PSX Daily Market Review - 27th March 2019

Trading volume at PSX floor increased by 29.91 million shares or 52.97% on DoD basis, whereas the benchmark KSE100 index opened at 38,161.08, posted a day high of 38,372.89 and a day low of 38,039.69 points during last trading session while session suspended at 38,329.13 with net change of 200.47 points and net trading volume of 50.86 million shares. Daily trading volume of KSE100 listed companies increased by 14.38 million shares or 39.40% on DoD basis.
Foreign Investors remained in net buying positions of 3,988 shares and net value of foreign inflow increased by 0.80 US Dollars. Categorically, Foreign Corporate remained in net buying positions of 2.63 million shares but Overseas Pakistanis remained in net selling positions of 2.63 million shares. While on the other side Local Individuals and Brokers remained in net buying positions of 13.80 and 24.16 million shares respectively but Local Companies, Banks, NBFCs, Mutual Fund and Insurance Companies remained in net selling positions of 32.10, 5.00, 0.12, 0.21 and 0.35 million shares respectively.

Asian shares lose steam on U.S. recession fears; kiwi dives on RBNZ signal
Asian shares slipped on Wednesday, giving up small gains made the previous day as investors tried to come to terms with a sharp shift in U.S. bond markets and the implications for the world’s top economy. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1 percent while Japan’s Nikkei average lost 0.6 percent. Chinese stocks bucked the trend, with the benchmark Shanghai Composite rebounding 0.6 percent, the blue-chip CSI 300 climbing 1.1 percent, and Hong Kong’s Hang Seng advancing 0.5 percent.
Gross financing requirement for next 2.5 years around $50b: Kardar
Former governor of State Bank of Pakistan (SBP) Shahid Hafiz Kardar on Tuesday said that Pakistan’s annual gross financing requirement is up to $20 billion to $25b in next two years. The gross financing requirement for next 2.5 years is around $50 billion, which would require debt rollover/rescheduling of $15 billion and additional debt of $35 billion, he said while giving presentation on ‘Current Challenges to the Economy of Pakistan’ at Swiss Embassy. The event was attended by large number of ambassadors and the members of the Swiss Business Council.
USC seeking Rs5 billion from Saudi Arabian businessman Share:
The Utility Stores Corporation (USC) is looking for Rs5 billion from Saudi Arabia businessman on deferred payments basis for improving the performance of the country’s biggest state-run retail chain having the wide outreach. Mushtaq Ahmad, acting managing director (MD), on Tuesday informed a parliamentary committee that government is working to revive the USC, which is facing financial issues. He disclosed that USE is working on a contract with some Saudi Arabia businessman for obtaining funds up to Rs 5 billion on two years deferred payments basis, for improving the performance of Utility Stores Corporation.
Tea imports dip 1.12pc to $393.5m in 8 months
The tea imports into the country witnessed decrease of 1.12 percent during the first eight months of the current fiscal year compared to the corresponding period of last year. The tea imports into the country during July-February (2018-19) were recorded at $393.585 million compared to the imports of $298.041 million in July-February (2017-18), showing decline of 1.12 percent, according to the data of PBS.
Finance minister briefs IMF mission chief on govt efforts for economic uplift
Finance Minister Asad Umar on Tuesday met with International Monetary Fund's (IMF) new mission chief for Pakistan, Ernesto Ramirez Rigo, in Islamabad and apprised him of the measures taken by the government to revamp the economy. According to a statement issued by the Ministry of Finance, discussions between the two focused on fiscal, monetary, and structural reforms as well as the energy sector. The finance minister informed the IMF mission chief that the structural reforms and other economic initiatives introduced by the government were "yielding desired results", the statement said. Umar also assured Rigo that "the government would continue to address the macroeconomic imbalances and would take necessary corrective measures in this regard".

The Benchmark KSE100 Index have once again bounced back to retest its resistant trend line which is pushing index downward since 39,700 but this time that line falls at 38, 350 points and it’s expected that index would try to open above this trend line with a positive gap to reduce bearish pressure but very next to this trend line a strong horizontal resistant region would try to cap index at 38,550 points, therefore it’s recommended to wait for an hourly closing above 38,550 for initiating long positions because if index would not succeed in maintaining above said level then an intraday dip could be witnessed which may lead index to retest low of previous trading session. Index would remain bearish until it close above 39,053 or 39,350 points on daily basis while on flip side it would try to find supports at 38,000 and 37,760 points in case of bearish pressure. It’s recommended to trade cautiously with strict stop loss.