PSX Daily Market Review - 29th March 2019

Trading volume at PSX floor dropped by 96.52 million shares or 42.21% on DoD basis, whereas the benchmark KSE100 index opened at 38,960.67, posted a day high of 38,965.01 and a day low of 38,418.90 points during last trading session while session suspended at 38,552.95 with net change of -412.06 points and net trading volume of 54.34 million shares. Daily trading volume of KSE100 listed companies dropped by 37.41 million shares or 40.77% on DoD basis.
Foreign Investors remained in net buying positions of 4.83 million shares and net value of foreign inflow increased by 2.12 US Dollars. Categorically, Foreign Individual, Corporate and Overseas Pakistanis investors remained in net buying positions of 0.18, 2.73 and 1.92 million shares. While on the other side Local Individuals, Banks, NBFCs and Brokers remained in net buying positions of 3.83, 2.97, 0.49 and 2.65 million shares respectively but Local Companies, Mutual Fund and Insurance Companies remained in net selling positions of 14.10, 1.06 and 0.94 million shares respectively.

Asian stocks gain on hopes of progress in U.S.-China trade talks
Asian shares rose on Friday, led by a surge in Chinese equities, on hopes that Washington and Beijing are making progress in trade talks, while global bond yields moved higher after a prolonged slide on worries about the economic outlook. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.5 percent while Japan’s Nikkei added 1 percent. The Shanghai Composite Index climbed more than 2 percent. The mood in the markets was brighter after U.S. officials said China has made proposals in trade talks with the United States on a range of issues that go further than it has before, including on forced technology transfer. U.S. Treasury Secretary Steven Mnuchin said on Friday he had a “productive working dinner” the previous night in Beijing, kicking off a day of talks aimed at resolving the bitter trade dispute between the world’s two largest economies.
IMF bailout package likely by mid-May, says finance minister
Pakistan is likely to secure a bailout package from the International Monetary Fund (IMF) of between $6 billion and $12bn by the middle of May, Finance Minister Asad Umar has said. In an interview with the Financial Times in Islamabad this week after a meeting with the IMF, he said he hoped an agreement would be reached with the Fund by “late April, first half of May”. The package would be of between $6bn and $12bn. “We’re approaching the landing zone,” said Mr Umar. “The gap between our position and the IMF’s is significantly less than what it was a few months back.”
FBR identifies 6,800 non-taxpayers in three mega cities
The Federal Board of Revenue (FBR), in its drive to broaden the tax base of the country, has identified 6800 non-taxpayers in commercial plazas and shopping malls in three mega cities of Karachi, Lahore and Islamabad. Member (Inland Revenue - Operations) FBR Seema Shakil on Thursday said that FBR had issued notices to 6400 non-taxpayers in the first stage. As many as 2671 of them had filed their income tax returns and Rs1.3 billion tax had been recovered from them. Around 44,00 banks accounts had been attached and 78 properties and 46 vehicles would be auctioned, Member (Inland Revenue – Operations) said while addressing a press conference along with Dr Hamid Ateeq Sarwar, Member (Inland Revenue - Policy).
Govt eyes $2bn from Haveli, Balloki power plants sell-off
The National Assembly’s Standing Committee on Privatisation was informed on Thursday that government expects to fetch $2 billion from the privatisation of 1,223MW Balloki and 1,230MW Haveli Bahadur Shah power plants. An evaluation committee has been formed in the Privatisation Commission to evaluate expressions of interest, technical and financial proposals submitted by interested parties for hiring of financial advisers, Secretary Privatisation Rizwan Malik informed the committee. The Cabinet Committee on Privatisation has approved initiation of the appointment of financial advisers. The power plants are owned by the National Power Management Company.
Steel Mill chief sacked in bizarre episode
Contrary to conventions, the Ministry of Industries and Production has removed Pakistan Steel Mills (PSM) chairman and held the board meeting against the proscribed rules. An official of the production ministry said the notification to withdraw Engineer M. A. Jabbar from his board membership was issued with formal approval of the Cabinet Division. He alleged that the notification was issued on directives of Adviser to Prime Minister on Commerce and Industries Abdul Razak Dawood. However, Mr Dawood refused to comment on Dawn’s query over the removal procedure used to sack Mr Jabbar.

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.