PSX Daily Market Review - 31st July 2019

Trading volume at PSX floor increased by 5.50 million shares or 12.02% on DoD basis, whereas the benchmark KSE100 index opened at 31,724.81, posted a day high of 31,774.21 and a day low of 31,485.76 points during last trading session while session suspended at 31,658.12 points with net change of -76.11 points and net trading volume of 40.95 million shares. Daily trading volume of KSE100 listed companies increased by 3.58 million shares or 9.57% on DoD basis.
Foreign Investors remained in net long positions of 2.02 million shares and net value of Foreign Inflow increased by 2.74 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani investors remained in net long positions of 1.83 and 0.16 million shares. While on the other side Local Individuals and Insurance companies remained in net long positions of 7.35 and 1.0 million shares but Local Companies, Banks, Mutual Funds and Brokers remained in net selling positions of 4.01, 1.55, 4.0 and 0.88 million shares respectively.

Asian shares slip to six-week low, pound pressured by hard Brexit fears
Asian shares fell on Wednesday to a six-week trough, rattled by fresh trade war concerns following threats from President Donald Trump to Beijing, while increasing worries about a no-deal Brexit kept the pound under pressure. Later in the day, the U.S. Federal Reserve is widely expected to cut interest rates for the first time since the financial crisis more than a decade ago. The expected easing has supported risk asset prices worldwide. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.7% to the lowest since June 19, while Japan's Nikkei .N225 declined by 1%. Major Wall Street stock averages ended slightly lower on Tuesday, with the S&P 500 .SPX losing 0.26%, after Trump warned China against waiting out his current presidential term before finalizing a trade deal. As a new round of U.S.-China trade negotiations started in Shanghai, Trump tweeted that, if he wins re-election in November 2020, the outcome could be no agreement or a harsher one.
FPCCI hails announcement of constructing cargo airport at Allama Iqbal Industrial City
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Engineer Daroo Khan Achakzai hailed the announcement of the government for constructing state of the art cargo airport to facilitate local and foreign industrialists of Allama Iqbal Industrial City. He hoped that it would help the country for promoting the ‘business-friendly’ atmosphere to earn much-needed foreign exchange by enhancing volume of exports, said a press release issued. FPCCI Chief while talking to Chairman Faisalabad Industrial Estate Development and Management Company (FIEDMC) Mian Kashif Ashfaq appreciated him for his untiring efforts for facilitating local and foreign investors to generate business activities.
Govt urged to introduce low cost credit schemes for industry
The Islamabad Chamber of Commerce & Industry (ICCI) has called upon the government to focus on introducing low cost credit schemes for the domestic industry to improve its productivity, attract new investment and promote exports. In a joint statement issued here on Tuesday, President ICCI Ahmed Hassan Moughal and Senior Vice President Rafat Farid said that Pakistan has been depending on foreign loans to run its economy and stressed that government must work on some policies to improve domestic productivity and attract new investment by providing low cost financing to businesses.
US hints at greater economic engagement with Pakistan
The United States and Pakistan can further enhance bilateral trade if strategic ties between the two countries continue to improve, said a White House factsheet released on Tuesday. The factsheet “Working toward Peace and Stability: Building Economic Prosperity” notes that the United States and Pakistan enjoy a strong economic partnership that benefits both countries. The official document points out that Pakistan and the US traded $6.6 billion worth of goods last year, setting a new record of bilateral trade. While the document recognises Pakistan’s role in the Afghan peace process, US officials recently also urged Islamabad to encourage transit trade between India and Afghanistan, noting that it would benefit all by enhancing trade between South and Central Asian regions.
Names of 3.26m power consumers missing from sales, income tax records
Amid record fiscal deficit and declining government revenues, names of as many as 3.26 million power consumers have been found to be missing from the sales tax and income tax records. The alarmingly poor compliance with tax laws is at the heart of the country’s widening fiscal deficit. Chairman of the Federal Board of Revenue (FBR) Shabbar Zaidi has warned that from July onwards the board will take strict action against tax defaulters, including by cutting off their supply of electricity. FBR has already requested the industrial and commercial consumers to avail the “last” assets declaration scheme to avoid penalties and other action required under the tax laws.

The Benchmark KSE100 index have penetrated below its major supportive region of 31,700 points which fall on 100% expansion of its previous weekly correction along with a horizontal supportive region. As of now index have a last hope to sustain against current bearish pressure which fall on 31,200 points and it's expected that index would try to start a short term pull back towards 32,500 or 32,760 points before penetration this region and if index would succeed in starting a pull back then current penetration of 31,700 points would be called a false penetration or cheat pattern and index would try to hit 34,000 points, but for this scenario index needs fresh volume which would change the momentum. Currently momentum on daily and weekly time frames is strongly bearish and it seems that if fresh volumes could not pop up then index could target 30,000 and 29,700 points in coming days therefore it's recommended to start trading very cautiously with strict stop loss.