Previous Session Recap
Trading volume at PSX floor increased by 14.79 million shares or 6.34% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 46,783.54, posted a day high of 47,144.12 and a day low of 46,542.82 during last trading session. The session suspended at 46,637.62 with net change of 76.8 and net trading volume of 136.41 million shares. Daily trading volume of KSE100 listed companies increased by 22.83 million shares or 20.10% on DoD basis.
Foreign Investors remained in net selling position of 3.95 million shares but net value of Foreign Inflow increased by 2.24 million US Dollars. Categorically, Foreign Individual, Corporate and Overseas Pakistanis remained in net selling positions of 0.03, 1.88 and 2.05 million shares respectively. While on the other side Local Individuals, Mutual Funds and Brokers remained in net buying positions of 1.04, 23.74 and 3.08 million shares respectively but Local Companies, Banks, NBFCs and Insurance Companies remained in net selling positions of 5.11, 4.46, 0.1 and 11.2 million shares respectively.
Analytical Review
Asia stocks encouraged by bounce in S&P futures; confused on Syria
Asian shares edged higher on Monday as a bounce in U.S. stock futures soothed sentiment even as U.S. President Donald Trump kept up his twitter war with China over trade just a couple of days before President Xi Jinping gives a keynote speech. There was also little immediate reaction to reports U.S. forces had struck at sites in Syria, presumably in retaliation for an alleged chemical attack on civilians there. For now, investors in Asia were encouraged that E-Mini futures for the S&P 500 were still up 0.4 percent, while NASDAQ futures rose 0.6 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.1 percent. Japan’s Nikkei wavered either side of flat, and South Korea edged ahead by 0.2 percent. Caution remained the watchword after Trump claimed on Sunday that China would take down its trade barriers because it was “the right thing to do.”
PHC bars govt from awarding power project to Korean firm
The Peshawar High Court has restrained Khyber-Pakhtunkhwa government from handing over 215 MW Asrit Kedam Hydropower Project to Korean South East Power Company in violation of rules and asked the government and Pakhtunkhwa Energy Development Organization to comment within fortnight. A local company Yunus Brothers, who had received Letter of Intent (LOI) and conducted the feasibility study of the 215 MW Asrit Kedam Hydropower Project, has approached the court and challenged the decision of the KP government of handing over the project to Korean South East Power Company project in violation of the rule.
Industry wants tax cut to make low-cost cars
Pakistan Automotive Manufacturers' Association in its budget proposals has proposed some tax measures to reduce the cost of locally produced vehicles and make these more affordable to consumers. PAMA has said that 1% additional duty through amendment in SRO 1178(I) 2015 is negatively impacting the highly cost sensitive sector. "By exempting the imports made under SRO 655(I)/2006 and SRO 656(I)/2006 from additional custom duty under SRO 1178(I)/2015, the government can help reduce the cost of vehicle being produced locally," suggested PAMA. Moreover, 5% to 30% regulatory duty on steel being imported under HS codes 72.08, 7209, 7210, 7213, 72.14, 7305 and 73.18 has been imposed. These steel items are basic raw materials of the auto industry that are not being manufactured locally and continued imposition of RD at such a high rate is rather unbearable as per vehicle Cost impact is around 3,000 ~ 5,000 rupees.
FBR to get tax evaders data in a month: Miftah
Adviser to Prime Minister on Finance, Revenue, and Economic Affairs, Miftah Ismail has said the data of tax evaders would be provided to Federal Board of Revenue (FBR), within thirty days. The tax evaders would be identified and the data would be provided to FBR to broaden the tax network in the country, he said while talking to a private news channel. The government had announced the amnesty scheme and reduced the tax rate to facilitate the people, he said. "We will identify the people through National Database Registration Authority (Nadra), and the list would be provided to the department concerned before holding the next elections," he said.
Iran to increase electricity export to Pakistan, Afghanistan
Iran is considering plans to increase electricity exports to Afghanistan and Pakistan by linking its power grid to the neighbouring countries, according to the latest media reports, as the country increasingly looks to become a regional hub of power generation and supply. "Given the fact that neighbouring countries, especially Afghanistan and Pakistan, need electricity, necessary measures should be adopted to link Iran's power grid to theirs," China Global Television Network (CGTN) reported Sunday quoting Davoud Manzour, deputy executive director of Iran Power Generation, Distribution and Transmission Company (Tavanir). Iran exports nearly 190 megawatts-hour of electricity to Afghanistan. Since the beginning of the current Iranian year, more than 48,000 megawatts of electricity had been exported to Afghanistan through Dogharoun distribution post, Ehsan Siyahzadeh, director for Taibud Electric Office, claimed in a report by Iran's IRNA news agency.
Market is expected to remain volatile therefore it'ss recommended to stay cautious while trading today.
Asian shares edged higher on Monday as a bounce in U.S. stock futures soothed sentiment even as U.S. President Donald Trump kept up his twitter war with China over trade just a couple of days before President Xi Jinping gives a keynote speech. There was also little immediate reaction to reports U.S. forces had struck at sites in Syria, presumably in retaliation for an alleged chemical attack on civilians there. For now, investors in Asia were encouraged that E-Mini futures for the S&P 500 were still up 0.4 percent, while NASDAQ futures rose 0.6 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.1 percent. Japan’s Nikkei wavered either side of flat, and South Korea edged ahead by 0.2 percent. Caution remained the watchword after Trump claimed on Sunday that China would take down its trade barriers because it was “the right thing to do.”
The Peshawar High Court has restrained Khyber-Pakhtunkhwa government from handing over 215 MW Asrit Kedam Hydropower Project to Korean South East Power Company in violation of rules and asked the government and Pakhtunkhwa Energy Development Organization to comment within fortnight. A local company Yunus Brothers, who had received Letter of Intent (LOI) and conducted the feasibility study of the 215 MW Asrit Kedam Hydropower Project, has approached the court and challenged the decision of the KP government of handing over the project to Korean South East Power Company project in violation of the rule.
Pakistan Automotive Manufacturers' Association in its budget proposals has proposed some tax measures to reduce the cost of locally produced vehicles and make these more affordable to consumers. PAMA has said that 1% additional duty through amendment in SRO 1178(I) 2015 is negatively impacting the highly cost sensitive sector. "By exempting the imports made under SRO 655(I)/2006 and SRO 656(I)/2006 from additional custom duty under SRO 1178(I)/2015, the government can help reduce the cost of vehicle being produced locally," suggested PAMA. Moreover, 5% to 30% regulatory duty on steel being imported under HS codes 72.08, 7209, 7210, 7213, 72.14, 7305 and 73.18 has been imposed. These steel items are basic raw materials of the auto industry that are not being manufactured locally and continued imposition of RD at such a high rate is rather unbearable as per vehicle Cost impact is around 3,000 ~ 5,000 rupees.
Adviser to Prime Minister on Finance, Revenue, and Economic Affairs, Miftah Ismail has said the data of tax evaders would be provided to Federal Board of Revenue (FBR), within thirty days. The tax evaders would be identified and the data would be provided to FBR to broaden the tax network in the country, he said while talking to a private news channel. The government had announced the amnesty scheme and reduced the tax rate to facilitate the people, he said. "We will identify the people through National Database Registration Authority (Nadra), and the list would be provided to the department concerned before holding the next elections," he said.
Iran is considering plans to increase electricity exports to Afghanistan and Pakistan by linking its power grid to the neighbouring countries, according to the latest media reports, as the country increasingly looks to become a regional hub of power generation and supply. "Given the fact that neighbouring countries, especially Afghanistan and Pakistan, need electricity, necessary measures should be adopted to link Iran's power grid to theirs," China Global Television Network (CGTN) reported Sunday quoting Davoud Manzour, deputy executive director of Iran Power Generation, Distribution and Transmission Company (Tavanir). Iran exports nearly 190 megawatts-hour of electricity to Afghanistan. Since the beginning of the current Iranian year, more than 48,000 megawatts of electricity had been exported to Afghanistan through Dogharoun distribution post, Ehsan Siyahzadeh, director for Taibud Electric Office, claimed in a report by Iran's IRNA news agency.
Technical Analysis
The Benchmark KSE100 Index opened with a positive gap and posted six months high during last trading session but this positive momentum could not sustained till day end and index have generated a bearish hammer on daily chart. Daily Stochastic have generated a bearish crossover which would lead index towards negative zone in coming days if it would be supported by MAORSI in bearish direction. As of now index have resistances ahead at 46,900 and 47,140 points while supportive regions are standing at 46,140 and 46,590 points. A double top is also formatted on weekly chart which would also generate a negative impact on index therefore its recommended to stay cautious while trading during current trading session.
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