PSX Daily Market Review - 28th Feb 2019

Trading volume at PSX floor increased by 111.79 million shares or 69.05% on DoD basis, whereas the benchmark KSE100 index opened at 38,630.12, posted a day high of 38,857.90 and a day low of 37,330.38 points during last trading session while session suspended at 38,692.69 with net change of -128.98 points and net trading volume of 178.89 million shares. Daily trading volume of KSE100 listed companies increased by 74.07 million shares or 70.65% on DoD basis.
Foreign Investors remained in net selling positions of 3.53 million shares and net value of Foreign Inflow dropped by 0.61 million US Dollars. Categorically, Foreign Corporate remained in net selling positions of 4.62 million shares but Foreign Individuals and Overseas Pakistani Investors remained in net buying positions of 0.05 and 1.03 million shares respectively. While on the other side Local Companies, Banks, NBFCs and Insurance Companies remained in net buying positions of 9.41, 7.41, 1.41 and 14.47 million shares but Local Individuals, Mutual Fund and Brokers remained in net selling positions of 23.33, 5.92 and 1.46 million shares respectively.

Asian stocks shaky as Sino-U.S. trade optimism retreats
Asian stocks struggled for traction on Thursday after cautious comments from U.S. Trade Representative Robert Lighthizer deflated some optimism that China and the United States were closing in on a trade deal. The dollar held onto its gains from Wednesday, supported by higher bond yields. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped in and out of the red, while South Korea’s KOSPI shed 0.25 percent and Japan’s Nikkei lost 0.35 percent.
Tea imports up 2.15pc to $347.305m
Pakistan imported tea worth $347.305 million during the first seven months of the current fiscal year, showing growth of 2.15 percent when compared to the imports of $339.992 million during the corresponding period of last year. According to Pakistan Bureau of Statistics (PBS), Pakistan imported 132,748 metric tons of tea during July-January (2018-19) against the imports of $339,992 metric tons during July-January (2017-18), showing increase of 20.52 percent in terms of quantity, the PBS data revealed.
APBF for raising exports to 11pc of GDP
The All Pakistan Business Forum has recommended the government raise exports to 11 percent of the GDP till the end of its term with a keen focus on value addition for a sustainable economic trajectory. APBF president Syed Maaz Mahmood believes that IMF should be a stop-gap arrangement to reduce the magnitude of this bailout, which may have forced excessive devaluation, steep monetary tightening, cut in development and defence expenditures. He said the sustainable solution to Pakistan’s problems lies in the structural reforms. Loans simply serve to bridge the gap until the effects of the reforms take effects. The problem occurs if the country takes loans but fails to reform, he added.
Ogra wants Rs9.12pc hike in POL prices
The Oil and Gas Regulatory Authority (Ogra) has recommended up to Rs 9.12 per litre increase in the price of petroleum products for the month of March. In a summary to the Petroleum and Finance Division, Oil and Gas Regulatory Authority has recommended an increase in the prices of almost all the petroleum products, it is learnt reliably here Wednesday. Ogra has recommended an increase of Rs 9.12 per litre in the price of High Speed Diesel (HSD), Rs4.71 in the price of Petrol, Rs 8.06 per litre in Kerosene Oil and Rs 5.12 in Light Diesel Oil, said the source.
Pakistan borrows $2.7b in 7 months
Pakistan borrowed $2.7 billion loan from multilateral and bilateral sources in seven months of the ongoing fiscal year, which were lesser than the need of the government. Multilateral and bilateral sources are not releasing sufficient borrowing to Pakistan in the absence of International Monetary Fund (IMF)’s programme. The $2.7 billion loan disbursements from July through December are equal to only 27.8 percent of the original annual estimates. Pakistan had estimated to receive $10 billion as foreign assistance from bilateral, multilateral and banking sources during FY2019. In January alone, the country had borrowed only $381.5 million from aforesaid sources.

The Benchmark KSE100 index have bounced back after retesting its supportive region during last trading session which falls on a rising trend line despite of a sever political & security situation which indicates that market sentiments are still positive and index would try to recover if it would succeed in closing above 39,000 points during current trading session because a morning shooting star would be formatted on daily chart after closing above this level which would try to push index in upward direction. On flip side its recommended to stay cautious below 38,400 points because breakout of that region will call for 37,000 and 36,200 points.