PSX Daily Market Review - 28th June 2019

Trading volume at PSX floor dropped by 24.66 million shares or 15.44% on DoD basis, whereas the benchmark KSE100 index opened at 34,101.39, posted a day high of 34,261.92 and a day low of 33,521.38 points during last trading session while session suspended at 33,774.42 points with net change of -314.14 points and net trading volume of 111.73 million shares. Daily trading volume of KSE100 listed companies dropped by 3.75 million shares or 3.25% on DoD basis.
Foreign Investors remained in net buying positions of 57.71 million shares and net value of Foreign Inflow increased by 4.47 million US Dollars. Categorically, Foreign Individual and Overseas Pakistani remained in net buying positions of 0.09 and 60.15 million shares but Foreign Corporate investors remained in net selling positions of 2.54 million shares. While on the other side Local Individuals and NBFCs remained in net buying positions of 46.13 and 0.18 million shares respectively but Local Companies, Banks, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 0.33, 5.59, 20.68, 81.48 and 0.54 million shares.

Asian shares falter as Trump-Xi trade jitters build
Asian shares stumbled on Friday amid rising doubts that a highly anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping this weekend could lead to an easing of trade tensions. Uncertainty over whether the talks will produce progress in ending the year-long trade war between the world’s two largest economies comes amid signs of rising risks to global growth. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.3%, with weakness in Chinese equities weighing on the broader region. Japan's Nikkei stock index .N225 was 0.55% lower.
GDP to further shrink to 2.7pc in FY2019-20: Fitch Solutions
Pakistan’s GDP would further plunge to 2.7 percent in next fiscal year (2091-20) mainly due to the tighter monetary and fiscal policies as result of the International Monetary Fund (IMF)’s bailout package, said Fitch Solutions in its latest analysis of Pakistan’s economy. The macro research arm of the global credit ratings agency revised its forecast for Pakistan’s real GDP growth to come in at 3.2 percent in outgoing fiscal year FY18/19 and 2.7 percent in upcoming fiscal year FY19/20 from 4.4 percent in FY18/19 and 4 percent in FY19/20 previously. This is mainly due to the tighter monetary and fiscal policies amid an already subdued economic growth outlook.
Govt hopes IMF will approve $6b bailout package on July 3
Pakistan believes that International Monetary Fund (IMF) would approve bailout package worth of $6 billion in its executive board meeting on July 3, 2019 as Islamabad has taken all advance actions agreed with the Fund. Pakistan had agreed with the IMF for taking tough economic decisions before the Fund executive board meeting, which would consider approving loan programme for Islamabad. An IMF mission led by Ernesto Ramirez Rigo visited Pakistan from April 29 to May 11, to discuss IMF support for the authorities’ economic reform programme. On 12 May 2019, Pakistani authorities and the IMF team reached a staff level agreement. The agreement is subject to IMF Executive Board approval, which would meet on July 3.
PM Imran hints at extension in June 30 deadline for Asset Declaration Scheme
Prime Minister Imran Khan on Thursday hinted at an extension in the Asset Declaration Scheme in order to avoid inconvenience caused to citizens by the June 30 deadline. The prime minister made the remark while interacting with members of the business community on a special PTV News telethon via video link.. Tycoon Aqeel Karim Dedhi asked the premier whether he would consider an extension in the deadline. "I think the number of people interested in the scheme could be much larger if there was some clarification on what the purpose of this is, whether people have to deposit cash by June 30, whether this deadline can be extended by a couple of months. For instance, if you could register first and make the 4 per cent penalty payment, but deposit cash in the bank later?"
Govt announces 'special campaign' to ensure implementation of price controls
Prime Minister Imran Khan on Thursday announced his intent to launch a special campaign targeted at ensuring that state departments improve their efficiency in controlling prices. The announcement came via a statement released by the Prime Minister's Office, which also outlined a strategy to implement price controls. The nine-point strategy, quoted verbatim, is given as under: A strategy shall be devised by all concerned stakeholders to implement price control laws effectively from the wholesale markets to retail shops. Prime and Market Control Committees shall be made more effective and should take stern actions against the perpetrators under law. Field Officers shall frequently visit the wholesale markets and be present at the time of auctions to determine realistic rates. All the Provincial Secretaries shall frequently have a surprise check in the districts. Special Branch shall report daily the implementation of directives to the Chief Secretary and the Chief Minister concerned. Mechanism be developed to check unscrupulous elements which charge un-proportionate prices without sufficient cause. Strict action shall be taken against hoarding. Price Control Committees shall notify the rates of essential commodities regularly and the same shall be implemented effectively. A performance evaluation mechanism, with reward and punishment be developed to ensure success of this campaign. The prime minister has directed that progress on the above directions be reported to him within seven days.

The Benchmark KSE100 index is not being able to maintain its supportive region since start of this week and bears are trying to dominate in market, as of now it's expected that index would try to pull back during current trading session because hourly stochastic have generated a bullish crossover and index is trying to maintain above 33,500 points since last two trading sessions. It's recommended to stay cautious and start buying in chunks with strict stop loss and if index would not succeed in maintaining above 33,400 points then a dip towards 32,960 points could be witnessed therefore trading with trailing stop loss is recommended.
As of now PSO would try to start a pull back before 162 Rs./share because at that region it would try to find a support from a horizontal supportive region, while ATRL would try to continue its bullish pull back because daily momentum indicators of this script have changed its direction which may lead it towards 79 and 83 Rs./share. DGKC and MLCF also would try to start a pull back before 53.30 and 22.30 Rs/share respectively therefore it's recommended to start buying on dips.