PSX Daily Market Review - 2nd Sep 2019

Trading volume at PSX floor dropped by 8.62 million shares or 7.27% on DoD basis, whereas the benchmark KSE100 index opened at 30,144.98, posted a day high of 30,309.64 and a day low of 29,559.82 points during last trading session while session suspended at 29,672.12 points with net change of -486.84 points and net trading volume of 85.92 million shares. Daily trading volume of KSE100 listed companies dropped by 1.54 million shares or 1.76% on DoD basis.
Foreign Investors remained in net buying positions of 4.96 million shares and net value of Foreign Inflow increased by 1.89 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani remained in net buying positions of 1.90 and 3.08 million shares but Foreign Individuals investors remained in net selling positions of 0.02 million shares. While on the other side Local Individuals, Companies, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 13.89, 2.61, 1.44, 1.88 and 4.46 million shares respectively but Banks and NBFCs remained in net buying positions of 21.52 and 0.006 million shares.

Stocks shiver as new U.S.-China tariffs add to global gloom
Global stock prices fell on Monday after the United States and China imposed new tariffs on each other’s goods, reinforcing investors’ worries over slowing global growth. The E-mini futures for U.S. S&P500 ESc1 fell as much as 1.06% in early trade and last stood down 0.39%. Japan's Nikkei .N225 shed 0.28%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dropped 0.3%, led by 0.5% drop in Hong Kong's Hang Seng .HSI after another weekend of violent anti-government protests. But mainland Chinese shares fared better, with the CSI300 index .CSI300 rising 0.3% despite the trade row escalation.
USA, China, UK top three export destinations of Pakistani products
The United States of America (USA) remained among the top exports destinations of the Pakistani products followed by China and United Kingdom during first month of current financial year 2019-20 as compared to the corresponding month of last year. During the month of July, 2019, the total exports to the USA were recorded at $373.514million against the exports of $328.090 million, showing an increase of 13.84percent during the period under review, according to the data issued by State Bank of Pakistan (SBP). This was followed by China, wherein Pakistan exported goods worth $167.058million against the exports of $152.043 million same month of last year, showing growth of 9.87percent. In United Kingdom (UK), Pakistan exported products worth $147.333million during the current fiscal year against the exports of $153.702 million during last fiscal year, showing decrease of 14.4 percent, SBP data revealed.
FPCCI assures PM for its support in difficult time
Chairman Businessmen Panel for FPCCI, Mian Anjum Nisar said business community is the backbone of the economy and early resolution of its issues must be a top priority of government. We understand that Prime Minister of Pakistan Imran Khan is working day and night for the good of business community and we assure our full support to PM in ongoing difficult times and we are with the vision of Imran Khan to reshape the economy and industry of Pakistan for the better economic growth of the country which is much needed. added Anjum. He said the most crucial milestone of economic stability has been achieved as the increase in foreign exchange reserves has created a ‘buffer for absorbing any external financial shocks’.
Kuwait Airways to spend $2.5bn on new aircraft
Kuwait Airways plans to spend about $2.5 billion on 28 new aircraft due to be delivered by 2026, Kuwait Airways Chairman Yousef A. M. J Alsaqer said. The planes will be financed with bank debt, the airline's own capital and through the sale and re-leasing of the carrier's planes, Alsaqer said, declining to disclose how much it will borrow. “So far we don't have an agreement with a particular bank or a certain funding body, but everything is planned,” Alsaqer said, adding that Kuwait Airways has already paid instalments for the purchase of the aircraft. He was speaking to reporters on Saturday evening at an event at Kuwait International Airport to mark the arrival of the first new Airbus A320neo jet owned by the company.
Experts term draft renewable energy policy deficient
A group of energy sector experts have opposed the draft Alternative & Renewable Energy (ARE) policy saying it is unstructured, deficient and contradictory to various regulations and codes and fails to provide a clear roadmap for renewable energy development. A 10-member panel of experts including former heads of public and private sector energy companies and regulators, and representatives of the provincial governments in letters to federal ministries and relevant agencies asked them to announce a workable policy that can attract fresh investment with clarity of targets. They observed that the document finalised by the federal government appeared to be a conceptual working draft rather than complete procurement policy, based on which stakeholders, developers and investors and implementing agencies could join Centre’s efforts for immediate bankable business model.

The Benchmark KSE100 index have slide below its initial supportive region of 30,800 points during second last trading session and have continued its bearish journey after retesting that region again during last trading session. Typically, index have started falling after completing 50% bearish correction of its last bullish correction so it can be said that index would remain range bound until it will succeed in penetration below 29,900 or above 30,860 points. Currently index is trying to vanish impact of its previous weekly morning star while today's closing below 29,700 will create a dark cloud on weekly chart which would try to resist against any positive spike in coming week. It's recommended to stay cautious because closing below 29,700 points will call for 27,600 and then 24,000 points on shorter run while penetration above 30,860 will lead index towards 31,700 and 32,200 points.

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