PSX Daily Market Review - 4th March 2019

Trading volume at PSX floor dropped by 22.19 million shares or 13.92% on DoD basis, whereas the benchmark KSE100 index opened at 39,083.98, posted a day high of 39,713.42 and a day low of 39,054.61 points during last trading session while session suspended at 39,539.01 with net change of 484.40 points and net trading volume of 94.69 million shares. Daily trading volume of KSE100 listed companies dropped by 7.64 million shares or 7.47% on DoD basis.
Foreign Investors remained in net selling positions of 3.91 million shares and net value of Foreign Inflow dropped by 2.46 million US Dollars. Categorically, Foreign Individuals and Corporate remained in net selling positions of 0.10 and 5.15 million shares but and Overseas Pakistani Investors remained in net buying positions of 1.35 million shares respectively. While on the other side Local Individuals, Companies and Insurance Companies remained in net buying positions of 8.74, 0.80 and 5.09 million shares but Banks, NBFCs, Mutual Fund and Brokers remained in net selling positions of 1.95, 2.00, 3.67 and 0.52 million shares respectively.

Stocks jump on signs U.S., China close to trade deal
Asian shares gained on Monday on reports the United States and China were close to striking a trade deal after a year-long tariff skirmish while the dollar eased as traders wagered Federal Reserve policy would remain accommodative. The Wall Street Journal reported Washington could lift most or all of its tariffs on Beijing while a summit between U.S. President Donald Trump and his Chinese counterpart Xi Jinping to sign a final trade deal could happen later this month. That followed comments from Trump on Friday that he had asked China to immediately remove all tariffs on U.S. agricultural products because trade talks were progressing well. He also delayed previously scheduled plans to impose 25 percent tariffs on Chinese goods.
Gwadar oil facility has potential to capture China, Central Asian markets
A state-of-the-art oil refinery and petrochemical complex, being established at Gwadar deep seaport city, has tremendous potential to capture markets in China and Central Asian landlocked states where fuel supply takes weeks to reach through other routes. READ MORE: Syrian army repels militant attack, two soldiers injured: source Under the China Pakistan Economic Corridor (CPEC), the fuel transportation to China via Pakistan would take just seven days as import through western China takes almost 40 days, an official source privy to the Petroleum sector developments told APP.
Telecom, computer services exports grow 3.78pc
Pakistan earned $539.710 million from the exports of telecommunication, computer and information services during the first half of the current fiscal year, showing growth of 3.78 percent when compared to $520.043 million trade of these services during corresponding period of last year. READ MORE: Syrian army repels militant attack, two soldiers injured: source Among the telecommunication sector, the services of call centers grew by 9.28 percent, from $45.424 million during July-December (2018-19) to $49.640 million during July-December (2018-19), according to the latest data of Pakistan Bureau of Statistics (PBS).
Govt to finance provision of gas, electricity to all SEZs
The government has decided to finance the cost of provision of gas and electricity to all the Special Economic Zones (SEZs) out of the Public Sector Development Pro­gramme (PSDP) and withdraw provincial mark-up support and federal freight subsidy to SEZs under the China-Pakistan Economic Corridor (CPEC). The Economic Coordina­tion Committee (ECC) of the Cabinet “directed the Board of Investment (BoI) to submit the case to the cabinet for withdrawal of the two additional incentive packages for SEZs under the CPEC programme — mark-up support by the provincial governments and freight subsidy by the federal government”, according to minutes of a recent meeting of the ECC.
TEconomics and the war drums
WAR is a problem not a solution. The world has learned this the hard way. The long and arduous Afghan war between the most and the least powerful nations in the last decades has reminded us of this time and again. Besides the immediate death and destruction, war turns the development cycle backwards by mounting the crushing pressure of the conflict’s financial cost on already distressed public fiscals. It also compromises the future by scaring and sidelining the drivers of investment and growth.

The Benchmark KSE100 Index have succeeded in closing above its initial resistant region of 39,500 points during last trading session and a weekly hammer have been formatted during last trading session to counter impact of previous evening shooting star. It’s expected now that index would try to continue its bullish momentum towards 40,000 and 40,250 points on short term basis while on intraday basis index would face an initial resistance at 39,760 points. It’s recommended to stay cautious while trading during current trading session because index is trying to change its short term trend towards bullish side but index would remain volatile until it close above 40,500 points on weekly basis. While on flipside index would try to find support at 39,300 and 39,000 points against any kind of pressure during current trading session.