PSX Daily Market Review - 7th May 2019

Trading volume at PSX floor increased by 7.08 million shares or 11.01% on DoD basis, whereas the benchmark KSE100 index opened at 36,127.08, posted a day high of 36,191.43 and a day low of 35,570.38 points during last trading session while session suspended at 35,605.42 with net change of -517.53 points and net trading volume of 54.35 million shares. Daily trading volume of KSE100 listed companies increased by 5.78 million shares or 11.89 on DoD basis.
Foreign Investors remained in net buying positions of 6.13 million shares and net value of Foreign Inflow increased by 4.47 million US Dollars. Categorically, Foreign Corporate and Overseas Pakistanis remained in net buying positions of 5.56 and 0.65 million shares but Foreign Individuals remained in net selling positions of 0.08 million shares. While on the other side Local Individuals, Companies, Banks, Mutual Fund and Insurance Companies remained in net selling positions of 0.35, 2.80, 1.32, 4.97 and 0.58 million shares respectively but NBFCs and Brokers remained in net selling positions of 0.10 and 3.44 million shares respectively.

Asia shares linger near five-week low amid renewed U.S.-China trade jitters
Asian shares wallowed near five-week lows on early Tuesday after U.S. President Donald Trump’s threat to raise tariffs re-ignited worries about U.S.-China trade tensions while Japan’s Nikkei opened down after a 10-day break. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped as much as 0.2 percent to five-week low marked on Monday. Japan’s Nikkei shed 1.1 percent to 22,006.58, taking a delayed hit after the country’s financial markets opened after a 10-day market break to mark the ascension of Japan’s new emperor to the throne. U.S. stock futures for the S&P 500 declined as much as 0.7 percent in Asia on Tuesday as top U.S. trade officials said China had backtracked on commitments in trade talks. Their comments came after global financial markets had reeled on Monday after Trump had unexpectedly jacked up pressure on China to reach a trade deal in the midst of negotiations, saying he would hike U.S. tariffs on Chinese goods this week.
IMF wants abolition of Rs700 bn tax exemptions
Pakistan and the IMF talks have entered into most critical phase of evolving consensus on number crunching of key economic sectors and required policy actions to strike a staff level agreement. In this make or break phase, the IMF has placed a condition to abolish tax exemptions of over Rs700 billion in two years and the PTI led government will have to abolish major tax exemptions of sales tax, income tax and customs duty in the range of Rs350 billion in the coming budget 2019-20.
Government intends to borrow Rs 4.7 trillion in May-July
The cash-strapped government intends to borrow Rs 4.7 trillion from banking sector during the next three months (May-July) of 2019 for tackling fiscal deficit. The State Bank of Pakistan (SBP) has issued three calendars for the auction of Market Treasury Bills (MTBs), Pakistan Investment Bond (PIBs) Floating Rate and PIBs Fixed Rate. According to these calendars, the federal government has set a tentative target of Rs 4.75 trillion for borrowing from domestic banking sector during May-July to meet its financial needs.
Final phase of drilling at Kekra-1 continues
At last the drilling at Kekra-1 well in G-bloc, Pakistan’s ultra-deep sea has begun after a long pause of over almost 23 days and entered the final phase by reaching the depth of 5,148 meters and will reach at the required depth of 5,460 meters within days, a senior official told The News.
‘Governor Baqir expected to toe IMF’s line on exchange, policy rates’
A seasoned IMF economist Reza Baqir has to roll up sleeves to balance out free-float exchange rate, neutralise FATF’s impact, and bring the economy out of turmoil during his just-starting stint as the central bank’s head, financial sector’s experts and industrialists said on Monday.

The Benchmark KSE100 Index have succeeded in penetration below its initial supportive region of 35,800 points and right now it's expected that it would try to bounce back before 35,500 points on intraday basis because hourly momentum indicators have reached oversold region and these are ready for a bullish crossover which would try lead index upward for an intraday spike. While on daily and weekly chart a strong descending trend line is trying to support index at 35,500 points and it's expected that index would try to bounce back above this trend line before weekly closing if a false breakout would happen. It's recommended to stay cautious while trading because if index would succeed in penetration below 35,500 points on daily closing basis then it can take a dip towards 34,600 points before weekly closing. For current trading session it's recommended to start buying on dip for intraday trading.