PSX Daily Market Review - 27th May 2019

Trading volume at PSX floor dropped by 85.68 million shares or 37.63% on DoD basis, whereas the benchmark KSE100 index opened at 35,635.17, posted a day high of 35,766.70 and a day low of 34,435.91 points during last trading session while session suspended at 35,703.81 with net change of 122.47 points and net trading volume of 110.42 million shares. Daily trading volume of KSE100 listed companies dropped by 53.92 million shares or 32.81% on DoD basis.
Foreign Investors remained in net buying positions of 5.23 million shares and net value of Foreign Inflow increased by 3.46 million US Dollars. Categorically, Foreign Corporate remained in net buying positions of 6.64 million shares but Foreign Individuals and Overseas Pakistanis Investors remained in net selling positions of 0.09 and 1.32 million shares. While on the other side Local Companies, Banks, Brokers and Insurance Companies remained in net selling positions of 1.57, 0.52, 6.83 and 3.93 million shares respectively but Local Individuals, NBFCs and Mutual Fund remained in net buying positions of 1.57, 0.52 and 1.81 million shares respectively.

Asia stocks flat, euro holds firm after fragmented Europe vote
Asia stocks hovered near four-month lows on Monday amid concerns about U.S.-China tensions while the euro was confined to a narrow range after the weekend’s European Parliament elections. MSCI’s broadest index of Asia-Pacific shares outside Japan was virtually flat, a sliver above from a four-month low touched on Friday, with market holidays in the U.S. and U.K. denting trading volumes. Casting a shadow over many share markets were worries the China-U.S. trade conflict was turning into a technology cold war between the world’s two largest economies. Japan’s Nikkei average was up 0.3% by its midday break. Chinese shares began Monday higher but then slipped, with the benchmark Shanghai Composite down 0.3% and the blue-chip CSI 300 falling 0.6%. Hong Kong’s Hang Seng dropped 0.5%..
Pakistan Post increases revenue by Rs6b
Federal Minister for Communications and Postal Services Murad Saeed has said under the dynamic leadership of Prime Minister Imran Khan, Pakistan Post had increased its revenue by Rs6 billion within a year. Its revenue has increased from Rs8 billion to Rs14 billion, he said. Similarly, other public sector organizations would also become profitable, he has said. The minister said the Pakistan Post would soon bring revolutionary changes in the Logistic Cell sector. Through E-Commerce, some 46,000 parcels had been transported to their destination, he added. The Pakistan Post , he said, asked the Pakistan Railways to give it one more carriage as its business had been increase from the past.
Hafeez Shaikh reviews budget proposals
Adviser to the Prime Minister on Finance, Revenue and Economic Affairs, Dr Abdul Hafeez Shaikh Sunday chaired a meeting to review Budget proposals. On the occasion, Federal Board of Revenue (FBR) Chairman Shabbar Zaidi gave a presentation about the budget proposals for the 2019-2020 and proposed various steps to expand the tax base and increase revenues, said a press statement issued by the Financce Ministry here. The Adviser directed FBR to make tax collection process further easier and initiate measures to broadening the tax base. The meeting was also attended by the Adviser to PM on Commerce, Textile, Industry and Production and Investment, Abdul Razak Dawood, Minister of State for Revenue, Muhammad Hammad Azhar and other senior officials of Finance Ministry and FBR.
British Airways’ return to help boost inbound tourism: PTDC
Pakistan Tourism Development Corporation (PTDC) Chairman Sayed Zulfikar Abbas Bukhari has said that the resumption of British Airways (BA) in Pakistan would help boost inbound tourism in the country recounting his government’s achievement on socio-economic front. The inflow of foreign tourist would surely increase in the country due to the entrance of United Kingdom’s second largest airline (BA) in Pakistan as it reflects improved security situation of the country, Zulfikar Bukhari, who also holds the portfolio of Special Assistant to Prime Minister on Overseas Pakistanis and Human Resource Development said Sunday. The airways would help Pakistan in its integration with rest of the world especially, establishing viable travel links with North America and Europe, he told APP here.
Businessmen pin hopes on Chinese vice president’s visit
Faisalabad Industrial Estate Development and Management Company (FIEDMC ) Chairman Mian Kashif Ashfaq Sunday said Vice President of China Wang Qishan’s visit to Pakistan would herald new vistas of economic cooperation and a milestone in further cementing bilateral relationship between both the friendly countries on sound footings. Talking to media, Mian Kashif Ashfaq said that Pakistan under the dynamic leadership of Prime Minister Imran Khan was offering friendly environment for foreign investment,” they said. There was vast scope for Chinese private and public sector investment especially in the fields of energy, agriculture, livestock and IT, he added. He said that people of Pakistan always attached great importance to Chinese people as China was time tested friend of Pakistan.

EFOODS, NML, EPCL and SEARL would try to support the positive momentum while PSO, DGKC, SSGC and ASL would remain in laggards.

The Benchmark KSE100 Index is being capped by a resistant trend line at 35,800 points while a horizontal resistant region would try to cap current bullish rally at 36,086 points. Daily and weekly momentum indicators are in bullish mode while hourly momentum indicators have reached oversold region and these would try to push index downward for an intraday correction therefore it's expected that index may would try to slip for an intraday correction and in that case 35,500 and 35,250 would resist against any kind of bearish pressure. It's recommended to stay cautious and post strict trailing stop loss on existing long positions while to initiate new positions it's recommended to wait for a dip. On short term basis index have formatted a bullish engulfing pattern on weekly chart which would try push index towards 37,000 & 37,500 points in coming days.