 or 35,800 points to initiate new buying, otherwise buying in chunks to accumulate large positions could be beneficial below 36,500 points.