PSX Daily Market Review - 6th Feb 2019

Trading volume at PSX floor increased by 25.19 million shares or 11.00% on DoD basis, whereas the benchmark KSE100 index opened at 41,209.08, posted a day high of 41,630.13 and a day low of 41,112.71 points during last trading session while session suspended at 41,614.39 with net change of 501.68 points and net trading volume of 138.38 million shares. Daily trading volume of KSE100 listed companies increased by 10.83 million shares or 8.49% on DoD basis.
Foreign Investors remained in net buying positions of 0.77 million shares but net value of Foreign Inflow dropped by 0.72 million US Dollars. Categorically, Foreign Individuals remained in net buying positions of 0.86 million shares and Foreign Corporate and Overseas Pakistanis investors remained in net selling positions of 0.07 and 0.02 million shares. While on the other side Local Individuals, Mutual Fund and Insurance Companies remained in net selling positions of 2.71, 10.36 and 0.98 million shares but Local Companies, Banks and Brokers remained in net buying positions of 6.93, 1.77 and 2.93 million shares respectively.

Asian shares mark time before Trump speech
Asian shares started cautiously on Wednesday as investors waited to see if U.S. President Donald Trump drops any hints of progress on tariffs in his State of the Union speech. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat with China and several other markets in the region still closed for the Lunar New Year holiday. Japan’s Nikkei edged up 0.3 percent, while E-Mini futures for the S&P 500 barely budged. Dow Jones reported on Tuesday that U.S. Treasury Secretary Steve Mnuchin and Trade Representative Robert Lighthizer plan to hold talks in Beijing early next week, citing an unidentified senior administration official.
PIAF calls for early payment of ST refunds
Pakistan Industrial and Traders Associations Front (PIAF) former chairman Irfan Iqbal Shiekh has urged the Federal Board of Revenue (FBR) to early release Refund Payment Orders (RPOs) against pending sales tax refunds. He said that PIAF has welcomed announcement of issuance of promissory notes to clear huge amount of long outstanding sales tax refund.
RCCI links regional uplift to Kashmir solution
Rawalpindi Chamber of Commerce and Industry (RCCI) President Malik Shahid Saleem said that Kashmir is the unfinished agenda of partition plan and the UN-sponsored plebiscite is the only solution to this issue. In his message on the Kashmir Solidarity Day, the RCCI president said that traders always stand with Kashmiri people and will always vocal for their right of self determination.
Goldman Sachs plans cuts in trading unit: WSJ
Goldman Sachs Group Inc plans to chop its commodities business after a months-long review showed the business was using too much capital for too little profit, the Wall Street Journal reported on.wsj.com/2Dad9QQ on Tuesday, citing people familiar with the matter. Goldman is discussing pulling back in physical trading of iron ore, platinum and other metals, the WSJ report said, adding the reductions in the business will be presented to the board later this month. The proposed cuts come after Goldman reported an 18 percent decline in its fourth-quarter fixed income, currency and commodities business, which used to be a bigger and more profitable part of the bank’s central operations once upon a time.
CPEC phase-I to complete till Oct 2019: China
Ambassador of China to Pakistan Yao Jing on Tuesday said China Pakistan Economic Corridor (CPEC) phase-I would be completed till October 2019. “Abbottabad is the gateway to CPEC. China completely support Kashmiri’s struggle,” he said while talking to media persons after Chinese New Year celebrations. He further said that they have enjoyed a lot the celebrations of the new Chinese year in Abbottabad adding that CPEC played vital role between China Pakistan relations and we would increase cooperation in other sectors.

The Benchmark KSE100 Index is inching up on daily bases and now it has reached near to its major resistant region of 41,860 points where it could face a strong resistance and in case of breakout of this region index would try to target 42,200 and 42,800 points in coming days. Index have not taken correction since it started its current bullish rally from 37,600 points and now it have moved 4,000 points straight in a row therefore it can be expected that if index would not succeed in closing above 41,800 points then it can start correction which may lead index towards 39,500 points. It’s recommended to post trailing stop losses at long positions because if index would not succeed in penetration of 41,800 or 42,200 points then a massive selling pressure could be witnessed from week holders along with institutions as well. For current trading session index would find supports at 41,300 and 41,100 points.