PSX Daily Market Review - 2nd July 2019

Trading volume at PSX floor dropped by 165.86 million shares or 77.54% on DoD basis, whereas the benchmark KSE100 index opened at 33,963.89, posted a day high of 34,068.58 and a day low of 33,825.85 points during last trading session while session suspended at 33,996.33 points with net change of 94.75 points and net trading volume of 37.68 million shares. Daily trading volume of KSE100 listed companies dropped by 111.56 million shares or 74.75% on DoD basis.
Foreign Investors remained in net buying positions of 1.25 million shares and net value of Foreign Inflow increased by 1.02 million US Dollars. Categorically, Foreign Individual remained in net selling positions of 0.05 million shares but Foreign Corporate and Overseas Pakistani investors remained in net buying positions of 1.17 and 0.13 million shares. While on the other side Local Individuals, Local Companies, NBFCs, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 0.41, 0.74, 0.08, 0.42, 2.57 and 0.06 million shares respectively but Banks remained in net buying positions of 2.39 million shares.

Asian shares cautious as weak manufacturing data stoke growth worries
Asian shares were choppy on Tuesday as weak global manufacturing activity reinforced worries about slowing world growth, while the initial enthusiasm over a Sino-U.S. trade truce gave way to uncertainty over whether the two nations can strike a durable deal. Further dragging on sentiment was the U.S. government’s threat on Monday of tariffs on $4 billion of additional European Union goods, in a long-running dispute over aircraft subsidies. U.S. futures were flat, while MSCI’s broadest index of Asia-Pacific shares outside Japan was down in early deals. It last traded up 0.38%, helped by a 1% gain in Hong Kong shares as investors caught up to Monday’s global rally. Markets in Hong Kong had been closed Monday for a public holiday. Australian shares managed to push up 0.27% on expectations that the Reserve Bank of Australia will cut its benchmark cash rate by 25 basis points to a record low of 1.0% at a meeting later in the day.
WB commits $465m for two projects
World Bank is committing $465 million through two projects to support higher education in Pakistan and expand sustainable electricity trade between Central Asia and South Asia. “The two projects support Pakistan’s long-term vision for building high quality talent and promote the creation of a regional energy market to boost economic prospects for millions of Pakistanis.” said Illango Patchamuthu, World Bank Country Director for Pakistan. “Both projects form part of the priority areas identified in Pakistan@100: Shaping the Future, a flagship initiative that identifies frontier interventions for Pakistan to become an upper middle-income country by 2047.”
Tax target of Rs.5.5tr unrealistic
The Islamabad Chamber of Commerce and Industry (ICCI) has said that government has indicated to set tax revenue target at Rs.5.5 trillion in the budget, which seemed unrealistic. The ICCI urged that government should set realistic tax target in next budget that could be achievable and prove beneficial for the economy. Ahmed Hassan Moughal President (ICCI) said that government is struggling to achieve the tax collection target during ongoing fiscal year. He further said that tax target of Rs.4.398 trillion was set for fiscal year 2018-19, but during the first 11 months (July-May 2019), FBR managed to collect only Rs.3.303 trillion compared to projected target of Rs.3.751 trillion showing a shortfall of around Rs.448 billion. He said FBR has to collect over Rs.1 trillion in June, which seemed almost impossible.
Deferred payments facility on Saudi oil imports to start from this month
Pakistan will start receiving the promised deferred payment facility on petroleum imports from Saudi Arabia from this month, a press statement issued by the Saudi embassy on Monday said. According to Radio Pakistan, Pakistan will receive oil products worth $275 million every month for the next three years. Last year, Riyadh had agreed to provide a bailout package worth $6bn to help resuscitate Pakistan's worsening economy. Under the agreement, $3bn were to be provided in foreign currency to address Pakistan's balance of payments crisis. A deferred payment facility for the import of oil worth up to another $3 billion was also part of the package.
Govt cuts price of indigenous LPG by Rs5.80 per kg
The government has reduced the price of indigenous LPG by Rs 5.80 per kg or Rs 68.47 per 11.8kg cylinder for the month of July over previous month. According to the notification issued by Oil and Gas Regulatory Authority (OGRA), the price of LPG has been reduced by 4.93 percent and the new price of 11.8 kg cylinder will be Rs1330.92 for July 2019. It is pertinent to mention here that in June last the government had reduced its prices by Rs181 cylinder (Rs15.40 per kg or 11.43 percent) for June 2019 over previous month.

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

The Benchmark KSE100 index have tried to continue its bullish momentum during last trading session while a volatile trading session was witnessed and at day end index succeeded in closing with a slight positive change. As of now index have major resistances ahead at 34,300 and 34,660 points and these both regions would try to cap any bullish sentiment in the market while on flip side index would find supports at 33,630 and 33,250 points. Daily momentum indicators have changed their direction to bullish side, meanwhile daily stochastic have succeed in generating a bullish crossover and MAORSI is ready for this therefore it's expected that index would try to maintain positive sentiment after a small dip on intraday basis.
PSO have tried to touch 172 Rs/share where it have a strong resistance but have not succeeded in penetration above that region and it would try to take a spike again after a dip and it's expected that it would try to bounce back before 167 Rs/share and this time it would succeed in penetration above 172 Rs if some good volumes are pumped in. It's recommended to swing trades in PSO between given prices. ATRL, DGKC, MLCF and ISL are trying to maintain above their respective supportive regions of 75, 53, 23.60 and 38.60 Rs/share respectively and it's recommended to stay on long side in these scripts with strict stop loss of these regions.