PSX Daily Market Review - 29th May 2019

Trading volume at PSX floor increased by 27.08 million shares or 21.62% on DoD basis, whereas the benchmark KSE100 index opened at 35,690.61, posted a day high of 35,709.12 and a day low of 34,900.07 points during last trading session while session suspended at 34,949.28 with net change of -748.09 points and net trading volume of 122.79 million shares. Daily trading volume of KSE100 listed companies increased by 28.28 million shares or 29.92% on DoD basis.
Foreign Investors remained in net selling positions of 0.37 million shares and net value of Foreign Inflow dropped by 1.12 million US Dollars. Categorically, Foreign Individuals, Corporate and Overseas Pakistanis Investors remained in net selling positions of 0.11, 0.12 and 0.14 million shares. While on the other side Local Companies, Banks and Insurance Companies remained in net buying positions of 14.94, 3.93 and 4.21 million shares respectively but Local Individuals, NBFCs, Mutual Fund and Brokers remained in net selling positions of 2.68, 3.47, 5.03 and 9.96 million shares.

Asian shares falter, bonds rally on global growth fears
Asian shares stumbled on Wednesday and global bonds rallied as investors fretted over the outlook for world growth with trade tensions between Washington and Beijing showing no signs of abating. MSCI’s broadest index of Asia-Pacific shares outside Japan was last down 0.4% after three straight days of gains. South Korea’s KOSPI and Australian shares were 0.9% lower each. Japan’s Nikkei faltered 1.4% while E-Minis for the S&P 500 were 0.2% lower. Risk aversion has increased globally in recent days as fears of world recession resurface amid disappointing macro data in major economies. Wins for eurosceptic parties in EU elections as well as snap poll in Greece and political turmoil in Austria have added to the gloomy outlook.
Govt borrowed mammoth $15.84b in ten months
Pakistan borrowed mammoth $15.84 billion in ten months of the current fiscal year to sustain its foreign exchange reserves that are tumbling due to the repayment and financing of current account deficit. Pakistan’s total foreign loans for balance of payments support, budgetary support and project financing stood at $15.84 billion during ten months (July to April) of the current fiscal year. The country’s borrowing from bilateral, multilateral and banking sources stood at $8.837 billion. Similarly, Pakistan had also borrowed $7 billion from three friendly countries in current financial year. China gave $2 billion in loan in July last year, followed by $3 billion from Saudi Arabia and $2 billion from the United Arab Emirates (UAE).
Nepra approves 55 paisas per unit hike in power tariff
The National Electric Power Regulatory Authority (Nepra) on Tuesday allowed tariff increase of Re 0.55 per unit for ex-Wapda distribution companies on account of fuel price adjustment for April. This decision in this regard was made by NEPRA in a public hearing on the petition filed by the Central Power Purchasing Agency (CPPA) on behalf of the distribution companies (DISCOs). According to the petition filed by CPPA in April the cost of fuel was high while the power consumers were charged with low rates so this additional amount would be charged in the electricity bills of June 2019. It would cumulative impact of Rs5.2 billion. The adjustment will, however, not be applicable to lifeline consumers as well as K-Electric consumers.
ICCI calls for cut in import duty on industrial raw material in budget
President Islamabad Chamber of Commerce & Industry (ICCI) Ahmed Hassan Moughal has said that the industry was importing lot of raw material for manufacturing of products, but due to sharp fall in value of rupee, the import of industrial raw material has become costly leading to enhanced production cost. In a statement issued here on Tuesday, Ahmed Hassan Moughal called upon the government to make further cut in import duty on industrial raw material in the forthcoming budget so as to bring down production cost and help in improving exports.
Petrol price likely to go up by Rs9 before Eid
The government is likely to increase prices of petroleum products by as much as Rs12 per litre from June 1, just days ahead of this year’s Eidul Fitr. The Oil and Gas Regulatory Authority (OGRA) will forward its summary proposing new rates on May 30 while the new prices will take effect from June 1 after approval by the prime minister, sources told The Express Tribune on Tuesday. The price of petrol may be increased by Rs9.50 while high speed diesel (HSD) may go up by Rs11.5. Similarly, price for light diesel oil (LDO) is likely to increase by Rs7.85 while kerosene may see a rise of Rs12 per liter.

PAEL, DGKC, ISL and PSO would try to lead the positive momentum while SSGC and UBL would reamin in laggards during current trading session.

The Benchmark KSE100 Index have bounced back after getting resistance from a horizontal resistant region during last trading session and it have created an evening shooting star on daily chart which indicates that a bearish pressure maybe witnessed in coming trading sessions, but chances of cheat pattern are still intact and evident because index could start a reversal after filling its gap on daily chart. As of now index have supportive regions ahead at 34,700 & 34,400 points while on flipside index would face resistances at 35,500 and 35,860 points. It's recommended to start buying in chunks on dip with strict stop loss because index seems recovering after a dip in a day or two and this time index would penetrate its previous resistant region of 36,000 points and may target 37,600 points.