PSX Daily Market Review - 29th Aug 2019

Trading volume at PSX floor increased by 29.24 million shares or 24.41% on DoD basis, whereas the benchmark KSE100 index opened at 30,584.85, posted a day high of 31,112.82 and a day low of 30,551.91 points during last trading session while session suspended at 30637.71 points with net change of 52.86 points and net trading volume of 112.41 million shares. Daily trading volume of KSE100 listed companies increased by 9.94 million shares or 9.71% on DoD basis.
Foreign Investors remained in net selling positions of 2.67 million shares and net value of Foreign Inflow dropped by 1.21 million US Dollars. Categorically, Foreign Corporate investors remained in net selling positions of 3.51 million shares but Overseas Pakistanis remained in net long positions of 0.83 million shares. While on the other side Local Individuals, Companies and Banks remained in net long positions of 11.69, 3.59 and 1.67 million shares but Mutual Funds, Brokers and Insurance Companies remained in net selling positions of 11.12, 4.69 and 2.2 million shares respectively.

Stocks to rise as rate cuts beat back trade worries for now: Reuters poll
World stocks will keep rising over the coming year, according to the latest Reuters polls of strategists, but wild gyrations are likely in the lift from expected central bank policy easing and drag from developments in the U.S.-China trade war. Fears of a global economic slowdown as the world’s largest economies become more deeply locked in a tit-for-tat trade tariff war unnerved world stocks last year, with all the indexes polled by Reuters, barring India and Brazil, in the red in 2018. While stocks have recovered globally so far this year, the latest polls of nearly 300 equity strategists showed nine of the 17 indexes polled on would not recoup last year’s heavy losses by end-2019.
Zaidi vows to power on with more tax notices, declares ‘war’ on smugglers
Federal Board of Revenue (FBR) Chairman Shabbar Zaidi on Wednesday reiterated that government will not back away from taxing trade, services as part of the move to broaden country’s narrow tax base. Zaidi seems in no mood to back down from the aggressive documentation drive launched by the FBR under his stewardship. He emphasised these points while speaking at the 21st Management Association of Pakistan (MAP) Convention: Challenging Times, Winning Strategies, organised by the MAP in Karachi.
Tax exemption laws for Gwadar port, free zone approved
The government on Wednesday approved a number of amendments to laws aimed to provide exemptions from income tax, sales tax and custom duties to the Gwadar port and free zone until 2039, but could not decide how to give legal cover to the decision. A meeting of the Economic Coordi­nation Committee (ECC) of the Cabinet presided over by the Adviser to the Prime Minister on Finance and Revenue, Dr Abdul Hafeez Shaikh, asked the law ministry to come up with a legal way out — possibly a presidential ordinance or a bill — when the Federal Board of Revenue expressed its inability to issue a statutory regulatory order on the matter.
PM for steps to bring down prices of essential items
Prime Minister Imran Khan has directed the authorities concerned in the federal capital and two provinces — Punjab and Khyber Pakhtunkhwa — to thrash out a plan to provide relief to the masses and ensure stability in prices of essential commodities. “Such a system should be devised that ensures no additional burden is put on the common man,” the prime minister was quoted as saying during a meeting on Wednesday. According to the Prime Minister Office (PMO), the meeting was attended, among others, by Punjab Chief Minister Sardar Usman Buzdar, KP Chief Minister Mahmood Khan, Special Assistant to the Prime Minister on Information Dr Firdous Ashiq Awan, the federal secretary interior, the chief secretaries of Punjab and KP, and the chief commissioner of Islamabad.
ECC approves payment of salaries to employees of PSM, PMTF
The Economic Coordination Committee (ECC) of the Cabinet has approved to release salaries for the employees of Pakistan Machine Tool Factory (PMTF) and Pakistan Steel Mill (PSM). The ECC meeting, which was chaired by Dr Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance and Revenue, approved the proposals submitted by the Ministry of Industries & Production for payment of salaries to the employees of Pakistan Machine Tool Factory (PMTF) and Pakistan Steel Mill (PSM). The ECC has also approved a proposal of the Power Division for payment of electricity charges by the Government of Sindh as Thar subsidy for 4514 domestic consumers of Taluka Islamkot.

The Benchmark KSE100 index have neutralized its bullish impact by formatting a hammer on daily chart in response to previous bullish umbrella and have fallen after completing correction of its correction during last trading session. As of now index is caged in a narrow range of 30,000 till 31,200 points therefore it's recommended to stay cautious and post trailing stop loss on existing positions. For current trading session index would try to remain volatile and would remain range bound until it succeed in penetration above 31,200 or below 30,000 points. If index would succeed in sliding below 29,700 points then a serious fall could be witnessed in next week. Daily closing below 29,700 will increase chances of a weekly dark cloud which would try to push index downward.

^{To Open picture in original resolution right click image and then click open image in a new tab}