PSX Daily Market Review - 3rd June 2019

Trading volume at PSX floor increased by 16.66 million shares or 9.13% on DoD basis, whereas the benchmark KSE100 index opened at 36,218.83, posted a day high of 36,536.78 and a day low of 35,655.25 points during last trading session while session suspended at 35,974.79 with net change of 15.36 points and net trading volume of 176.40 million shares. Daily trading volume of KSE100 listed companies increased by 24.92 million shares or 16.45% on DoD basis.
Foreign Investors remained in net selling positions of 2.88 million shares but net value of Foreign Inflow increased by 1.27 million US Dollars. Categorically, Foreign Individuals and Corporate remained in net selling positions of 0.31 and 4.35 million shares but Overseas Pakistanis Investors remained in net buying positions of 1.78 million shares. While on the other side Local Individuals, Companies and Insurance Companies remained in net selling positions of 4.49, 3.86 and 2.76 million shares respectively but Banks, NBFCs, Mutual Fund and Brokers remained in net buying positions of 5.23, 2.82, 1.88 and 5.13 million shares.

U.S. stock futures, oil slide as trade wars stoke global recession anxiety
U.S. stock futures, Asian share markets and oil prices slipped to multi-month lows on Monday on worries intensifying Sino-U.S. tensions and Washington’s new tariff threats against Mexico could tip the global economy into a recession. The E-mini futures for S&P500 dropped 0.5% in early Asian trade to 2,738, near their March low of 2,722 while Japan’s Nikkei skidded 1.1% to a four-month low. MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed in early trade, but held barely above last week’s four-month low. The CSI 300 index of Chinese shares advanced 0.9%, but kept within its recent range. Helping the mood, a private survey on Chinese manufacturing sector published on Monday pointed to a modest expansion in factory activity as export orders bounced from a contraction.
Govt to launch interest-free loan programme this month
Prime Minister Imran Khan will inaugurate interest free loan programme for the unemployed people this month, said BISP Chairperson and Special Assistant to Prime Minister on Social Protection and Poverty Alleviation Dr Sania Nishtar. She added that the 3rd pillar of the Ehsaas Program is the provision of employment for the poor people and the first scheme in this regard will be launched by the Prime Minister in June.
ICCI terms housing scheme a positive initiative
The Islamabad Chamber of Commerce and Industry said that the New Pakistan Housing Scheme was a positive initiative of PTI government as it would trigger growth in the current stagnant economy, create plenty of new jobs, reduce housing shortage and steer the country out of current economic challenges. Ahmed Hassan Moughal President, Rafat Farid Senior Vice President and Iftikhar Anwar Sethi Vice President, Islamabad Chamber of Commerce & Industry said that housing industry was inter-connected with 40 plus industries including cement, steel, marble, light engineering and others, therefore, the growth of this industry would trigger the growth and development of all allied industries leading to acceleration in the business and economic activities in the country.
Helping PIA at CAA’s expense
The Civil Aviation Authority (CAA) is going to lose Rs4 billion per annum to three domestic airlines, especially Pakistan International Airlines (PIA). This will be in addition to over Rs100bn that our flag carrier owes to CAA. About 10 years ago, PIA stopped paying CAA not only service charges but also passenger charges — sums it collects on behalf of CAA by selling tickets. Owing to the partial closure of airspace to about 500 transit flights a day amidst tensions on the eastern border, the air navigation service provider is losing around $300,000 on a daily basis. But that is understandable given the national security situation.
Exporters insist on zero-rated regime in talks with PM
A meeting on Sunday between Prime Minister Imran Khan and leading businessmen and industrialists of the country ended without any decision on the grant of zero-rated status to the manufacturers of products that are exported. A participant of the meeting told Dawn on condition of anonymity that although the meeting could not take a final decision on the issue of zero-rating of exportable products, it was emphasised that their sale in the local market should be taxed. The export-oriented industrial sectors enjoyed the facility of zero-rating from 2005 to 2009, when the government led by the Pakistan Peoples Party withdrew the incentive. The facility was revived in 2015 by the Pakistan Muslim League-Nawaz (PML-N) government.

PAEL, DGKC, ISL, EPCL and MLCF would try to lead the positive momentum while NML, STCL and NCL would reamin in laggards during current trading session.

The Benchmark KSE100 Index had bounced back after getting support from a horizontal supportive region or a daily double bottom during last trading session and have succeeded in penetration above its previous rally's high. Daily & hourly momentum have been mixed but weekly momentum is in bullish mode after previous week's bullish engulfing. As of now index have resistant regions ahead at 36,300 & 36,500 points while on flip side index would try to find supports at 35,250 & 34,880 points in case of any pressure. Currently it's expected that index would try to close on a positive note during current trading session and today's closing above 36,100 points would push index towards 37,000 & 37,500 points in coming days. It's recommended to hold existing long positions with trailing stop loss and average them out if index would succeed in closing above 36,100 points on hourly basis. For day trading index would start a new rally if penetrated above 36,100 towards 36,300 points and initiating long positions to avail that spike could be beneficial.