PSX Daily Market Review - 28th Aug 2019

Trading volume at PSX floor dropped by 2.31 million shares or 1.89% on DoD basis, whereas the benchmark KSE100 index opened at 30,458.31, posted a day high of 30,641.84 and a day low of 29,952.73 points during last trading session while session suspended at 30,584.85 points with net change of 64.25 points and net trading volume of 102.46 million shares. Daily trading volume of KSE100 listed companies increased by 9.80 million shares or 10.58% on DoD basis.
Foreign Investors remained in net buying positions of 6.48 million shares and net value of Foreign Inflow increased by 0.10 million US Dollars. Categorically, Foreign Individual, Foreign Corporate and Overseas Pakistani investors remained in net buying positions of 0.02, 5.16 and 1.30 million shares respectively. While on the other side Local Individuals, Banks and Insurance Companies remained in net long positions of 11.23, 5.08 and 0.09 million shares but Local Companies, NBFCs, Mutual Funds and Brokers remained in net selling positions of 5.95, 0.01, 9.86 and 8.12 million shares respectively.

Asian stocks find modest support on firmer U.S. futures
Asian shares eked out meager gains on Wednesday, as higher Wall Street futures provided some relief for investors after an overnight U.S. selloff, though deeper worries about the global economy are likely to keep a lid on sentiment. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.03%, Japan's Nikkei .N225 rose 0.04% and Australia's shares rose 0.07%. The U.S. yield curve inversion deepened on Tuesday to levels not seen since 2007, which sent Wall Street stocks lower. The S&P 500 .SPX fell 0.33%. Gold, which is bought as a safe haven during times of economic uncertainty, traded close to a six-year high. “Bonds are rallying and there is limited upside for stocks right now,” said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co in Tokyo. “But I don’t want to give up on equities just yet. The U.S. Federal Reserve and officials in other countries simply have to do more to stimulate their economies, which will eventually prevent the bottom from falling out.”
Budget deficit skyrocketed to record Rs3.44 trillion in last fiscal year
Pakistan’s budget deficit touched all-time high of Rs3.44 trillion in last fiscal year as the PTI-led government failed to enhance tax collection and reduce expenditures despite announcing two mini budgets and so-called austerity measures. The country’s expenditures have enhanced to Rs8.345 trillion as compared to the revenues of Rs4.9 trillion during the last fiscal year. The country’s budget deficit was recorded at 8.9 percent of the gross domestic product (GDP) in the fiscal year 2018-19—the first year of the PTI government in office. The deficit was only 6.6 percent of the GDP in the preceding year, according to the latest data of ministry of finance. The deficit had widened due to massive shortfall of Rs570 billion in tax collection and whopping increasing in expenditures.
PALS Rescue initiates Safe Canal Project in Khairpur
Pakistan Life Saving Foundation (PALS Rescue) has initiated its ‘Safe Canal Project’ that will provide four of Khairpur’s villages protection against drowning. The pilot project was recently inaugurated by Dr Nafisa Shah, MNA and Vice President of Pakistan Peoples Party, Sindh Chapter. The Safe Canal Project aims at creating a safety net for local villagers who are at risk of drowning, especially while performing chores associated with canal water. Under this project, Khairpur’s villagers have been provided with safety equipment to safeguard themselves, especially women and children against accidents which had earlier been prevalent along canal banks.
20 blocks to be auctioned for oil and gas exploration
The Petroleum Division is planning to hold open bidding for 20 new oil and gas exploration blocks by the year end, aimed at making the country self-sufficient in the energy sector. The government, in the last year, awarded five new exploration blocks through a transparent bidding process, a senior official privy to petroleum sector developments said on Tuesday. He said the government was preparing a summary for creation of new oil and gas exploration block in potential areas of erstwhile Federally Administered Tribal Areas (FATA) and Balochistan, which would be presented before the Council of Common Interests for approval.
Judge orders drugmaker to pay $572 million in opioid lawsuit
An Oklahoma judge on Monday found Johnson & Johnson and its subsidiaries helped fuel the state’s opioid crisis and ordered the consumer products giant to pay $572 million, more than twice the amount another drug manufacturer agreed to pay in a settlement. Cleveland County District Judge Thad Balkman’s ruling followed the first state opioid case to make it to trial and could help shape negotiations over roughly 1,500 similar lawsuits filed by state, local and tribal governments consolidated before a federal judge in Ohio. “The opioid crisis has ravaged the state of Oklahoma,” Balkman said before announcing the judgment. “It must be abated immediately.” An attorney for the companies said they plan to appeal the ruling to the Oklahoma Supreme Court. Before Oklahoma’s trial began May 28, the state reached settlements with two other defendant groups — a $270 million deal with OxyContin-maker Purdue Pharma and an $85 million settlement with Israeli-owned Teva Pharmaceutical Industries Ltd.

The Benchmark KSE100 index have succeeded in starting a pull back after getting support from a horizontal supportive region and completing its 61.8% correction during last trading session. As of now it's expected that index would index would try to continue its bullish momentum towards 30,860 and 31,000 points and would try to format a morning star on daily chart during current trading session but it's recommended to stay cautious because chances of formation of a cheat pattern are evident after completion of morning star until index would close above 31,700 points therefore it's recommended to start profit taking once index would reach in 31,200-31,500 points region but before that it may face strong resistances at 30,860 and 31,200 points while on flipside index would try to find supports at 30,200 and 29,700 points in case of any bearish pressure.

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