PSX Daily Market Review - 25th March 2019

Trading volume at PSX floor increased by 3.29 million shares or 4.04% on DoD basis, whereas the benchmark KSE100 index opened at 38,437.17, posted a day high of 38,721.05 and a day low of 38,389.86 points during last trading session while session suspended at 38,531.87 with net change of 147.15 points and net trading volume of 54.20 million shares. Daily trading volume of KSE100 listed companies dropped by 1.08 million shares or 1.96% on DoD basis.
Foreign Investors remained in net buying positions of 1.72 million shares but net value of foreign inflow dropped by 0.21 US Dollars. Categorically, Foreign Individuals, Corporate and Overseas Pakistanis remained in net buying positions of 0.03, 0.43 and 1.26 million shares. While on the other side Local Individuals, Local Companies and Insurance Companies remained in net selling positions of 0.40, 3.34 and 1.63 million shares respectively but Banks, NBFCs, Mutual Fund and Brokers remained in net buying positions of 0.05, 1.16, 1.09 and 3.36 million shares respectively.

Global stocks tumble as bond markets sound U.S. recession warning
Investors ditched shares on Monday and fled to the safety of bonds while the Japanese yen hovered near a six-week high as risk assets fell out of favor on growing fears about a U.S. recession, sending global yields plunging. U.S. stocks futures fell, with E-minis for the S&P 500 skidding 0.5 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.4 percent to a one-week trough in a broad sell-off in equities in the region. Japan’s Nikkei tumbled 3.2 percent to the lowest in two weeks, South Korea’s Kospi index declined 1.6 percent while Australian shares faltered 1.3 percent. Chinese shares also declined with the blue-chip CSI 300 index down 0.8 percent. On Friday, all three major U.S. stock indexes clocked their biggest one-day percentage losses since Jan.3. The Dow slid 1.8 percent, the S&P 500 was off 1.9 percent and the Nasdaq dropped 2.5 percent.
Endowment fund to promote tourism on the cards
Special Assistant to Prime Minister on Overseas Pakistanis Sayed Zulfikar Abbas Bukhari on Sunday said the federal government was planning to set up an endowment fund with the collaboration of all the provinces to market their tourist attractions. The special assistant who also holds the office of chairman of National Tourism Coordination Board (NTCB) said, all the stakeholders were unanimous over the idea of retaining foreign tourists’ confidence through destination branding. The decision was taken during the first meeting of the board conducted to formulate a permanent policy required to enable sustainable growth of tourism sector, the chairman NTCB said in an exclusive talk with APP. NTCB was recently constituted by the federal government with an aim to promote the pluralistic image of country across the globe and synchronize all the regional tourism departments since the tourism was a provincial subject after 18th amendment.
Footwear exports expand 14.55pc in 8 months
The footwear exports from the country witnessed an increase of 14.55 percent during the first eight months of the current fiscal year compared to the corresponding period of last year. Pakistan exported footwear worth $80.292 million during July-February (2018-19) against the exports of $70.093 million during July-February (2017-18), showing a growth of 14.55 percent, according to the latest data of Pakistan Bureau of Statistics (PBS). Among these, the exports of leather footwear witnessed a growth of 13.13 percent as it surged from $62.930 million during last fiscal year to $71.191 during the current year.
Up to 145pc rise in gas prices sought
Up to 145 per cent increase in prescribed gas prices with effect from July 1, 2019 has been sought to meet revenue requirements of the gas utilities for the next financial year, it emerged on Sunday. The Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company Limited (SSGCL) have filed their petitions for tariff increase at a time when the Pakistan Tehreek-i-Insaf (PTI) government was still grappling with the political fallout of the 35pc increase it had allowed in October 2018. In the process, four managing directors of the two companies have since been removed.
Nowshera-Dargai train shuttle service from April 30: Rashid
Federal Minister for Railways Sheikh Rashid has said that Nowshera-Dargai train shuttle would be made operational from April 30. He said it would be another landmark step taken by the government in the light of the vision of Prime Minister Imran Khan to provide cheaper transport facilities to the general public. Moreover, for the promotion of tourism in Khyber Pakthunkhwa, he said, four locomotives will be given besides rehabilitating the old tracks. He said a request in this connection has already been made to Chief Minister to take timley steps for removing all hurdles in way of the railway track. He said this while talking to reporters during his visit to inspect current ongoing work for the restoration of Nowshera-Dargai Railways track. Minister Ali Muhammad Khan was also present on this occasion. Federal Minister Sheikh Rashid disclosed that with the support of provincial government of Khyber Pakhtunkhwa, Dargai-Karachi, Attock and Kundian tracks would also be restored and rehabilitated on priority basis.

The Benchmark KSE100 Index have bounced back after posting a double bottom during last week and it’s expected that it would now try to penetrate its resistant trend line which falls at 38,660 points. As of now index seems to open with a positive gap and if it would succeed in maintaining above 38,660 points on hourly chart then a further spike towards 39,000 points would be witnessed and index would face resistances at 39,053 and 39,350 points while on flip side index would find supports at 38,150 and 37,760 points on two respective horizontal supportive regions. Some volatility with low volumes would be witnessed therefore it’s recommended to trade with strict stop loss.