PSX Daily Market Review - 2nd May 2019

Trading volume at PSX floor dropped by 66.81 million shares or 37.64% on DoD basis, whereas the benchmark KSE100 index opened at 36,993.38, posted a day high of 37,037.30 and a day low of 36,708.20 points during last trading session while session suspended at 36,784.44 with net change of -241.83 points and net trading volume of 82.53 million shares. Daily trading volume of KSE100 listed companies dropped by 50.08 million shares or 37.77% on DoD basis.
Foreign Investors remained in net buying positions of 4.39 million shares and net value of Foreign Inflow increased by 2.35 million US Dollars. Categorically, Foreign Individuals remained in net selling positions of 0.03 million shares but and Foreign Corporate and Overseas Pakistani investors remained in net buying positions of 2.07 and 2.35 million shares respectively. While on the other side Local Individuals, Mutual Fund and Brokers remained in net selling positions of 1.17, 5.11 and 3.46 million shares respectively but Local Companies, Banks, NBFCs and Insurance Companies remained in net buying positions of 2.25, 1.15, 0.62 and 0.25 million shares respectively.

IMF agrees on $ 6.5 billion package for Pakistan, agreement to sign on May 10
Long awaited IMF bailout package for Pakistan has finalized with the amount of $ 6.5 billion for the term of Three years. Well informed source revealed World News Observer. The agreement between Pakistani officials and IMF will be signed on May 10, Source from Ministry of Finance said that the IMF has asked Pakistan to jackup the revenue targets. Officials of the International Monetary Fund also said that the Rupee parity would be determined by the market forces, source informed. The visiting IMF mission will stay in Islamabad to conclude the technical details by May 10, while the policy level understanding will be reached over the next three days, a source at the finance division told World News Observer. The bailout package is finalised to be $6.5 billion.
Budget deficit likely to touch record Rs2.7 trillion despite mini-budgets
Pakistan budget deficit is expected to touch record Rs2.7 trillion in current fiscal year mainly due to massive shortfall in tax collection and increase in interest payment. The country’s budget deficit would widen to Rs2.7 trillion in the current financial year, which would be equal to 7 percent of the gross domestic product (GDP). The budget deficit would be highest ever by exceeding the previous level of Rs2.24 trillion. Earlier, the government had revised upwards the target of the budget deficit to 6.3 percent of the GDP (Rs2.39 trillion) for the ongoing fiscal year as against the target of 5.1 percent of the GDP.
IMF briefed on tax amnesty, privatisation, power, gas tariffs
The talks with International Monetary Fund (IMF) team focused on briefing on tax amnesty scheme by the Federal Board of Revenue, privatisation programme, power and gas tariffs, and the government’s policies. Pakistan will have to submit its fresh plan on privatisation front in order to strike a deal with the visiting IMF mission as the first round of technical talks has begun this week but nothing is so far finalised. “The negotiations with the IMF have commenced and the privatisation plan may be revised to bring more entities on the privatisation list. All things will be finalised in the next few days with the approval of higher authorities,” official sources confirmed to The News here on Wednesday.
Activists in shock over tobacco firm’s donation for dams fund
Health advocates on Tuesday were shocked after they came to know that Prime Minister Imran Khan not only held a meeting with the representative of an international tobacco company, but also received a cheque for Rs5 million from him as a donation for the construction of dams in the country. It is a clear violation of Article 5.3 of the World Health Organisation’s (WHO) Framework Conven­tion on Tobacco Control (FCTC) which says that government representatives cannot meet and receive funds from tobacco companies even under Corporate Social Res­ponsi­bility (CSR) activities as it is also a way of advertising, according to the country representative of the Tobacco Free Kids, Malik Imran.
Pakistan bullish on oil, gas discovery at Kekra-1
Pakistan is expecting discovery of oil and gas reserves in ultra-deep waters offshore Karachi as the drilling at Kekra-1 has almost reached its climax, an official said on Tuesday. “There is an optimistic prospect of finding energy resources at Kekra-1,” the Special Assistant to the Prime Minister for Petroleum Nadeem Babar said.

SEARL, PPL, EPCL and BOP would try to lead the positive momentum, while DGKC, MLCF, ASL and TRG would remain in laggards.

The Benchmark KSE100 index have not succeeded in penetration above its major resistant region of 37,500 points during last trading session. As of now index have supportive regions at 36,760 and 36,430 points while on flipside it would face resistances at 37,350 and 37,700 points. It's recommended to stay cautious while trading during current trading session if index would succeed in sliding below its supportive regions then short term trend would be changed which may lead index towards a new low at 35,800 points, its recommended to start buying on dip with strict stop loss at 36,430 points. It's expected that index would try to recover after completing correction of its last bullish rally but strict stop loss is recommended on long positions.