PSX Daily Market Review - 6th Sep 2019

Trading volume at PSX floor increased by 17.65 million shares or 13.69% on DoD basis, whereas the benchmark KSE100 index opened at 30,244.73, posted a day high of 30,743.62 and a day low of30,145.35 points during last trading session while session suspended at 30,217.77 points with net change of -29.96 points and net trading volume of 111.50 million shares. Daily trading volume of KSE100 listed companies increased by 4.15 million shares or 3.87% on DoD basis.
Foreign Investors remained in net selling positions of 13.21 million shares and net value of Foreign Inflow dropped by 0.58 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistani remained in net selling positions of 13.09 and 0.51 million shares but Foreign Individuals Investors remained in net buying positions of 0.39 million shares. While on the other side Local Individuals, Local Companies and Insurance Companies remained in net buying positions of 13.55, 1.61and 1.31 million shares but Banks, NBFCs. Mutual Funds and Brokers remained in net selling positions of 0.56, 0.02, 1.03 and 3.34 million shares respectively.

Asia shares rise on trade war hopes, firm U.S. data; safe havens sold
Asian stocks joined global peers and rose on Friday while safe havens such as government bonds and the yen were on the defensive amid hopes for easing U.S.-China trade tensions and as firm U.S. economic data increased risk appetites. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.4%, putting it on track for a 2.2% weekly gain - which would make it the best week since mid-June. The Shanghai Composite Index was up 0.2% and Hong Kong’s Hang Seng rose 0.6%. Australian stocks gained 0.6%, South Korea’s KOSPI climbed 0.3% and Japan’s Nikkei advanced 0.6%. Global equity markets welcomed news that the United States and China agreed on Thursday to hold high-level talks early in October, raising hopes for substantial progress in de-escalating their long, bitter trade conflict.
Pakistan, Saudi Arabia review progress on energy MoUs
Pakistan and Saudi Arabia on Thursday reviewed progress on the existing Memorandums of Understanding (MoUs) in energy sector and discussed possibilities for further expansion of mutual cooperation between the two countries in diverse fields. In a delegation level meeting, the two sides resolved to expedite the work on different MoUs signed in February this year for setting up $10 billion oil refinery, $1 billion petrochemical complex, installation of two Re-gassified Liquefied Petroleum Gas (RLNG) plants with an estimated cost of $4 billion and $2 billion investment in mineral development sector.
Urea price may surge Rs200 per bag
The Fertilizer Companies are likely to increase the Urea price by Rs200 per bag, after the government decision to withdraw Gas Infrastructure Development Cess (GIDC) ordinance. The decision to increase the price by Rs200 will take the per bag price of Urea from the existing Rs1840 to Rs2040 per bag. The impact of gas price increase has not been passed on since July 2019 in anticipation of a GIDC settlement but now in the changing scenario it has decided to pass on the burden of Rs200 per bag to the consumers, source told The Nation.
Govt moves for early SC hearing on GIDC pleas
In line with directives of the Prime Minister Office, the attorney general’s office is busy collecting relevant data for moving an urgent application before the Supreme Court for an early hearing of pending petitions relating to the Gas Development Infrastructure Cess (GIDC) case. On Wednesday, Prime Minister Imran Khan while withdrawing the GIDC (Amendment) Ordinance, 2019 directed Attorney General Anwar Mansoor to move an application for urgent hearing in the Supreme Court so that the matter is decided at the earliest strictly in accordance with the law and the constitution. An informed source told Dawn that the application was expected to be filed before the apex court on Friday.
Government resolves to revive sick textile units
Adviser to Prime Minister on Commerce and Textile Razak Dawood, on Thursday said that government is taking all steps to attract foreign and domestic investment for new plants and operationalisation of sick units of textile sector on competitive basis. He made these remarks in a meeting with textile exporters’ delegation. The meeting discussed issues pertaining to textile industry in order to enhance export of the country. The Adviser stressed upon the need to increase existing installed capacity of the manufacturing sector to increase the industrial base of the economy.

The Benchmark KSE100 index have dropped back after getting resistance from a horizontal resistant regions and it could not penetrate above its initial resistant region of 30,860 points during last trading session and have formatted a hammer on daily chart. As of now it's expected that index would remain bearish during current trading session and index would try to close below its initial supportive region of 30,200 points and on intraday basis it's expected that if it would succeed in sliding below 30,000 points then a bottom around 29,700 points could be witnessed. It's recommended to practice caution while trading during current trading session.

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