PSX Daily Market Review - 30th April 2019

Trading volume at PSX floor increased by 33.56 million shares or 23.32% on DoD basis, whereas the benchmark KSE100 index opened at 37,201.59, posted a day high of 37,437.72 and a day low of 36,949.92 points during last trading session while session suspended at 37,026.27 with net change of -104.36 points and net trading volume of 132.61 million shares. Daily trading volume of KSE100 listed companies increased by 23.29 million shares or 21.30% on DoD basis.
Foreign Investors remained in net selling positions of 3.70 million shares and net value of Foreign Inflow dropped by 0.36 million US Dollars. Categorically, Foreign Individuals remained in net buying positions of 0.03 million shares but and Foreign Corporate and Overseas Pakistani investors remained in net selling positions of 3.18 and 0.54 million shares respectively. While on the other side Local Individuals, Mutual Fund and Insurance Companies remained in net buying positions of 5.38, 0.22 and 2.23 million shares respectively but Local Companies, Banks, NBFCs and Brokers remained in net selling positions of 1.75, 0.49, 0.13 and 1.77 million shares respectively.

Asian shares fall as China manufacturing data disappoints
AShares in Asia fell on Tuesday as readings on China’s manufacturing activity failed to meet expectations, underscoring weakness in the world’s second-largest economy despite Beijing’s attempts to spur growth. Both official and private business surveys pointed to slower Chinese factory growth this month, dashing hopes for a steady reading or even a faster expansion. Data also showed a slower expansion in its services sector, adding to economic uncertainty. The dollar-denominated MSCI index of Chinese shares dropped 0.8 percent. But Chinese blue chips in Shanghai and Shenzhen kept losses in check, losing less than 0.1 percent as investors maintained hopes for further measures to prop up the economy. The weak manufacturing numbers suggest “stimulus is there to stay,” said Frances Cheung, head of macro strategy for Asia at Westpac. Upbeat data for March had prompted some analysts to scale back expectations of additional support measures.
Technical level talks with IMF begin
ISLAMABAD: Pakistan and the International Monetary Fund kicked off on Monday technical level talks to sort out details of the proposed bailout package over the next 10 days. The visiting IMF mission will stay in Islamabad to conclude the technical details by May 6, while the policy level understanding will be reached over the next three days, a source at the finance division told Dawn. The proposed bailout package is expected to be $6-8 billion. The source said that after the successful technical level talks Pakistan would sign an agreement with the IMF latest by May 10. The agreement would then be sent to the IMF board, the source said. The understanding on a broader framework had already been reached between former finance minister Asad Umar and top IMF officials in Washington. Now, Adviser to the Prime Minister on Finance Dr Hafeez Shaikh will lead the technical level talks with the visiting IMF mission.
Economic reforms aim to promote investment: Dawood
Advisor to Prime Minister on Commerce, Textile, and Industry Abdul Razak Dawood on Monday said different economic reforms had been introduced to promote investment. “The current government is creating ease of doing business and will take more steps for this,” he said during a meeting with Chinese Ambassador in Pakistan Yao Jing. They both discussed promotion of trade and investment. Yao Jing said Chinese private textile company Challenge Apparels Limited had arrived in Pakistan four years ago. He said the textile wanted unusual increase in current investment. “The increase in business will create thousands of employments in the country,” he said.
AJK traders blast India over trans-LoC trade suspension
Hundreds of the traders hailing from various parts of AJK, engaged in the cross-LoC trade through Muzaffarabad-Srinagar and Rawalakot-Poonch traditional routes, Monday took to the streets against the recent unilateral suspension of the Cross-LoC trade by India. India rencently stopped the across-LoC trade for an indefinite period under the bogey of absolutely baseless and unfounded allegations leveled against the trade and its stake-holders. The cross LoC trade between both sides of the Line of Control in disputed Jammu Kashmir state – Azad Jammu Kashmir and Indian occupied Jammu Kashmir, had started through the Muzaffarabad-Srinagar and Rawalakot-Poonch routes on October 20, 22, 2008 respectively under the barter system.
Spices factories still using China salt: Report
Khyber Pakhtunkhwa Food Authority (KPFA) on Monday issued a special report on spices industries of the province with comments from Director General, Riaz Khan Mahsud expressing the resolve that spices business to be improved and upgraded with food standards. According to a press release issued here, KPFA DG Raiz Mahsud said that spices industry was the backbone of food business of the province and we are regulating the businesses to improve standards to deliver the best products in the markets,” the director general maintained. The report reads that KPFA with a mandate to ensure food safety and hygiene standards in open and local spices business raided local small-scale grinding and process units from time to time. “A total number of 247 processing units have been inspected 449 times in Peshawar, Bannu, Swat, Mardan, Kohat, Abbottabad and D.I.Khan” it reads.

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.