PSX Daily Market Review - 25th Feb 2019

Trading volume at PSX floor dropped by 3.89 million shares or 3.79% on DoD basis, whereas the benchmark KSE100 index opened at 39,982.37, posted a day high of 40,082.21 and a day low of 39,799.93 points during last trading session while session suspended at 40,016.13 with net change of -54.58 points and net trading volume of 66.27 million shares. Daily trading volume of KSE100 listed companies dropped by 10.03 million shares or 13.14% on DoD basis.
Foreign Investors remained in net selling positions of 3.49 million shares and net value of Foreign Inflow dropped by 1.82 million US Dollars. Categorically, Foreign Individuals, Corporate and Overseas Pakistani Investors remained in net selling positions of 0.04, 2.83 and 0.62 million shares respectively. While on the other side Local Companies, Banks, NBFCs, Mutual Fund and Insurance Companies remained in net buying positions of 0.86, 1.27, 0.21, 0.10 and 2.16 million shares but Local Individuals and Brokers remained in net selling positions of 1.28 and 0.08 million shares respectively.

Asia shares climb as Trump pushes out tariff deadline
Asian shares scaled a 5-month peak on Monday after U.S. President Donald Trump confirmed he would delay a planned increase on Chinese imports as talks between the two sides were making “substantial progress”. The Australian dollar, a liquid proxy for China investments, got a 0.4 percent lift from the news and the dollar touched a fresh seven-month low on the yuan. Shanghai blue chips jumped 2.8 percent. That brought gains this year to 20 percent, helped in part by Beijing’s efforts to pump new credit into the financial system. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.5 percent to the highest since October, and is up 10 percent for the year so far.
FPCCI laments inordinate delay in releasing refund claims
Engr Daroo Khan Achakzai, president of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has urged the Finance Minister Asad Umar to release the exports sector’s overall outstanding refund claims including deferred claims; Customs Duty Drawback; DLTL etc., which have been lying pending for payment since long. The FPCCI chief recalled that he, during the Finance Minister’s Pre-Budget visit to FPCCI Head Office Karachi on January 12, 2019 and thereafter on his post budget visit to FPCCI Regional Office Lahore, had stressed the need for an early clearance of back-log of refund claims and automatic payment within the stipulated time limit as the inordinate delay had made the exporters to suffer from liquidity crunch in meeting future export orders well in time.
EBM continues to expand export business
In the whole of the universe, human beings are the most superior creation of the Creator. Besides other instincts, it is human nature that they crave for the better. Seldom are they satisfied with what they do and what they have. If we go through the chapters of history, we observe that humans have made tremendous development through science and technology. The bottom line is the very instinct to outshine others. Human migration is a constant phenomenon in the history and same is the case in modern times. As our country is still developing, the educated and skilled professionals look for batter opportunities abroad. It is because of this very reason that approximately 10 million Pakistanis are settled overseas.
Gas firms perturbed over obstacles to investment
Private gas sector investors are perturbed over unremitting hitches to their investment plans for utilisation of surplus processing capacity of LNG (liquefied natural gas) terminals and setting up of new terminals, while the consumers and national economy pay double the LNG re-gasification charges. About 10 major companies or their associates have complained to the government that their efforts to bring LNG into the system at competitive rates were facing roadblocks and some of them were fed up to pursue their investment plans. These companies include Energas that also has partners like ExxonMobil, Nebras Power, a joint venture of ExxonMobil and Qatar Petroleum, United Gas Development Company (UGDC), and four independent power producers, besides some other private businesses.
Chinese consortium ready to take over PSM
The Pakistan Steel Mills Board is likely to propose the federal government to hand over the steel mill to a Chinese consortium on built operate transfer (BOT) basis for 30 years, it was learnt reliably here Sunday. A Chinese consortium consisting of Chinese Metallurgical Corporation of China Ltd (MCC) and Donghua Iron and Steel Group is interested in taking over PSM on BOT basis, official source told The Nation here. The Board of Directors of Pakistan Steel Mills has considered various options for the revival of Pakistan Steel Mill during past few months and find only one option viable which is the transfer of the mill on BOT/PPP mode basis.

The Benchmark KSE100 Index have tried to find some ground at a supportive trend line during last week and have bounced back in upward direction after posting a double bottom on said trend line therefore its expected now that index would try to take a spike during current week to test its resistant regions at 40,350 and 40,500 points. Daily momentum indicators are in mixed mode and a straight spike or dip could not be expected during this week but market seems to remain volatile between 39,500 till 40,500 points. Breakout of either side would add further 1000-1500 points in respective direction therefore its recommended to stay cautious and adopt swing trading strategy with strict stop loss on both sides.