PSX Daily Market Review - 7th Aug 2019

Trading volume at PSX floor increased by 2.31 million shares or 4.45% on DoD basis, whereas the benchmark KSE100 index opened at 31,180.80, posted a day high of 31,330.04 and a day low of 30,946.73 points during last trading session while session suspended at 31,000.67 points with net change of -180.13 points and net trading volume of 41.94 million shares. Daily trading volume of KSE100 listed companies increased by 2.64 million shares or 6.72% on DoD basis.
Foreign Investors remained in net long positions of 0.44 million shares but net value of Foreign Inflow dropped by 0.37 million US Dollars. Categorically, Foreign Corporate investors remained in net selling long positions of 0.46 million shares. While on the other side Local Individuals, Banks and Brokers remained in net long positions of 0.77, 5.44 and 0.23 million shares but Local Companies, Mutual Funds and Insurance Companies remained in net selling positions of 2.0, 3.9 and 0.89 million shares respectively.

Trump dismisses fears of long-lasting trade war
U.S. President Donald Trump dismissed fears of a protracted trade war with China on Tuesday despite a warning from Beijing that labeling it a currency manipulator would have severe consequences for the global financial order. Trump, who announced last week he would slap a 10% tariff on a further $300 billion in Chinese imports starting on Sept. 1, tweeted that “massive amounts of money from China and other parts of the world” were pouring into the U.S. economy.
CDWP approves 15 projects worth Rs32.5 billion
Central Development Working Party (CDWP) Tuesday approved 15 projects worth Rs32.5 billion. Central Development Working Party (CDWP), which met under its new Deputy Chairman Planning Commission Dr Muhammad Jahanzeb Khan, approved 12 projects worth Rs.14.5 billion and recommended 03 projects worth Rs.18 billion to ECNEC for consideration. Secretary Planning Zafar Hasan, senior officials from federal and provincial governments were also present in the meeting. Projects related to energy, information technology, water resources, health, science & technology, physical planning & housing, transport & communications, nutrition and food & agriculture were presented in the meeting.
Nepra approves 9 paisas reduction in power tariff
The National Electric Power Regulatory Authority (Nepra) on Tuesday approved reduction of Rs0.9 per unit in electricity tariff for all the power distribution companies on account of fuel price adjustment for June 2019. Rejecting the Central Power Purchasing Agency (CPPA) recommendation for increase the power by Rs0.0669 per unit, NEPRA has reduced the rate by Rs0.9 per unit. The decision of decrease was made by the regulator in a public hearing on the petition filed by the Central Power Purchasing Agency (CPPA) on behalf of the distribution companies (DISCOs). The CPPA had sought the permission for increasing of 0.0669 per unit from power consumers and pleaded that it had charged reference fuel price of Rs5.1130 per unit from consumers in June, while the cost was Rs5.180 per unit.
JICA to help auto industry enhance cars production
apan International Cooperation Agency (JICA) on Tuesday announced to assist the automobile industry in order to enhance its domestic production from existing 200,000 cars by introducing new safety and environment friendly features. A delegation of JICA headed by its Chief Representative Shigeki Furuta called on Razak Dawood, Adviser to Prime Minister on Commerce and Textile. Furuta ensured that JICA will provide assistance for economic development of Pakistan owing to the improvement of investment regime in the country. Better business climate and supporting activities of Japanese Automobile Companies (Suzuki, Toyota and Honda) in Pakistan including promotion of their associated industry in Pakistan was deliberated in the meeting. Moreover, JICA will also support in developing requisite regulations for the said new features and establishing inspection infrastructure for testing of new & used vehicles of insurance safety of the consumers, JICA chief highlighted.
Actions against banned outfits key to exiting FATF list: US
The United States has asked Pakistan to show tangible and satisfactory actions against banned organisations and their leaderships to pacify more countries towards supporting its case to move out of the grey list of Financial Action Task Force (FATF). A senior government official told Dawn that a US delegation was in Islamabad to have an independent assessment of steps, actions and measures identified during the Florida meetings of the FATF in June this year and the progress made by Pakistan since then.

The Benchmark KS100 index have amended its previous low during last trading session and have slide below a strong supportive region of 31,500 n points, as of now daily and weekly momentum indicators have changed their direction towards bearish side and these would try to lead index towards 30,700 and 30,200 points in coming days, but hourly momentum indicators are trying to generate a hope but bulls because hourly Stochastic have generated a bullish crossover while MAORSI is ready for that. It's recommended to stay cautious while initiating new long or short positions because index would show some serious volatility this week and some cheat patterns could be witnessed on charts therefore trading with strict stop loss or minimum trailing stop loss is recommended.