PSX Daily Market Review - 8th March 2019

Trading volume at PSX floor increased by 1.73 million shares or 2.13% on DoD basis, whereas the benchmark KSE100 index opened at 39,662.44, posted a day high of 39,747.18 and a day low of 39,257.99 points during last trading session while session suspended at 39,294.10 with net change of -274.00 points and net trading volume of 46.36 million shares. Daily trading volume of KSE100 listed companies dropped by 15.25 million shares or 24.76% on DoD basis.
Foreign Investors remained in net buying positions of 1.90 million shares and net value of Foreign Inflow dropped by 0.92 million US Dollars. Categorically, Foreign Individuals, Corporate and Overseas Pakistani Investors remained in net buying positions of 0.03, 0.62 and 1.25 million shares respectively. While on the other side Local Individuals and Companies remained in net buying positions of 2.82 and 1.43 million shares but Banks, NBFCs, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 0.03, 0.1, 0.48, 2.50 and 3.14 million shares respectively.

Asia stocks dealt fresh blow as China exports sink
Asian stocks shuddered lower on Friday after shockingly weak export data from China heightened market fears about a global economic slowdown, a day after European policymakers slashed growth forecasts for the bloc. Beijing reported exports in February tumbled 20.7 percent from a year earlier, far beneath forecasts of a 4.8 percent drop and more than erasing January’s surprise jump. Analysts cautioned the timing of the Lunar New Year made it difficult to draw a true signal from the noise but the scale of the miss was alarming. Adding insult to injury, China’s leading brokerage Citic Securities issued a rare “sell” rating on the Shanghai-listed shares of People’s Insurance Group of China (PICC) sending them down almost 10 percent.
Zulfi for collaborative efforts to materialize human development goals
Special Assistant to Prime Minister on Overseas Pakistanis, Syed Zulfikar Abbas Bukhari on Thursday emphasized the need for collaborative efforts to achieve human development goals for socio-economic well-being of the country. “Development is a complex process, a symphony where every single aspect has to be synchronized and aligned to get optimal results. Thus, Pakistan likes to learn from global best practices to expedite processes of development targets, set by the Prime Minister Imran Khan,” he expressed these views during an interaction with world donor agencies and foreign dignitaries here.
24 projects to be funded with Chinese grant under CPEC
Chinese experts have shortlisted around two dozen projects to be funded with the Chinese grant in the provinces and regions under CPEC, it was learnt reliably here. After meeting with the officials from all the provinces and regions, the Chinese experts have decided to shortlist around two dozen projects, for socio economic development, in six designated areas of education, agriculture, poverty alleviation, skill development, healthcare, water supply and vocational training projects, official source told The Nation here Thursday.
Will create new tax authority if FBR cannot be fixed, PM Khan warns
Prime Minister Imran Khan on Thursday said that reforming Federal Bureau of Revenue (FBR) is high on his agenda, but warned that if the tax collection authority cannot be fixed, he will create a new one. "Reforming FBR is essential. Until that is done, we [the state] will not be able to meet our expenses," the prime minister said in an address to the 11th All-Pakistan Chambers President Conference in Islamabad. "This is why we will try our best [to fix] FBR and I assure you [the business community] that I've been constantly having discussions and meetings with Abdul Razzaq Dawood and Asad Umar on how to generate revenue and make FBR a business-friendly institute.
Private sector borrowing jumps 92pc
Private sector borrowing has jumped over 92 per cent to Rs600.5 billion during July-Feb22 compared to Rs312bn in the same period last year, according to latest data released by the State Bank of Pakistan (SBP) on Thursday. The jump in borrowing comes at a time when SBP has raised interest rates to 10.25pc from 5.75pc in January 2018. Conventional banks’ lending doubled from Rs204.4bn to Rs409.8bn during the eight months whereas lending at Islamic banks also jumped to Rs90bn compared to Rs23.8bn last year. Islamic banking arms of the commercial banks also increased their lending to the private sector reaching to Rs100bn compared to Rs84bn last year.

The Benchmark KSE100 Index have started moving downward after completing its 61.8% correction on daily chart and now it’s expected that it would try to find support above 39,053 points because hourly momentum indicators have reached their bottom and they are ready for a bullish pull back which may lead index towards its previous high again at 39,800 points. For current trading session it’s recommended to stay cautious and start buying on dip with strict stop loss of 38,800 points and target at 39,500 points because 38,800 points region would try to resist against any bearish pressure. Current trading session could play a vital role in setting short term market sentiment because closing above 39,500 would call for a short term bullish trend while if index would succeed in closing 38,800 points then a serious pressure could be witnessed in coming days.