PSX Daily Market Review - 24th June 2019

Trading volume at PSX floor dropped by 33.72 million shares or 20.69% on DoD basis, whereas the benchmark KSE100 index opened at 35,106.58, posted a day high of 35,207.59 and a day low of 34,995.91 points during last trading session while session suspended at 35,125.25 with net change of 129.34 points and net trading volume of 81.67 million shares. Daily trading volume of KSE100 listed companies dropped by 10.34 million shares or 11.24% on DoD basis.
Foreign Investors remained in net selling positions of 0.79 million shares but net value of Foreign Inflow increased by 0.24 million US Dollars. Categorically Foreign Individuals and Foreign Corporate remained in net selling positions of 0.30 and 0.97 million shares but Overseas Pakistani investors remained in net buying positions of 0.48 million shares. While on the other side Local Individuals, Banks, NBFCs and Mutual Fund remained in net buying positions of 38.25, 1.10, 0.04 and 0.75 million shares respectively but Local Companies, Brokers and Insurance Companies remained in net selling positions of 35.42, 3.30 and 0.26 million shares.

Asian stocks subdued, oil rises on U.S.-Iran tensions
Asian shares were off to a cautious start on Monday as investors pinned their hopes on any signs of a thaw in Sino-U.S. trade negotiations while oil prices firmed on worries over heightened tensions between the United States and Iran. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.16% in early trade while Japan’s Nikkei ticked down 0.26%. Wall Street shares closed slightly lower on Friday after hitting a record high thanks to signals last week from the Federal Reserve that it would cut interest rates soon to bolster its economy from protracted trade conflicts. The Chinese state-run Xinhua news agency said on Sunday China’s President Xi Jinping will attend the G20 summit in Japan this week, giving the first official confirmation of his attendance at a gathering where he is expected to meet U.S. President Donald Trump.
EV policy to be aligned with current auto policy: Razak
Prime Minister’s Adviser on Commerce Abdul Razak Dawood Sunday said the electric vehicle (EV) policy would be formulated in consultation with the stakeholders and it would be aligned with the current auto policy. The policy would incorporate global and regional best practices, growth of the EVs and the environmental concerns would be addressed properly, he said in a press statement. Meanwhile, according to a Ministry of Commerce press release, Secretary Industries and Production Aamir Khawaja chaired an inter-ministerial on the formulation of a National Electric Vehicles Policy. Representatives of the Ministry of Climate Change and EDB were also present in the meeting. Aamir Khawaja on the occasion highlighted the importance of global auto trends where EVs market was growing fast.
PANAH lauds taxes on tobacco
Pakistan National Heart Association (PANAH), President Major General ® Masood ur Rehman Kiayani has hailed the government’s decision to impose tax on tobacco, saying this will go a long way to curtail tobacco use and positively impact public health. Addressing a press conference, he said a strict legislation was also needed in this regard as despite a ban on smoking in public health facilities, colleges, parks and hospital, the rule was not being implemented.
FATF compliance will require all-out effort
As the Pakistani delegation returns from Orlando after the Financial Action Task Force (FATF) meetings, they will bring with them a heavy agenda of tasks for the government to execute. The country has been granted two more months to complete compliance with its own action plan submitted to FATF last year and the next review is scheduled for September. According to government officials who spoke only on the condition that their names not be used, a multiagency effort will have to be launched to complete compliance with the action. Key areas of focus will be the Terror Financing Risk Assessment by National Counter Terrorism Authority (Nacta), Sectoral Risk Assessment of Cash Smuggling by the Federal Board of Revenue with interagency coordination to be provided by Nacta.
PML-N wasted $66bn fiscal space: Khusro Bakhtiar
Declaring former finance minister Ishaq Dar an “economic hitman”, the federal Minister for Planning and Develop­ment, Makhdoom Khusro Bakhtiar, on Sunday acc­used the previous Pakistan Muslim League-N (PML-N) government of failing to utilise $66 billion historic fiscal space to stabilise the national economy. Mr Bakhtiar, while taking part in the general debate on the federal budget in the National Assembly, offered to sign a charter of economy with the opposition. The charter was a brainchild of Mr Dar. The speeches of PML-N leader Ahsan Iqbal and PPP legislator Raja Pervez Ashraf during the brief presence of former president and PPP leader Asif Zardari were highlights of the proceedings of the house, which continued its sitting even on the weekend to compensate for a week that had been wasted due to noisy protests by the treasury benches to prevent the Leader of the Opposition, Shahbaz Sharif, from opening the budget debate, apparently to settle scores with the opposition for its similar protest on the budget day.

The Benchmark KSE100 have generated a doji on daily chart after completion of a morning star which have tried to reduce impact of previous morning star but to strengthen current bullish momentum index have daily stochastic and MAORSI on its side because they have recently generated bullish crossovers. As of now it’s expected that index would try continue its bullish momentum towards 35,500 points because it have given a breakout of a triangle in bullish direction on hourly chart along with a daily and weekly closing above its key resistant region of 35,000 points. It’s expected that index would face initial resistances at 35,300 and 35,500 while on flipside it would find supports at 35,000 & 34,800 points in case of any bearish pressure. It’s recommended to post trailing stop loss on long positions until index succeed in closing above 35,500 points.