PSX Daily Market Review - 24th April 2019

Trading volume at PSX floor dropped by 6.36 million shares or 5.05% on DoD basis, whereas the benchmark KSE100 index opened at 36,901.24, posted a day high of 36,911.61 and a day low of 36,136.11 points during last trading session while session suspended at 36,404.03 with net change of -497.66 points and net trading volume of 95.42 million shares. Daily trading volume of KSE100 listed companies dropped by 8.86 million shares or 8.50% on DoD basis.
Foreign Investors remained in net buying positions of 5.67 million shares and net value of Foreign Inflow increased by 4.30 million US Dollars. Categorically, Foreign Individuals remained in net selling positions of 0.01 million shares but Foreign Corporate and Overseas Pakistani investors remained in net buying positions of 4.35 and 1.33 million shares respectively. While on the other side Local Companies, Banks and Insurance Companies remained in net buying positions of 7.28, 2.22 and 2.61 million shares respectively but Local Individuals, NBFCs, Mutual Fund and Brokers remained in net selling positions of 7.02, 0.30, 4.66 and 3.75 million shares respectively.

Asian shares up after Nasdaq, S&P 500 hit record highs
Equity markets in Asia rose on Wednesday morning after upbeat earnings helped the Nasdaq and S&P 500 indexes reach record closing highs on Wall Street overnight, while oil retreated from its near six-month highs. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.1 percent in early trade in Asia. The gains followed a strong performance on Wall Street, driven by robust results from Coca-Cola, Twitter, United Technologies and Lockheed Martin. The Dow Jones Industrial Average rose 0.52 percent to 26,647.97, the S&P 500 gained 0.91 percent to 2,934.31 and the Nasdaq Composite added 1.35 percent to 8,123.25. On Wednesday morning, S&P 500 e-mini stock futures were up 0.03 percent at 2,938.75, just short of a record high of 2,944.75 on October 3. Australian shares gained 0.6 percent, while Japan’s Nikkei stock index was 0.3 percent higher. Seoul’s Kospi was up 0.1 percent.
New FTA with China to increase exports by $500m, says Dawood
Adviser to PM on Commerce and Textile Abdul Razak Dawood on Tuesday said that under the new list of 313 items included in the second phase of China-Pakistan free trade agreement (FTA), the country’s export earnings could increase by $500 million within a time span of 18 months. He said the new list is not limited to textile specific products but also includes textile goods, leather, engineering, chemicals, furniture, auto parts, plastic, rubber, paper board, ceramic, glass, surgical instruments, footwear, wood, articles of stones, sea food, meat, tractors, home appliances etc. The second phase of China-Pakistan FTA is scheduled to be signed in Beijing on April 28 during PM Imran Khan’s official visit of to the country.
Hafeez moves on amnesty scheme as IMF, FATF nod awaited
The timeline of the International Monetary Fund (IMF) bailout package has complicated the launch of government’s first tax amnesty scheme, Dawn has learnt from knowledgeable sources in the Finance Division. In a meeting held to discuss the tax amnesty scheme — Asset Declaration Scheme — under the leadership of Finance Adviser to Prime Minister Dr Abdul Hafeez Shaikh, the talks centred on two important issues: tax rates and the duration of the scheme. However, the discussions with the International Monetary Fund and the review meeting of the Financial Action Task Force (FATF) will dictate the scope and duration of the proposed amnesty scheme.
CDWP approves two projects worth Rs17.20 billion
Central Development Working Party (CDWP) Tuesday accorded approval to two projects worth Rs 17.20 billion. Central Development Working Party (CDWP), which met here in chairmanship of Federal Minister for Planning, Development & Reforms Makhdum Khusro Bakhtyar, accorded approval to a project worth Rs 202.412 million and recommended a project worth Rs 17 billion to ECNEC. Secretary Planning Zafar Hasan, senior officials from federal and provincial governments were also present in the meeting. Projects related to mass media and water resources were presented in the meeting. The first project related to mass media ‘Khyber Pakhtunkhwa Integrated Tourism Development Project (KITE)’ worth Rs 17000 million was presented by government of Khyber Pakhtunkhwa which was recommended to ECNEC for consideration.
Rice growers advised to avoid over-use of chemicals Share:
Speakers at a seminar have called upon the rice growers to avoid over-use of chemicals, especially Tricyclazole and Buprofezin, to ensure safe and healthy basmati rice from farm to fork. The seminar ‘Khushal Kissan’ was organised by the Pakistan Basmati Heritage Association (PBHA). Basmati growers from Narang Mandi and members of the Association attended the meeting. Office bearers of Rice Exporters Association of Pakistan (REAP), Samiullah Naeem, Shahzad Chaudhry & Raja Arsalan attended the event. PBHA has been formed for promotion and preservation of basmati rice heritage of Pakistan. Convener PBHA Shahid Tarar shared the vision of the Association for meeting the challenges being faced in Basmati rice production and export. He said the country was lagging behind other rice producing countries in production of Basmati rice due to rising cost of inputs.

NCL, DGKC, PPL, DOL and PSO would try to resist against negative momentum on intraday basis and a positive sentiment could be witnessed in these scripts, while ENGRO, ISL, SNPG and ATRL would remain in laggards.

The Benchmark KSE100 Index have succeeded in penetration of its previous low which was posted in Oct. 2018 and an intraday pull back was witnessed during last two hours of last trading session, right now it's expected that index would try to continue this reversal initially because hourly momentum indicators have changed their direction to bullish side which would result in an intraday spike but seems that index take a final dip in second half and then a final reversal would start for a short term basis. It's recommended to stay cautious and initiate long positions on dips with strict stop loss at 35,500 points. Index would try to find supports around 36,000 and 35,800 points while on flipside it's expected that index would face initial resistances at 36,800 and 37,300 points. Index would remain under pressure until it would succeed in closing above 37,500 points on daily chart which may not take more than a day or two therefore it's time to initiate buying on dips with strict stop loss. For current trading session index would try to swing because initially it would take a spike and then a serious dip could be witnessed where a good buying opportunity could be availed for short term trading.