PSX Daily Market Review - 29th July 2019

Trading volume at PSX floor increased by 23.05 million shares or 36.29% on DoD basis, whereas the benchmark KSE100 index opened at 32,438.51, posted a day high of 32,439.16 and a day low of 32,031.98 points during last trading session while session suspended at 32,103.27 points with net change of -343.13 points and net trading volume of 54.38 million shares. Daily trading volume of KSE100 listed companies increased by 12.92 million shares or 23.76% on DoD basis.
Foreign Investors remained in net selling positions of 1.16 million shares but net value of Foreign Inflow increased by 0.74 million US Dollars. Categorically, Foreign Corporate investors remained in net selling positions of 3.34 million shares but Overseas Pakistanis remained in net long positions of 2.18 million shares. While on the other side Local Individuals, Banks and Insurance Companies remained in net long positions of 3.17, 2.47 and 0.7 million shares respectively but Local Companies, Mutual Funds and Brokers remained in net selling positions of 1.43, 3.54 and 0.33 million shares.

Asian shares drift into trade talks, Fed test
Asian shares drifted lower on Monday as markets anxiously counted down to a likely cut in U.S. interest rates this week with much riding on whether or not the Federal Reserve signals yet more are in the pipeline. U.S. and Chinese trade negotiators also meet in Shanghai this week for their first in-person talks since a G20 truce last month, but expectations are low for a breakthrough. Data on the weekend showed profits earned by China’s industrial firms contracted in June, fuelling concerns that the bruising trade war will drag on economic growth. “We remain cautiously optimistic that both sides can agree on a narrow agreement that addresses important trade-related issues, such as U.S. demands to increase exports,” said analysts at Barclays in a note. “That said, we are skeptical about the prospects of a broader agreement that includes the more challenging security-related issues.”
Rs200bn to be raised for circular debt payment
Amid ongoing probes into dollar-based tariff indexations, ‘unnatural profits’ in the power sector and last year’s capacity payments of over Rs466 billion, the government will be raising about Rs200bn through Islamic bonds next month to reduce circular debt after securing about Rs11bn relief from independent power producers (IPPs). The finance ministry has called a meeting of presidents of 10 commercial banks in the country on Monday (today) to finalise a term sheet for Pakistan Energy Sukuk-II amounting to Rs200bn for power sector liquidity through Power Holding (Pvt) Limited — an assetless shell company of the power division. Finance Secretary Naveed Kamran Baloch will lead the government side. The consortium, led by Meezan Islamic Bank, comprises nine other commercial banks — Habib Bank, Bank Alfalah, Bank Islami, Dubai Islamic Bank, Bank Al-Habib, Bank Albaraka, National Bank of Pakistan, United Bank and Faisal Islamic Bank. This will be the second Sukuk financing worth Rs200bn for the power sector in less than six months.
Nepra to operationalise regional offices early next month
The National Electric Power Regulatory Authority (Nepra) will operationalise all of its regional offices at Discos level by early next month, it is learnt reliably. “We have Nepra’s regional offices in all the provincial metropolitan cities and now will establish offices at the Distribution Companies (Discos) level, official source told The Nation here Sunday. “Earlier, the provincial NEPRA offices were taking care of the Discos located in the provincial limits. For Khyber Pakhtunkhwa and Balochistan we don’t need to set up new Nepra offices as each the province has one Disco and the existing Nepra’s offices will work with Peshawar Electric Supply Company (Pesco) and Quetta Electric Supply Company (Qesco),” said the sources.
Chinese firms keen to invest in textile sector
A delegation of representatives from China’s top textile companies met Provincial Minister for Industry, Trade, Information & Culture Mian Aslam Iqbal on Sunday. The objective of the meeting was their keen interest in developing business in the textile sector of Punjab that would change the economic landscape of the country. Head of the Chinese companies showed a keen interest in making investments in the textile sector of Punjab. They said that Punjab is a very attractive place for investment and our companies will invest here. The Industries Minister welcomed the delegation and said the government is focusing on promoting export-led industry and import substitution for sustainable economic growth. He stated that China can help increase Pakistan’s exports by relocating export-oriented industries and initiating joint ventures in various fields.
China varsity to organise tourism conference for Pakistan
Senior Researcher on One Belt One Road project and Deputy Dean of International Studies, Sichuan University of China Professor Dr Song Zhihui has said that a tourism promotion conference for Pakistan would be organised to highlight its tourism potential. While addressing the business community at Islamabad Chamber of Commerce and Industry, he said China wanted to enhance its imports from Pakistan that would increase Pakistan’s exports. He said that 2nd phase of China-Pakistan Economic Corridor was very important for Pakistan as it would give boost to industrial cooperation.

The Benchmark KSE100 index have not succeed in penetration above its initial resistant region of 32,500 points during last two trading session and have got pressure from same region. Daily and weekly momentum indicators have turned their direction towards bearish side and it's expected that index would now try to touch its supportive region of 31,700 points in this week, if index would slide below its supportive region of 31,700 points then a new low would be expected around 31,200 points. While on flip side index would face resistances at 32.500 and 32,800 points in case of reversal. It's recommended to practice caution during current trading session as market would show some volatility with low volumes.