PSX Daily Market Review - 8th Feb 2019

Trading volume at PSX floor dropped by 67.5 million shares or 32.9% on DoD basis, whereas the benchmark KSE100 index opened at 41,529.25, posted a day high of 41,606.27 and a day low of 41,289.12 points during last trading session while session suspended at 41,332.75 with net change of -172.93 points and net trading volume of 64.17 million shares. Daily trading volume of KSE100 listed companies dropped by 54.19 million shares or 45.78% on DoD basis.
Foreign Investors remained in net buying positions of 5.45 million shares and net value of Foreign Inflow increased by 3.36 million US Dollars. Categorically, Foreign Individuals remained in net selling positions of 0.12 million shares but Foreign Corporate and Overseas Pakistani investors remained in net buying positions of 4.79 and 0.78 million shares. While on the other side Local Individuals, Companies, Banks Mutual Funds, Brokers and Insurance Companies remained in net selling positions of 2.3, 0.97, 1.92, 0.16, 0.79 and 0.92 million shares respectively but NBFCs remained in net buying positions of 2.5 million shares.

Asia stocks fall on renewed anxiety over trade, growth risks
Asian stocks lost ground on Friday as investors worried about a broadening global economic slowdown, with sentiment not helped by the absence of any positive signs for a resolution in the U.S.-China trade row. Safe-haven government bonds benefited in the face of growing anxiety over the global outlook, with German long-term debt yields falling to their lowest in over two years. MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.7 percent, easing back from a four-month peak touched the previous day. The index was down 0.3 percent on the week. Hong Kong’s Hang Seng lost 0.8 percent and South Korea’s KOSPI retreated 1.2 percent. Japan’s Nikkei tumbled 1.6 percent.
Govt to waive off Rs200b under GIDC settlement mechanism
The government will waive off Rs 200 billion of the outstanding amount to various sectors under the Gas Infrastructure Development Cess (GIDC) settlement mechanism. Out of the total Rs 416 outstanding billed and un-billed GIDC the government will waive off half or Rs 208 billion to fertilizer, IPPs, industries, Gencos /K-Electric, captive power and CNG sectors, official document revealed. Interestingly these sectors have already collected billions of rupees GIDC from the consumers and now instead of returning to the consumers the government is providing it as an amnesty to the big industries.
Punjab to establish 6-8 new industrial zones
The provincial government is working hard to provide maximum facilities to promote local industry and under Ease of Doing Business (EODB), the government is committed to provide all facilities under one roof. “I will be visiting all chambers of commerce in Punjab to get feedback, suggestions and recommendations on tariffs, taxation and reforms. Punjab government will establish 6 to 8 new industrial zones and this will help local industry to flourish,” said Punjab Chairman Board of Investment (BOI) Sardar Tanveer Ilyas during his visit to the Rawalpindi Chamber Of Commerce and Industry (RCCI) here on Thursday. He said that the Punjab government was committed to provide maximum facilities to overseas investors and traders. Local manufacturers, industrialists and investors will be given equal opportunities and incentives, he added.
GNL to begin rolling out three Nissan models in 2020
Commercial production of three Nissan models will begin in the second half of 2020. “We will begin with the assembly of a 1,200cc Datsun Cross in July 2020 and then roll out the 1,200cc Datsun Go (five seater) and Datsun Go Plus (seven seater) in the next two to three months,” Ghandhara Nissan Ltd (GNL) Project Director and Senior Executive Director Marketing and Sales Muazzam Pervez Khan told Dawn on Thursday. “The company has also selected at least 22 vendors for making parts of these vehicles,” he added. Talking about the localisation level in these three variants, he said the company plans to achieve 35-40 per cent indigenisation in the next three years after an initial start of 18pc.
Govt to place formula for revival of tax on mobile phone cards before SC
The government will present an alternative formula to the Supreme Court for revival of taxes on mobile phone cards to bridge the revenue shortfall and meet budgetary target instead of imposing any new taxes in the next five months. “No new taxes will be imposed in the current fiscal year to achieve revenue target as prior conditions for availing the International Monetary Fund (IMF) bailout package,” said State Minister for Revenue Hammad Azhar here on Thursday.

The Benchmark KSE100 Index have formatted an evening shooting star on daily chart after posting a double on weekly chart and right now its heading downward to accomplish that pattern, but its expected that index would try to create a cheat pattern and would try to take a spike on intraday basis to move against this bearish indication on intraday basis, therefore it's recommended to stay cautious and start buying on dip with strict stop loss of 41,100 or 40,860 points. Cement sector could push some fresh air in index as its expected that cement sector companies would start moving upward after a dip as those are standing at their respective supportive region. For current trading session index have supportive regions around 41,100 and 40860 while resistant regions are standing at 41,500 and 41800 points.