PSX Daily Market Review - 26th July 2019

Trading volume at PSX floor dropped by 20.87 million shares or 24.73% on DoD basis, whereas the benchmark KSE100 index opened at 32,484.35, posted a day high of 32,502.22 and a day low of 32,150.26 points during last trading session while session suspended at 32,446.40 points with net change of 45 points and net trading volume of 54.38 million shares. Daily trading volume of KSE100 listed companies dropped by 18.31 million shares or 25.19% on DoD basis.
Foreign Investors remained in net selling positions of 76.88 million shares but net value of Foreign Inflow increased by 1.59 million US Dollars. Categorically, Foreign Corporate Investors remained in net selling positions of 77.2 million shares but Overseas Pakistanis remained in net buying positions of 0.32 million shares. While on the other side Local Individuals, Companies and Insurance Companies remained in net long positions of 81.15, 12.45 and 1.59 million shares respectively but Local Banks, Mutual Funds and Brokers remained in net selling positions of 10.31, 5.99 and 0.74 million shares.

Asian shares slip on mixed U.S. earnings, ECB rate hold
Asian share prices dropped on Friday following mixed U.S. earnings reports and after the European Central Bank unexpectedly held interest rates steady, while the euro held above two-year lows struck overnight. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dropped 0.45% while Japan's Nikkei .N225 lost 0.5%. Shanghai shares .SSEC ticked down 0.15%. Wall Street shares fell from record highs on Thursday, with the S&P 500 .SPX losing 0.53%, following a flurry of downbeat quarterly results from Ford Motor (F.N) and other companies.
China says willing to expand CPEC framework
China is willing to enrich and expand the scope and framework of China-Pakistan Economic Cor­ridor (CPEC) for the country’s scoio-economic de­velopment and to pass on its maximum benefit to the people. We are firmly committed to promote the con­struction of the CPEC for the benefit of the Paki­stani people,” this was stated by spokesperson of the Chinese Foreign Ministry Hua Chunying while commenting on completion of the Sukkur-Multan section of the Peshawar-Karachi Expressway, here at a regular news briefing on Thursday. She noted that the length of the Sukkur-Multan section is 392 km.
Japan to provide 322m yen for human resource development
The Government of Japan Wednesday announced grant aid worth around 322 million Japanese Yen for the Human Resource Development Scholarship (JDS) Programme in Pakistan. Notes to this effect were signed and exchanged between Yusuke Shindo, Charge d’ Affaires, Embassy of Japan in Pakistan, and Secretary, Economic Affairs Division (EAD) Noor Ahmed. A grant agreement on the details of implementation of the project for fiscal year 2019 was signed and exchanged between Shigeki Furuta, Chief Representative of Japan International Cooperation Agency (JICA) and Adil Akbar Khan, Joint Secretary, EAD.
FATF cell set up at FBR to deal with terror financing
The Federal Board of Revenue (FBR) has established a Financial Action Task Force (FATF) cell to ensure an effective and timely implementation of measures against terror financing carried out through currency smuggling. The cell will seek information required for FATF-related work from the FBR, field formations, directorates and record of meetings. The FATF cell will serve as a focal point for all activities related to customs compliance for FATF issues. The Financial Action Task Force cell has been placed under the Director General of Intelligence and Investigation, Islamabad. According to the notification, customs officer Waheed Marwat has been appointed head of the cell.
Govt set to revive WB-proposed gas reforms amid resistance from provinces
The government has revived the World Bank-supported gas sector reforms left unfinished by former Prime Minister Shahid Khaqan Abbasi amid resistance from provinces. The proposed reforms envisage dismantling of two gas utilities – Sui Northern Gas Pipelines Ltd (SNGPL) and Sui Southern Gas Pipelines Ltd (SSGCL) – into at least five public sector companies, including a gas transmission company and four provincial distribution companies on the pattern of power sector companies. Informed sources told Dawn that a World Bank mission was currently in Islamabad and has held detailed discussions with the government including the Ministry of Energy, gas utilities, the regulator and other stakeholders.

The Benchmark KSE100 index have tried to start a pull back during last trading session and have generated a hammer on daily chart after getting support from a horizontal supportive region. It’s expected that index would try to continue its pull back during current trading session as well if it would succeed in penetration above 32,500 points on hourly closing basis. It’s recommended to stay cautious because index would face a strong resistance at 32,750 and it’s recommended to post trailing stop loss on long positions near that region. While on flip side index would try to find supports at 32,000 and 31,700 points in case of bearish pressure.