PSX Daily Market Review - 2nd April 2019

Trading volume at PSX floor dropped by 71.88 million shares or 52.19% on DoD basis, whereas the benchmark KSE100 index opened at 38,633.56, posted a day high of 38,649.34 and a day low of 38,211.08 points during last trading session while session suspended at 38,354.85 with net change of -294.49 points and net trading volume of 39.70 million shares. Daily trading volume of KSE100 listed companies dropped by 43.07 million shares or 52.04% on DoD basis.
Foreign Investors remained in net buying positions of 0.99 million shares and net value of foreign inflow increased by 0.45 US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis investors remained in net buying positions of 0.02 and 3.28 million shares but Foreign Corporate remained in net selling positions of 2.31 million shares. While on the other side Local Individuals and Banks remained in net buying positions of 5.96 and 2.13 million shares respectively but Local Companies, NBFCs, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 3.38, 0.10, 3.67, 0.30 and 1.97 million shares respectively.

Manufacturing rebound lifts Asian shares to seven-month highs
Asia shares extended their rally on Tuesday as positive Chinese and U.S factory activity surveys aided investor confidence, and the ebbing concerns over the global economy spurred selling of safe-haven U.S. bonds as yields rose from 15 month troughs. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent, hitting a seven-month high after rallying more than one percent in the previous session. Australian shares gained half a percent and Japan’s Nikkei advanced 0.3 percent, extending its gains for a third session. The Shanghai Composite Index climbed 0.1 percent while Hong Kong’s Hang Seng Index was flat. Wall Street shares jumped on Monday, with the S&P 500 and Dow Jones Industrial Average both rising more than one percent, with the Dow lifted by sharp gains in Caterpillar Inc and Boeing Co.
LPG price increased by Rs41.2 per 11.8-kg cylinder
The government on Monday jacked up the price of indigenous liquefied petroleum gas (LPG) by Rs 3.50 per kg or Rs 41.27 per 11.8kg for the month of April 2019. According to the notification issued by Oil and Gas Regulatory Authority (OGRA), the LPG prices have been increased by Rs 3.5 per kg (2.7 percent) and the new price of 11.8kg domestic cylinder would be Rs1,563.92. In March the price of the cylinder will be Rs1,522.65 per cylinder. After the Ogra’s decision, the price of commercial cylinder had gone up by Rs 201 per cylinder.
Dollar rises to Rs142.7
The exchange rate of dollar increased by 11 paisas in interbank and traded at Rs140.89 against Rs140.78, State Bank of Pakistan (SBP) reported on Monday.owever, according to Forex Association of Pakistan, the open market rate of dollar closed at Rs142.70. The SBP reported that in interbank the price of Euro increased by 37 paisas after which it was traded at Rs158.41 against Rs 158.04 on last day. The price of Japanese yen loss 01 paisas after which it was traded at Rs1.26 against Rs1.27, while the increase of 95 paisas was witnessed in exchange rate of British Pound which was traded at Rs 184.35 against Rs183.40 on last day.
Inflation hits 9.4pc, highest in five years
Consumer prices influenced by faster rupee depreciation and rise in energy prices last month increased to their highest level in five years, the Pakistan Bureau of Statistics reported on Monday. Inflation measured through consumer price index (CPI) surged to 9.4pc in March 2019, the period when global oil prices started rising, undermining earlier gains. Over the past three months, prices of fresh vegetables, fruits and meat have posted persistent increase in major urban centres. The average inflation during the July-March period rose by 6.79pc on a yearly basis. While the government had projected 6pc annual inflation for the current financial year, the inflation had cros­sed the figure in February.
Finance minister defends increase in petroleum prices
The government on Monday defended its recent decision to increase petroleum prices by up to 6.45 per cent, saying the Oil and Gas Regulatory Authority (Ogra) had proposed double the price increase, but that was not fully passed on to consumers. Finance Minister Asad Umar spoke to journalists at a function organised by the State Bank of Pakistan (SBP) and said he was ready to debate with the opposition on the issue of oil prices in the past and the present. He argued that the difficulties of citizens and the economy would continue for at least two years before the government’s economic reforms took root.

The Benchmark KSE100 index have tried to bounce back after getting support from a rising trend line on daily chart but daily momentum indicators have turned their direction in bearish side. But it’s expected that intraday momentum would remain bullish because index have generated a bullish engulfing pattern on hourly chart during last trading session while on same time a bullish crossover have been generated by Stochastic and MAORSI on hourly chart which would try to push index in positive side. As long as supports and resistances are concerned index would find supports at 38,200 & 38,000 points while downward penetration of 38,000 points would call for 37,760 points while on flip side index would face resistances at 38,780 & 39,053 Points. It’s recommended to stay cautious while trading and post strict stop loss at short positions.