PSX Daily Market Review - 27th June 2018

Trading volume at PSX floor increased by 13.12 million shares or 7.87% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 41,006.75, posted a day high of 41,526.23 and a day low of 40,993.66 during last trading session. The session suspended at 41,246.09 with net change of 267.86 and net trading volume of 91.30 million shares. Daily trading volume of KSE100 listed companies dropped by 16.15 million shares or 15.03% on DoD basis.
Foreign Investors remained in net selling position of 4.20 million shares and net value of Foreign Inflow dropped by 3.88 million US Dollars. Categorically, Foreign Individual, Foreign Corporate and Overseas Pakistanis investors remained in net selling positions of 0.11, 2.72 and 1.37 million shares. While on the other side Local Individuals, Banks, NBFCs, Brokers and Insurance Companies remained in net buying positions of 4.38, 4.24, 0.02, 2.97 and 10.15 million shares but Local Companies and Mutual Fund remained in net selling positions of 8.46 and 9.52 million shares respectively.

Asia shares hobbled by trade fears, oil extends gains
Asian share markets were under pressure on Wednesday as weakness in Chinese stocks and the yuan weighed on sentiment in the region, while oil climbed as the United States pressured allies to stop buying Iranian crude. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS lost another 0.3 percent after touching a two-year trough on Tuesday. Chinese blue chips .CSI300 eased 0.4 percent to be a whisker above 13-month lows as a settlement of Sino-U.S. tensions remained a distant prospect. Japan's Nikkei .N225 had been faring better but soon succumbed to risk aversion and fell 0.5 percent.
Punjab caretaker govt approves Rs693b budget for 4 months
The Punjab caretaker government on Tuesday approved Rs693 billion Budget for the period of four months under the Article 126 of the Constitution of the Islamic Republic of Pakistan. The Constitution authorises the Caretaker Cabinet to approve expenditure for up to the four months from the Provincial Consolidated Fund. Caretaker Minister for Finance Zia Haider Rizvi, while briefing the media regarding approval of Budget here at CM Secretariat, said that 10 percent raise has been approved in basic pay with revision of house rent allowance on the lines of federal government budget. Similarly, 10 percent increase in pension has also been declared, he added.
Billions of rupees export orders face cancellation
Workers' strike has put billions of rupees export orders on stake as operations of the Karachi Port South Asia terminal are suspended since Monday. If the strike prolongs, this could cause cancellation of vital export orders that would not only result in huge losses to the exporters but also to the national exchequer. Furthermore, the manufacturing activities will also be affected as industrial units are not receiving raw materials resulting in heavy financial loss. The PTEA urged the governments to intervene immediately and resolve the issue without any delay. If the issue will not to be resolved, the exporters will have to face huge financial losses and will also lose their hard earned export contracts.
FBR pins hopes on amnesty scheme
The Federal Board of Revenue (FBR) has pinned hopes on tax amnesty scheme to meet its revised tax collection target during outgoing fiscal year, as the scheme may generate upto Rs80 billion for the department. The FBR believes that response to the amnesty scheme is very positive, as the government could attract up to $4 billion through the scheme by the end of June. "We have already decided that collection from the amnesty scheme will be made part of the FBR revenue collection, so it will help in meeting tax collection target during the outgoing fiscal year," said an official of the FBR. He estimated that FBR could raise around Rs80 billion through the scheme.
Businessmen demand change in scheme
Federation of Pakistan Chambers of Commerce and Industry and Lahore Chamber of Commerce and Industry have asked the finance ministry to make some minor procedural change in collection of tax on foreign assets to avail Tax Amnesty Scheme 2018. LCCI Standing Committee on Economic Reforms chairman Kashif Anwar welcomed the Tax Amnesty Scheme. He said that the Federal Board of Revenue has so far received Rs37 billion in tax revenue under the amnesty for undeclared local and foreign assets. As the scheme's last date is fast approaching, he demanded the government to also allow those Pakistanis, who have fixed foreign assets but not have foreign currency accounts neither their siblings have the foreign currency accounts, to submit taxes on foreign assets in equivalent Pakistani rupees in Pakistan. In this way their undisclosed assets abroad will be documented while revenue collection by Pakistan will also be enhanced, he added. He said that government will collect more revenue if this minor change is made in collection procedure of the tax in the scheme.

The Benchmark KSE100 Index is trying to find some ground at crossover of a descending trend line and a horizontal supportive region, but momentum indicators are still in bearish mode on daily and weekly chart. On hourly chart Stochastic and MAORSI are try to pull back and if it would succeed then index would try to take a spike on intraday basis. Index is standing at an edge therefore its recommended to initiate new buying on dip with strict stop loss of 40,500 or 40,114 points to cash the expected correction of last four trading session’s bearish rally. If reversed from 40,500 or 40,114 points then index would face initial resistances at 41,530 and 42,310 points and it would be recommended to offload new buying at these regions gradually.