PSX Daily Market Review - 5th July 2018

Trading volume at PSX floor increased by 13.52 million shares or 12.99% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 41,548.23, posted a day high of 41,41548.23 and a day low of 40,274.72 during last trading session. The session suspended at 40,345.68 with net change of -1218.74 and net trading volume of 74.72 million shares. Daily trading volume of KSE100 listed companies dropped by 32.41 million shares or 76.59% on DoD basis.
Foreign Investors remained in net selling position of 5.49 million shares and net value of Foreign Inflow dropped by 3.04 million US Dollars. Categorically, Foreign Individuals remained in net buying positions of 0.07 million shares but Foreign Corporate and Overseas Pakistanis investors remained in net selling positions of 4.09 and 1.47 million shares. While on the other side Local Individuals, Local Companies, Banks and Insurance Companies remained in net buying positions of 5.76, 2.32, 0.09 and 1.54 million shares but NBFCs, Mutual Fund and Brokers remained in net selling positions of 0.03, 2.60 and 0.73 million shares respectively.

Asian stocks wobbly before tariff deadline in Sino-U.S. trade row
Asian stocks were shaky while major currencies barely budged in early trade on Thursday, as financial markets remained in a state of anxious uncertainty on the eve of a U.S. deadline to slap tariffs on Chinese imports. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1 percent, having moved in and out of the red in early trade. The index has lost 1.6 percent this week, during which it plumbed a nine-month low. Asia was bereft of the usual leads as the U.S. markets were closed on Wednesday for the Independence Day holiday. U.S. stock futures were marginally higher, pointing to a stronger open for Wall Street later in the day.
Pakistan, China for keeping up momentum of partnership
Chinese Ambassador Yao Jing called on Finance Minister Dr Shamshad Akhtar here on Wednesday. During the meeting, they discussed Pak-China economic cooperation in various sectors and also had exchange of views on projects being undertaken under the ambit of CPEC. Finance minister highly appreciated the continued cooperation provided by China in economic development of the country. The minister also briefly shared with the Chinese envoy Pakistan's standpoint on FATF issues presented at the just concluded conference at Paris. She said Pakistan strongly reiterated its commitment in taking all possible steps against terror financing and money laundering.
FBR exempts vintage cars from duties
The Federal Board of Revenue (FBR) has exempted vintage or classic cars and jeeps meant for transport of persons from various duties, according to notification issued here. "Federal government is pleased to exempt vintage or classic cars and jeeps meant for transport of persons on the import thereof from so much of the customs-duty, regulatory duty, additional customs duty, federal excise duty, sales tax and withholding tax as are in excess of the cumulative amount of US dollars five thousand per unit," said the FBR notification.–APP The duties have been exempted in exercise of the powers of Customs Act 1969, Federal Excise Act 2005 and Sales Tax Act. However, it clarified that vintage or classic cars and jeeps mean old and used automotive vehicles, falling under PCT Code 87.03 of the First Schedule to the Customs Act 1969(IV of 1969), manufactured prior to January 1st, 1968.
Country can face severe gas crisis
In Pakistan, in addition to water crisis, a severe gas crisis is also on the horizon. The gas crisis can be attributed to poor vision of Musharraf government which decided to promote CNG stations for short term gains and the unfortunate geopolitical environments in the region that have restrained implementation of TAPI and Iran Pakistan Pipeline. The policy of burning gas as cheap fuel has led to a situation, where the sectors adding value to the natural gas with no substitute raw material will suffer and have ultimate negative impact on economy and food security. The demand and supply situation of gas has been changed from affluence to deficiency and after 2006 the country has entered into the deficiency phase. The natural gas proven reserves of Pakistan at the end of 2012 were 22.7 trillion cubic feet (0.6 trillion cubic meters) with reserve to production ratio is 15.511 (R/P ratio).
Envoy hopes more US firms to invest in Pakistan
Pakistan's new ambassador to the United States Ali Siddiqui expects some large American companies to enter Pakistan as he envisions a growing trade and commercial ties between the two countries, mainly in the oil and gas sector. In his wide-ranging interviews with Bloomberg TV and Bloomberg Radio, Ambassador Ali Jehangir Siddiqui said that Pakistan and the United States have been long-time allies with more than 70 years of relationship, and said that two countries are working together in many areas, including a shared interest of restoring peace in Afghanistan. The ambassador highlighted the immense potential for business and trades ties between the two countries, especially in the oil and gas sector.

The Benchmark KSE100 Index is trying to continue its bullish rally on hourly chart but chances of evening star on daily chart are still intact and index have major resistances ahead at 42,310 and 42,950 points from its 50% correction along with major horizontal resistant regions. It’s also capped by a descending trend line on daily chart which is generating a crossover with a horizontal resistant region at 42,310 points and these both elements would create a strong resistance for the index. Weekly momentum is already in bearish mode therefore it’s recommended to initiate selling on strength with strict stop loss of 42,310 initially. On supportive side index have supportive regions at 41,000 and 40,900 points.