Previous Session Recap
Trading volume at PSX floor dropped by 42.73 million shares or 38.62% on DoD basis, whereas the benchmark KSE100 index opened at 36,776.22, posted a day high of 36,857.75 and a day low of 36,508.22 points during last trading session while session suspended at 36,547.63 with net change of -236.81 points and net trading volume of 50.97 million shares. Daily trading volume of KSE100 listed companies dropped by 31.55 million shares or 38.23 on DoD basis.
Foreign Investors remained in net buying positions of 0.65 million shares and net value of Foreign Inflow increased by 0.07 million US Dollars. Categorically, Foreign Corporate Investors remained in net buying positions of 0.73 million shares but Overseas Pakistanis remained in net selling positions of 0.09 million shares. While on the other side Local Individuals, Companies, NBFCs and Brokers remained in net buying positions of 0.45, 0.25, 0.13 and 1.43 million shares respectively but Local Banks and Mutual Funds remained in net selling positions of 1.15 and 3.75 million shares respectively.
Analytical Review
Asian markets calm as investors await U.S. jobs report
Asian share markets were subdued on Friday amid thin holiday trade although the dollar found support as investors pared expectations for a U.S. rate cut this year while oil prices loitered near one-month lows on oversupply fears. Australia’s benchmark index was last up 0.2 percent, New Zealand shares were off 0.5 percent while South Korea’s KOSPI slipped 0.3 percent. Trading volumes were light across Asia with markets in China and Japan still closed for holidays. Overnight on Wall Street, major indices gave up initial gains and closed in the red, weighed down by energy shares. World stocks have rallied hard this year - the S&P 500 has climbed more than 16 percent so far in 2019 - but further gains will be hard to come by, analysts at Capital Economics said.
Czech companies invited to make investment in CPEC SEZs
Sarhad Chamber of Commerce and Industry (SCCI) has invited the Czech Republic companies to make investment in special economic zones (SEZs) under the China Pakistan Economic Corridor (CPEC) as well as other potential sectors in Khyber Pakhtunkhwa. The invitation was extended by SCCI senior vice president (SVP), Saad Khan during a meeting with the Economic and Trade Counsellor of Czech Republic in Pakistan, Michal Bobek here at Chamber House on Thursday. The Czech Republic Honorary Consul General in Peshawar, Asad Saifullah, SCCI vice president Haris Mufti, former presidents Maqsood Anwar and Malik Riaz were present in the meeting. The SCCI president told the inviting diplomat that conditions are favorable for investment in country generally, particularly in Khyber Pakhtunkhwa after restoration of complete peace in the region. He added the local and foreign investors should take benefit from the growing investment opportunities.
Provincial finance ministers called to meet IMF team in Islamabad
The Ministry of Finance has asked all the provincial governments to send their finance ministers to Islamabad for a face to face meeting with the IMF team on Saturday. An agenda for the talks has not been declared, but the authorities in Sindh say the talks come after reports emerged in the press that the government is considering an integrated sales tax regime across the country. The sales tax has been bifurcated between goods and services since the NFC award of 2009, with the services part largely devolved to the provinces. Authorities at the centre have long felt that the bifurcation has resulted in a large revenue loss for the federal government.
$1bn ADB loan likely for budgetary support
THE Asian Development Bank (ADB) on Thursday agreed to give $1bn budgetary support to Pakistan soon after a green signal from the International Monetary Fund (IMF) as the government had promised to have a majority transformation of its high debts having serious socio-economic and financial repercussions. Speaking at a news conference at the 52nd Annual Meetings of Board of Governors, ADB President Takehiko Nakao said his bank had received a request from Pakistan for a budget support of about $1bn in addition to its IMF programme and normal large operations of the ADB for years. “We are waiting for a good outcome of discussions over an IMF programme and if the IMF programme is there we would be happy to extend the budget support and other policy loans quite soon,” Mr Nakao said. At the same time, President Nakao expressed concern over repeated IMF bailouts.
Centre-Sindh tensions mount on sales tax collection rights
Sindh has asked the federal government to ensure that whatever commitments it has given to the International Monetary Fund (IMF) regarding collection of sales tax must comply with the Constitution, which gives the provinces the right to collect sales tax on services. Sindh Chief Minister Syed Murad Ali Shah demanded this in a letter to Adviser to Prime Minister on Finance and Economic Affairs Dr Hafeez Shaikh with reference to a news report appeared in the national press that read: “The government has conceded to the IMF that the present arrangement of four provincial authorities and one federal looking at goods and services tax has increased the cost of doing business in an exponential manner and large businesses have been complaining about the compliance cost. In three years time, we will move to a single tax collection agency with one return and auditing authority to cut down on compliance costs,” the government has told the Fund.
Asian share markets were subdued on Friday amid thin holiday trade although the dollar found support as investors pared expectations for a U.S. rate cut this year while oil prices loitered near one-month lows on oversupply fears. Australia’s benchmark index was last up 0.2 percent, New Zealand shares were off 0.5 percent while South Korea’s KOSPI slipped 0.3 percent. Trading volumes were light across Asia with markets in China and Japan still closed for holidays. Overnight on Wall Street, major indices gave up initial gains and closed in the red, weighed down by energy shares. World stocks have rallied hard this year - the S&P 500 has climbed more than 16 percent so far in 2019 - but further gains will be hard to come by, analysts at Capital Economics said.
Sarhad Chamber of Commerce and Industry (SCCI) has invited the Czech Republic companies to make investment in special economic zones (SEZs) under the China Pakistan Economic Corridor (CPEC) as well as other potential sectors in Khyber Pakhtunkhwa. The invitation was extended by SCCI senior vice president (SVP), Saad Khan during a meeting with the Economic and Trade Counsellor of Czech Republic in Pakistan, Michal Bobek here at Chamber House on Thursday. The Czech Republic Honorary Consul General in Peshawar, Asad Saifullah, SCCI vice president Haris Mufti, former presidents Maqsood Anwar and Malik Riaz were present in the meeting. The SCCI president told the inviting diplomat that conditions are favorable for investment in country generally, particularly in Khyber Pakhtunkhwa after restoration of complete peace in the region. He added the local and foreign investors should take benefit from the growing investment opportunities.
The Ministry of Finance has asked all the provincial governments to send their finance ministers to Islamabad for a face to face meeting with the IMF team on Saturday. An agenda for the talks has not been declared, but the authorities in Sindh say the talks come after reports emerged in the press that the government is considering an integrated sales tax regime across the country. The sales tax has been bifurcated between goods and services since the NFC award of 2009, with the services part largely devolved to the provinces. Authorities at the centre have long felt that the bifurcation has resulted in a large revenue loss for the federal government.
THE Asian Development Bank (ADB) on Thursday agreed to give $1bn budgetary support to Pakistan soon after a green signal from the International Monetary Fund (IMF) as the government had promised to have a majority transformation of its high debts having serious socio-economic and financial repercussions. Speaking at a news conference at the 52nd Annual Meetings of Board of Governors, ADB President Takehiko Nakao said his bank had received a request from Pakistan for a budget support of about $1bn in addition to its IMF programme and normal large operations of the ADB for years. “We are waiting for a good outcome of discussions over an IMF programme and if the IMF programme is there we would be happy to extend the budget support and other policy loans quite soon,” Mr Nakao said. At the same time, President Nakao expressed concern over repeated IMF bailouts.
Sindh has asked the federal government to ensure that whatever commitments it has given to the International Monetary Fund (IMF) regarding collection of sales tax must comply with the Constitution, which gives the provinces the right to collect sales tax on services. Sindh Chief Minister Syed Murad Ali Shah demanded this in a letter to Adviser to Prime Minister on Finance and Economic Affairs Dr Hafeez Shaikh with reference to a news report appeared in the national press that read: “The government has conceded to the IMF that the present arrangement of four provincial authorities and one federal looking at goods and services tax has increased the cost of doing business in an exponential manner and large businesses have been complaining about the compliance cost. In three years time, we will move to a single tax collection agency with one return and auditing authority to cut down on compliance costs,” the government has told the Fund.
DGKC, MLCF, ISL, SNGP and ATRL would try to resist against negative momentum, while TRG, ASL, FFL and SSGC would remain in laggards.
Technical Analysis
The Benchmark KSE100 index have confirmed an evening shooting star on daily chart during last trading session but now it have a strong supportive region standing ahead at 36,430 where it would try to find support at descending trend line along with a horizontal supportive region. It's expected that index would try to recover after a dip during current trading session because hourly momentum indicators have reached an oversold region and these would try to push index backward before 36,100 points. It's recommended to stay cautious because closing below 36,430 would call for a bearish breakout which may lead index towards 35,800 or 35,500 points where index would find a very strong support therefore it's recommended to wait for a dip and then start buying in chunks with strict stop loss of 35,800 points.
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