PSX Daily Market Review - 28th March 2019

Trading volume at PSX floor increased by 142.28 million shares or 164.70% on DoD basis, whereas the benchmark KSE100 index opened at 38,382.06, posted a day high of 38,981.12 and a day low of 38,329.13 points during last trading session while session suspended at 38,965.01 with net change of 635.88 points and net trading volume of 91.76 million shares. Daily trading volume of KSE100 listed companies increased by 40.90 million shares or 80.41% on DoD basis.
Foreign Investors remained in net selling positions of 49.41 million shares and net value of foreign inflow dropped by 3.94 US Dollars. Categorically, Foreign Individual remained in net buying positions of 0.29 million shares but Foreign Corporate and Overseas Pakistanis remained in net selling positions of 0.34 and 49.36 million shares. While on the other side Local Companies, Mutual Fund, Brokers and Insurance Companies remained in net buying positions of 47.52, 6.50, 3.05 and 0.31 million shares respectively but Local Individuals, Banks and NBFCs remained in net selling positions of 5.92, 2.09 and 0.09 million shares respectively.

Exclusive: China makes unprecedented proposals on tech transfer, trade challenges remain - U.S. officials
The United States and China have made progress in all areas under discussion in trade talks, with unprecedented movement on the touchy issue of forced technology transfers, but sticking points remain, U.S. officials told Reuters on Wednesday. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin arrive in Beijing on Thursday for a new round of talks with Chinese officials to work out a deal that would end a months-long trade war. The in-person talks, which will be followed by a round in Washington next week, are the first face-to-face meetings the two sides have held in weeks after working past an initial end-of-March goal for a summit between U.S. President Donald Trump and Chinese President Xi Jinping to sign a pact. Reuters spoke to four senior administration officials for this report.
FBR recovers Rs5.2bn from tax defaulters
The Federal Board of Revenue (FBR) has claimed to have recovered up to Rs5.2 billion from its ongoing drive against tax defaulters, non-compliant high-net-worth individuals, besides it has acted against 4,512 bank accounts, properties, vehicles and arrested nine defaulters. According to official data released at a press briefing in Islamabad on Wednesday, the FBR said that the drive against tax defaulters in all major cities across Pakistan “would continue in coming months especially against the tax defaulters and the persons out-of-the-tax-net.” Giving details in a written statement issued after the briefing, the FBR said the drive was especially focused on three important areas.
ECC okays additional LNG imports, committee to oversee pricing issues
The government on Wednesday decided in principle to import about 200 million cubic feet per day (mmcfd) of additional LNG from Qatar and will constitute Price Negotiation Committee (PNC) for talks on gas sales and purchase agreement (GSPA). The decision was taken at a meeting of the Economic Coordination Committee (ECC) of Cabinet presided over by Finance Minister Asad Umar. It was informed by the Petroleum Division that a broad-based PNC had arranged about 500mmcfd of LNG from Qatar under a 15-year contract at about 13.37pc of Brent under the previous government. The Petroleum Division recommended that similar arrangement should be in place to negotiate final price under government-to-government basis because Pakistan needed additional quantities to fully utilise processing capacity of the two LNG terminals at cost-effective basis and meet local demand.
IMF mission chief, State Bank governor discuss economy
Inter­national Monetary Fund (IMF) Mission Chief for Pakistan Ernesto Ramirez Rigo held a meeting with Governor State Bank of Pakistan Tariq Bajwa and other senior officials on Wednesday. According to a press release issued by the IMF, Rigo held introductory meetings with the Pakistani authorities on March 26 and 27. Discussions focused on recent economic developments and prospects for Pakistan in the context of ongoing discussions toward securing an IMF bailout. This is his first visit to the country since assuming the role earlier this month.
Industrialists complain against KE
Indus­trialists have lodged a complaint against K-Electric Ltd for charging higher tariffs in despite direction from the government’s notification to charge concessionary rates to the export-oriented industry. Sindh Industrial Trading Estate (Site) Association of Industry Chairman Saleem Parekh also urged Finance Minister Asad Umar to take notice of KE’s violations. He said the support package provided by federal government to zero-rated export-oriented industry through SRO12(I) is being violated by the utility company. Moreover, Parekh claimed that KE is billing fixed charges, government duties and taxes in addition to the 7.5cents/kWh being charged on the variable charges whereas Hyderabad Electric Sup­ply Company, Faisa­labad Electric Supply Company and Lahore Electric Supply Company are billing their industrial consumers at 7.5cents/kWh on the total bill.

The Benchmark KSE100 Index have succeeded in penetration above its major resistant trend line during last trading session and also have succeeded in closing above 38,550 points where a horizontal resistant region was capping it. As of now index have resistant regions ahead at 39,053 and 39,465 points where it’s being capped by two strong horizontal resistant regions respectively. Daily momentum indicators have succeeded in generating bullish crossovers which is positive for bulls and it’s expected that if index would succeed penetration above 39,053 points on hourly chart then daily momentum would push it further upside and this rally may lead towards 39,465 points. While on flipside index have supportive regions standing at 38,500 and 38,100 points. It’s recommended to hold long positions if index would succeed in penetration above 39,053 points on hourly chart.