PSX Daily Market Review - 26th Feb 2019

Trading volume at PSX floor dropped by 30.66 million shares or 31.05% on DoD basis, whereas the benchmark KSE100 index opened at 39,990.34, posted a day high of 40,046.25 and a day low of 39,550.65 points during last trading session while session suspended at 39,606.79 with net change of -409.34 points and net trading volume of 44.19 million shares. Daily trading volume of KSE100 listed companies dropped by 22.08 million shares or 33.31% on DoD basis.
Foreign Investors remained in net buying positions of 0.57 million shares but net value of Foreign Inflow dropped by 0.01 million US Dollars. Categorically, Foreign Corporate remained in net selling positions of 0.97 million shares but Overseas Pakistani Investors remained in net buying positions of 1.55 million shares respectively. While on the other side Local Individuals, Banks, Brokers and Insurance Companies remained in net buying positions of 1.51, 2.36, 0.89 and 2.63 million shares but Local Companies and Mutual Fund remained in net selling positions of 1.83 and 6.21 million shares respectively.

Asian shares fall from five-month highs, pound jumps on Brexit delay hopes
Asian shares lost steam on Tuesday after scaling a five-month high as investors waited to see if Washington and Beijing can clinch a trade deal, while the pound advanced on hopes UK Prime Minister Theresa May will delay a Brexit deadline. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5 percent from its highest since mid-September as U.S. and Chinese negotiators work to hammer out a deal that would end a protracted tit-for-tat tariff battle. President Donald Trump said on Sunday he would delay a tariff hike on $200 billion of Chinese imports in the clearest sign yet that both sides were making progress in the talks, but he also sounded a note of caution, saying a deal “could happen fairly soon, or it might not happen at all.”
Asad chairs high level meeting
Finance Minister Asad Umar chaired high level meeting here on Monday to discuss matters pertaining to operationalisation of Pakistan Infrastructure Bank (PIB) and Public – Private Partnership Authority (PPPA). Both these institutions aim to play a vital role in enhancing investment to GDP ratio and spur overall economic growth. The Pakistan Infrastructure Bank is expected to be operational sometime this year. It will provide facility for long term investment to commercially viable projects. It will also provide support to social sector projects besides helping create a long term debt market. IFC is partnering with the Government of Pakistan for establishment of the bank.
PVMA delegation calls on Dawood
A delegation from Pakistan Vanaspati Manufacturers Association has called on the Prime Minister’s Adviser on Commerce, Textile, Industries and Production and Investment Abdul Razak Dawood. Different issues regarding duty/taxes on import of soyabean oil compliance issues and DTRE facilities were discussed. The issue of harmonizing standards, licensing conformity assessment and traceability procedures adopted by federal and provincial authorities in the light of WTO’s technical barriers to trade agreements were discussed.
‘Fight against pollution to lift LNG demand’
Global liquefied natural gas (LNG) trade is set to rise 11 per cent this year as China leads a global drive to reduce pollution and tackle carbon emissions, Royal Dutch Shell said in an annual LNG report on Monday. Shell’s forecasts, which see LNG demand rising to 354 million tonnes this year and to 384m tonnes in 2020, reflect a burgeoning industry with new production facilities opening in Australia, the United States and Russia and more countries becoming importers by constructing receiving terminals.
Top auditor demands probe into Rs700bn hydel project losses
The Auditor General (AG) of Pakistan has demanded detailed investigations to fix responsibility for losses of almost Rs700 billion caused to the exchequer due to mismanaged development of the Neelum-Jhelum hydropower project and loss of water rights over the Jhelum River to India under an international arbitration. In its performance audit of the 969-megawatt power project worth Rs510bn in Azad Jammu and Kashmir submitted to the parliament on Monday as required under Article 170 of the Constitution, the AG reported that the project faced a cost overrun of almost Rs400bn, loss of non-accrued financial benefits of about Rs237bn and a delay of over 21 years. This is on top of a series of irregularities committed by various governments, departments and officers resulting in more than Rs60 billion losses besides annual recurring loss of Rs5.15bn that the AG said warranted at least two dozen further investigations to fix the responsibility.

The Benchmark KSE100 Index is facing pressure after confirmation of an evening shooting star on weekly chart and this bearish momentum would prevail towards 39,200 and 38,700 points if index would succeed in sliding below 39,500 points on daily chart. As of now index would try to find support from a rising trend line which falls at 39,550 points and if index would succeed in maintaining above this region then a daily double bottom also would be formatted, index have closed at a very critical point and if it would succeed in opening with a negative gap below 39,550 points then an intraday bearish rally would put pressure on index and it would be pushed towards 39,266 points. For intraday trading it’s recommended to start buying on dip with strict stop loss of 39,200 points while for short term trading it’s recommended to post stop loss at 38,700 points. On flip side index would face strong resistances at 40,150 and 40,500 points and index would remain under pressure until it would succeed in closing above 40,500 points on daily basis.