PSX Daily Market Review - 24th Jan 2019

Trading volume at PSX floor increased by 42.19 million shares or 30.84% on DoD basis, whereas the benchmark KSE100 index opened at 39,971.54, posted a day high of 40,198.28 and a day low of 39,905.03 points during last trading session while session suspended at 40,057.85 with net change of 155.64 points and net trading volume of 106.62 million shares. Daily trading volume of KSE100 listed companies increased by 18.16 million shares or 20.53% on DoD basis.
Foreign Investors remained in net buying positions of 5.18 million shares and net value of Foreign Inflow increased by 5.27 million shares. Categorically, Foreign Corporate and Overseas Pakistanis investors remained in net buying positions of 3.92 and 1.25 million shares respectively. While on the other side Local Companies, Banks and Mutual Fund remained in net buying positions of 2.69, 0.18 and 1.16 million shares respectively but Local Individuals, NBFCs, Brokers and Insurance companies remained in net selling positions of 5.96, 0.09, 0.03 and 3.96 million shares respectively.

Asian shares subdued as U.S. political standoff, ECB decision eyed
Asian shares were subdued on Thursday as political uncertainty in the United States and worries about weakening global economic growth left investors wary of riskier assets. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.1 percent. It has gained 3.7 percent so far this year. Australian shares were flat while Japan's Nikkei .N225 was last down almost half a percent after moving between positive and negative territory.
Mini-budget lacks measures to address growing fiscal deficit
The business community expressing positive feelings on government Economic Reform Package (ERP) or mini budget termed it a positive for some businesses in the short run, but criticized lack of measures to address the burgeoning fiscal deficit of 6-7% of GDP in FY19. The govt announced the much anticipated mini-budget also known as Economic Reform Package (ERP). Contrary to expectations, the bill announced had few revenue generating measures while it was more tilted towards giving relief to stock markets, local manufacturers, exporters, Small and Medium Enterprises (SMEs) and farmers.
Industry rules out expected relief in urea price
Disagreeing with the finance minister’s claim that the GIDC reduction will help cut the urea prices by Rs 200 per bag, the fertilisers industry has said that the industry will not be able to pass the entire impact to the consumers and the price is likely to come down by Rs 100 per bag only. Fertilisers industry has not been able to pass on the impact of GIDC in full to the urea consumers, therefore, expected relief in prices of urea may not be as envisaged in the Finance Minister supplementary finance bill speech, sources in Fertilizer industry told The Nation.
Budget pleases auto industry
Auto industry has lauded lifting of ban on purchasing of vehicles from non filers. “It is a marvelous step of present Government. Through this lifting of ban definitely the production and sales of local manufactured vehicles will increase," said Shafiq Ahmed Shaikh, Spokesperson Pak Suzuki Motor Company Limited. He said since July, last year, the local automobile companies suffered huge losses and only PSMCL suffered losses of around 32 percent.
Qatar lifts ban on import of Pak rice
Qatar has lifted ban on the import of rice from Pakistan that would provide additional US $ 40-50 million of rice exports to Qatar.During visit of Prime Minister Imran Khan to Qatar on 21-22 January 2019, the Qatari government has finally agreed to include Pakistan-origin rice in the tender documents of the Central Tendering Committee which falls directly under the purview of Qatar’s Ministry of Economy & Commerce.

The Benchmark KSE100 Index have penetrated its major resistant trend lines in upward direction and it’s expected that this bullish momentum would continue for a while now and index would try to target 40,500 points in this rally. But there is one this which must have to be kept in mind that index is still moving in a bearish trend channel and it’s still caged in its correction of last bearish rally and bullish momentum would start once index would succeed in closing above 40,700 points on weekly chart, it’s expected that index would remain bullish during current trading session but today’s closing matters a lot because it would decided market sentiment for next week. If index would succeed in maintaining positive momentum above 40,500 points till session end then it can be expected that market would try to reach 41,000 points otherwise a corrective move could be witnessed in second half of tomorrow’s session. It’s recommended to trade for intraday during current trading session and to initiate short and midterm trades its recommended to wait for this weekly closing.