PSX Daily Market Review - 7th Feb 2019

Trading volume at PSX floor dropped by 48.94 million shares or 19.26% on DoD basis, whereas the benchmark KSE100 index opened at 41,693.37, posted a day high of 41,766.93 and a day low of 41,417.82 points during last trading session while session suspended at 41,505.68 with net change of -108.71 points and net trading volume of 118.36 million shares. Daily trading volume of KSE100 listed companies dropped by 20.02 million shares or 14.47% on DoD basis.
Foreign Investors remained in net buying positions of 5.67 million shares and net value of Foreign Inflow increased by 6.40 million US Dollars. Categorically, Foreign Individuals remained in net selling positions of 0.09 million shares and Foreign Corporate and Overseas Pakistanis investors remained in net buying positions of 5.63 and 0.14 million shares. While on the other side Local Individuals, Banks, Mutual Fund and Brokers remained in net selling positions of 4.07, 0.21, 8.68 and 0.47 million shares but Local Companies, NBFCs and Insurance Companies remained in net buying positions of 0.88, 0.11 and 7.39 million shares respectively.

Asian shares doze in data lull, New Zealand dollar takes a dive
Asian share markets were in a muted mood on Thursday and looked set for a sleepy session with China still on holiday and no major economic data on the diary. MSCI’s broadest index of Asia-Pacific shares outside Japan was little moved in early trade after ending almost unchanged on Wednesday. Japan’s Nikkei dipped 0.2 percent, while E-Mini futures for the S&P 500 were off 0.06 percent in very thin trade. Wall Street had already snoozed through a subdued session, though disappointing revenue forecasts hammered shares of the major videogame makers.
FBR told to focus on simplifying tax collection system
Minister of State for Revenue Hammad Azhar on Wednesday instructed the Federal Board of Revenue (FBR) to focus on simplifying the tax collection system while acknowledging the need for new legislation in this regard, Radio Pakistan reported. The state minister's directives came during a speech at the three-day International Conference on Taxation at the FBR's Lahore office.
NFC award to be based on 2017 population census
Amid provincial opposition to finance additional federal responsibilities, the reconstituted 9th National Finance Commission (NFC) agreed on Wednesday to base next resource distribution award on sixth population census of 2017 and involve provinces in dialogue with the International Monetary Fund. The maiden meeting of NFC, presided over by Finance Minister Asad Umar, also constituted six working groups on various subjects and agreed upon the need for additional resource mobilisation to face challenges of sustainable fiscal structure, equitable social development and poverty alleviation.
Budget deficit likely to touch Rs2.39 trillion
Pakistan budget deficit is projected to touch highest-ever level of Rs2.39 trillion during ongoing fiscal year 2018-19 despite introducing mini budgets and massively slashing the development budget. The country’s budget deficit would widen to Rs2.39 trillion in the current financial year, which would be equal to 6.3 percent of the gross domestic product (GDP). The budget deficit would be highest ever by exceeding the previous level of Rs2.24 trillion. The ministry of finance has presented the data in the meeting of National Finance Commission (NFC), which is available with The Nation.
Pakistan, Russia sign agreement for $10b project
Pakistan and Russia Wednesday signed Inter Corporate Agreement to conduct feasibility study of $10 billion offshore gas pipeline project. Under the agreement, Russian state run company Gazprom will conduct a feasibility study to build offshore pipeline from Iran to Pakistan. The Inter Corporate Agreement was signed here by Managing Director Inter State Gas Systems, Mobin Saulat, and Vitaly A Markelov of Gazprom on the behalf of their respective companies.

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.