PSX Daily Market Review - 30th Aug 2019

Trading volume at PSX floor dropped by 30.43 million shares or 20.42% on DoD basis, whereas the benchmark KSE100 index opened at 30,637.71, posted a day high of 30,808.44 and a day low of 30,111.56 points during last trading session while session suspended at 30,158.96 points with net change of -478.75 points and net trading volume of 87.46 million shares. Daily trading volume of KSE100 listed companies dropped by 24.95 million shares or 22.2% on DoD basis.
Foreign Investors remained in net selling positions of 8.3 million shares and net value of Foreign Inflow dropped by 0.98 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani investors remained in net selling positions of 7.3 and 1.04 million shares. While on the other side Local Individuals, Companies, Banks and NBFCs remained in net long positions of 13.21, 4.05, 1.58 and 1.24 million shares respectively but Mutual Funds, Brokers and Insurance Companies remained in net selling positions of 4.12, 6.37 and 0.48 million shares.

Asian shares at one-week top on conciliatory trade tone, stimulus hopes
Asian shares jumped to a one-week high on Friday as the United States and China returned to the negotiating table to resolve their tariff dispute and on hopes central banks and governments will do more to avert a global growth slowdown. E-Minis for the S&P500 added 0.2% after more than 1% gain on Wall Street overnight and futures for Eurostoxx50 rose 0.3%. Japan’s Nikkei jumped 1.2% while South Korea’s KOSPI index gained 1.7% and Australian shares were 0.9% higher. The mood lifted after U.S. President Donald Trump said some trade discussions were taking place with China on Thursday, with more talks scheduled.
Sales tax refunds for exporters to be paid within 72 hours, claims FBR
The Federal Board of Revenue (FBR) is claiming that it will now pay sales tax refunds through the newly installed Fully Automated Sales Tax e-Refund (FASTER) system to exporters of five sectors within 72 hours of submission of refund claims. FBR Sales Tax Chief Hamid Memon announced in a news briefing on Thursday that in the next couple of days, the FBR will start paying sales tax refunds in the range of Rs15 billion to Rs20bn a month to the five export-oriented sectors through the FASTER system.
ADB to lend $7.5bn over three years
The Asian Development Bank (ADB) on Thursday promised a $7.5 billion assistance to Pakistan over the next three years (2020-24) under its next Country Assistance Strategy. This was the crux of a two-day visit of ADB’s high-level delegation to Islamabad led by its Vice President Shixin Chen. The delegation, including Adviser Ehsan Khan and Country Director for Pakistan Ms. Xiaohong Yang, also held meetings with Prime Minister Imran Khan and his ministers. The Ministry of Planning and Development in an announcement said the ADB had promised an indicative assistance of $7.5bn over the next three years. It said the Minister for Planning Makhdum Khusro Bakhtyar welcomed “the ADB’s indicative assistance of $7.5bn over the next three years for Pakistan” and hoped the ADB portfolio may be expanded to include other priority areas.
Pakistan outlook ‘stable’: S&P
The Standard & Poor’s rating agency on Thursday affirmed Pakistan’s ‘B-’ long-term and ‘B’ short-term sovereign rating while maintaining the long-term outlook at ‘stable’ rating. The New York-based rating agency also affirmed ‘B-’ long-term issue rating on Pakistan’s senior unsecured debt and sukuk trust certificates. It said Pakistan’s rating remained constrained by a narrow tax base and domestic and external security risks, which continue to be high. It forecast Pakistan’s economy to slow down to 2.4 per cent of the GDP during the current fiscal year — a 12-year low. Taken together with the country’s relatively fast population growth of approximately 2pc per year, real per capita economic growth will fall to an anaemic 0.4pc.
Present govt should not be blamed for debt spike: Hafeez
Adviser to the Prime Minister on Finance Dr Abdul Hafeez Sheikh has said that blaming the current government for a phenomenal increase in public debt is unfair because it is also paying the loans obtained by the previous governments. Talking to the media after addressing a two-day “First Central Asia Regional Economic Cooperation (CAREC) Capital Market Regulators Forum” here on Thursday, Dr Sheikh said Pakistan was going through transformation as the present government had inherited a massive debt burden.

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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