PSX Daily Market Review - 30th July 2019

Trading volume at PSX floor dropped by 40.78 million shares or 47.11% on DoD basis, whereas the benchmark KSE100 index opened at 32,105.75, posted a day high of 32,122.09 and a day low of 31,717.76 points during last trading session while session suspended at 31,734.23 points with net change of -369.04 points and net trading volume of 37.37 million shares. Daily trading volume of KSE100 listed companies dropped by 29.92 million shares or 44.46% on DoD basis.
Foreign Investors remained in net buying positions of 0.51 million shares but net value of Foreign Inflow dropped by 0.67 million US Dollars. Categorically, Foreign Individuals and Corporate investors remained in net buying positions of 0.05 and 0.47 million shares but Overseas Pakistanis remained in net selling positions of 0.008 million shares. While on the other side Local Individuals, Mutual Fund and Brokers remained in net selling positions of .017, 2.40 and 0.56 million shares respectively but Local Companies, Banks, NBFCs and Insurance Companies remained in net buying positions of 1.18, 1.41, 0.02 and 0.52 million shares.

Asia stocks higher ahead of Fed, pound pressured by fresh Brexit pain
Asian stocks edged up on Tuesday as equity investors prepared for an expected U.S. interest rate cut this week while heightened concerns in currency markets about a no-deal Brexit sent the pound to a 28-month low. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.15%. South Korea's KOSPI .KS11 advanced 0.2% and Japan's Nikkei .N225 added 0.7%. Australian stocks climbed as much as 0.7% to touch a record high, supported by buoyant mining shares and adding to the previous day's tech-driven gains. Graphic: Asian stock markets - tmsnrt.rs/2zpUAr4 The U.S. Federal Reserve begins a two-day policy meeting later on Tuesday, at which it is widely expected to lower interest rates by 25 basis points. If implemented, it would be the central bank’s first rate cut in a decade.
Ministry of finance to issue Sukook bonds
The ministry of finance on Monday recommended to issue Rs200 billion Sukuk bonds for the second time to pay the dues of circular debt in energy sector. The amount of Islamic Sukuk bonds would be spent to pay the circular debt of energy sector. Finance Secretary Naveed Kamran Baloch has chaired the meeting, which was attended by the heads of the banks. The ministry of finance has recommended the Economic Coordination Committee (ECC) of the Cabinet to give approval to issue Rs200 billion Sukuk bonds for the second time to pay the dues of circular debt in energy sector. The ECC would likely to meet within this week to consider the proposal, an official of the ministry of finance told The Nation.
Businessmen laud FBR over faster initiative
The Islamabad Chamber of Commerce and Industry (ICCI) has lauded the initiative of Federal Board of Revenue (FBR) for finalising the rules of Fully Automated Sales Tax E-Refund (FASTER) procedure for export-oriented sectors. Businessmen termed it a positive development as it will ensure prompt issue of sales tax refunds to the exporters and help address their liquidity problems. President ICCI Ahmed Hassan Moughal, and Senior Vice President ICCI Rafat Farid, Senior said in a joint statement on Monday that billions of rupees of taxpayers were stuck up with FBR as claims of sales tax refunds due to which the businesses were facing liquidity crunch.They said that it was a longstanding demand of taxpayers from the government to develop a new mechanism for timely clearance of refunds.
Mardan traders protest against AC over inappropriate behaviour
Markaze Tanzeem-e-Tajiraan Zahir Shah group staged protest rally against the Assistant Commissioner (AC) for his alleged inappropriate behaviuor with the traders and allegedly teasing the traders. The rally was started from Mardan Chamber of Commerce Industry (MCCI) office and at Pakistan chowk the rally was changed into protest meeting. Rally was led by President Markaze Tanzeem-e-Tajiraan- Zahir Shah group and President MCCI Zahir Shah, Chairman Ghulam Sarwar and others. Addressing the protesters the speakers strongly condemned AC Asadullah and said that he is allegedly teasing the traders. Speakers demanded the Chief Minister Mahmood Khan, Chief Secretary, and Commissioner Mardan to take action against the assistant commissioner.
Bedwear exporters reject proposed refund rules
Pakistan Bedwear Exporters Association (PBEA) on Monday rejected the Federal Board of Revenue’s (FBR) draft refund rules. In a letter addressed to the board, the PBEA asked FBR chairman to meet with all stakeholders before finalising the rules. The PBEA Chairman Shabir Ahmed said the sectors would face a number of issues if these rules are implemented. He added that 17 per cent general sales tax would affect manufacturers’ cash flow that make local sales or export goods. He said that after reviewing draft rules, it seems the new mechanism will create severe liquidity crunch for the three export sectors as they would not be able to adjust their input/output tax. On the other hand, he said those manufacturers who sell local and also export their goods with fully integrated units can easily adjust their refunds and their sales tax would not be blocked.

The Benchmark KSE100 index have not succeed in penetration above its initial resistant region of 32,500 points during last three trading session and have got pressure from same region. Daily and weekly momentum indicators have turned their direction towards bearish side and it's expected that index would now try to touch its supportive region of 31,500 points in this week, if index would slide below its supportive region of 31,500 points then a new low would be expected around 31,200 points. While on flip side index would face resistances at 32.500 and 32,800 points in case of reversal. It's recommended to practice caution during current trading session as market would show some volatility with low volumes.