PSX Daily Market Review - 4th April 2019

Trading volume at PSX floor increased by 8.71 million shares or 6.02% on DoD basis, whereas the benchmark KSE100 index opened at 38,050.80, posted a day high of 38,119.14 and a day low of 37,855.09 points during last trading session while session suspended at 38,022.80 with net change of -13.23 points and net trading volume of 63.00million shares. Daily trading volume of KSE100 listed companies dropped by 2.29 million shares or 3.51% on DoD basis.
Foreign Investors remained in net selling positions of 1.72 million shares and net value of foreign inflow dropped by 0.45 US Dollars. Categorically, Foreign Individuals and Overseas Pakistanis remained in net buying positions of 0.13 and 1.41 million shares but Foreign Corporate investors remained in net buying positions of 1.41 million shares. While on the other side Local Individuals, Local Companies and Banks remained in net buying positions of 7.36, 3.06 and 2.15 million shares respectively but NBFCs, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 2.34, 5.89, 0.99 and 1.35 million shares respectively.

Asian shares near eight-month highs, U.S.-China talks in view
Asian shares held near an eight-month peak on Thursday as investors awaited developments on Sino-U.S. trade talks, with both sides appearing closer to signing a deal and improved risk appetite weighing on safe-haven assets like the yen. MSCI’s broadest index of Asia-Pacific shares outside Japan took a breather after five straight days of gains took it to its highest since late August. Chinese shares started firm with the blue-chip index up 0.9 percent. Hong Kong’s Hang Seng index was a tad softer. Japan’s Nikkei nudged 0.2 percent higher to stay near a recent one-month top.
ECC approves immediate import of 100,000 tonnes of urea
The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved immediate import of 100,000 tonnes of urea in order to facilitate the farmers. Finance Minister Asad Umar chaired a meeting of the ECC. The Industries and Production Division briefed the Committee about the availability of urea in the country. In order to facilitate the farmers and meet their urea’s demand, the Committee approved immediate import of 100,000 tonnes of urea. Besides, it decided to allow additional import of Urea in the event of any demand-supply gap. The ECC directed the Ministry of Industries and Production to review the price mechanism of fertilizer industry for ensuring provision of urea to farmers at cheaper rates.
LCCI debuts at China exhibition
The Lahore Chamber of Commerce & Industry has become the first chamber of the country to take part in China International Agrochemical & Crop Protection Equipment Exhibition (CIA-CACE) in Shangai and highlighted Pakistan’s strength before the leading global players in this particular sector. The chamber was represented by its former Executive Committee Member Muhammad Nadeem Qureshi, an expert having strong grip on agriculture sector, economic issues. The Management of CCPIT Sub-Council of Chemical Industry had invited the LCCI president to be the guest at the 20th Celebrations. LCCI is the first business chamber and the co-partner of CCPIT has privileged to participate in 3 days CACE Exhibition. President Almas Hyder nominated Nadeem Qureshi, Chairman organising committee CAC Pakistan Summit to attend the event on his behalf.
Asad Umar defends govt's economic policy, acknowledges painful impact
Finance Minister Asad Umar on Wednesday addressed a live Question and Answer session on the state of the country's economy. The session, broadcast live from social media accounts operated by the ruling Pakistan Tehreek-i-Insaf (PTI), saw the finance minister answer queries from an assortment of journalists from new and old media. Umar identified several reasons why the economy is in a bad shape, but assured that there will be light at the end of the tunnel. "There are two reasons why were are in this mess. We have a budget deficit, and secondly, our external deficit," he said. "To resolve this you either need to increase exports or decrease imports. Our immediate action was to cut imports, which slows down the economy."
Pakistan’s external debts to reach $120 billion in two years
Pakistan’s external debt level would increase to $120 billion in next two years due to the government’s continuous borrowing from International Monetary Fund (IMF) and friendly countries like China, Saudi Arabia and United Arab Emirates (UAE). Renowned economist and former finance minister Dr Hafeez A Pasha has projected that external financing requirement over the three year period would add up to $66 billion. “The primary sources of financing continuous to be borrowing, both public and private. This will necessitate a relatively large size of the IMF program and higher level of support from countries like China, UAE, and Saudi Arabia,” Pasha said in his book titled ‘Growth and Inequality –Agenda for Reforms’. He estimated that level of external debt is expected to rise from $96 billion in 2017-18 to $120 billion by 2020-21.

ENGRO, DGKC, PSO and FFL would try to resist against current bearish pressure ISL, SNGP and SSGC would remain in laggards on the board.

The Benchmark KSE100 index is trying to maintain momentum above a descending trend line since last three trading session but momentum indicators are still in bearish mode on daily chart and these are trying to push index in downward direction. As of now index have supportive regions ahead at 37,760 and 37,500 points and these both regions fall on a horizontal supportive region and a crossover of a trend line with a horizontal line respectively. While on flip side index would face resistances at 38,500 & 38,800 points in case of a bounce back. It’s recommended to stay cautious while initiating new trades today because if index would succeed in sliding below 38,000 points on daily closing basis then some serious pressure would be witnessed in coming days.