PSX Daily Market Review - 9th Aug 2018

Trading volume at PSX floor dropped by 48.05 million shares or 20.06% on DoD basis during last trading session, whereas the benchmark KSE100 Index opened at 42,784.80, posted a day high of 42,857.12 and a day low of 42,648.85 during last trading session. The session suspended at 42,731.86 with net change of -28.27 and net trading volume of 92.95 million shares. Daily trading volume of KSE100 listed companies dropped by 36.24 million shares or 28.05% on DoD basis.
Foreign Investors remained in net selling position of 18.03 million shares and net value of Foreign Inflow dropped by 16.56 million US Dollars. Categorically, Foreign Individuals, Foreign Corporate and Overseas Pakistanis investors remained in net selling positions of 0.08, 14.35 and 3.61 million shares. While on the other side Local Individuals, Banks, Mutual Fund, Brokers and Insurance Companies remained in net buying positions of 9.81, 0.18, 0.55, 0.73 and 9.30 million shares but Local Companies and NBFCs Fund remained in net selling positions of 3.35 and 0.19 million shares respectively.

Trade tensions torpedo oil, U.S. sanctions hammer Russian rouble
Asian shares were subdued on Thursday after a new round of tit-for-tat tariffs in the U.S.-Sino trade conflict torpedoed oil prices, while the Russian rouble tumbled as the U.S. slapped fresh sanctions on the country. MSCI’s broadest index of Asia-Pacific shares outside Japan barely budged as caution dominated. Japan’s Nikkei slipped 0.5 percent, not helped by a shock slump in core machinery orders. Early Thursday, China’s state broadcaster said China must counteract U.S. tariffs and Beijing had the confidence to protect its own interests as well as the means to do so. China had already announced additional tariffs of 25 percent on $16 billion worth of U.S. imports from fuel to autos. The tariffs will apply to billions of dollars in U.S. gasoline, diesel and other oil products, though not crude.
ICCI for reforms in taxation
Islamabad Chamber of Commerce and Industry (ICCI) here on Wednesday called upon the upcoming government to introduce reforms in taxation system, focusing on direct taxes and rationalization of existing taxes for the revival of national economy. While, talking to a delegation of Traders Welfare Association, Gulberg, Islamabad, President ICCI Shaikh Amir Waheed said that real estate sector has the potential to uplift the economy, but 23-25 percent cumulative taxes on it were impeding its growth. The delegation of Gulberg Islamabad along with its president Muhammad Najeeb Malik visited ICCI and discussed the issues being faced by the real estate sector in the country, said a press release. Amir Waheed urged the government to revise high taxes on this important sector to facilitate its better growth.
Minister for promoting latest agri practices
Caretaker Punjab Agriculture Minister Sardar Tanveer Ilyas Wednesday urged the agricultural scientists to enhance their role for the promotion of latest agricultural practices and to increase per acre production. He was addressing UAF deans and directors meeting and inaugural ceremony of multi-authored books developed by Endowment Fund Secretariat at the University of Agriculture Faisalabad. Speaking on the occasion, he said that tangible researches based on problems of farming community and agricultural sector were the need of the hour. He stressed the need to take measures in order to ensure quality education and research work that will ultimately improve the position in the international ranking.
Pak-Thai FTA talks in Sept
Pakistan and Thailand would finalize Free Trade Agreement (FTA) product list in coming round of negotiation in mid of September for increasing trade liberalization between the two countries.A FTA between Pakistan and Thailand will be signed in last week of December 2018 to reach the final agreement, a top official of Ministry of Commerce told APP here Wednesday. He said Pakistan would get benefits of $200m after signing the FTA with Thailand. The 10th round on FTA negotiation will start between Pakistan and Thailand by mid of September, he said.
SECP passes capital market, insurance, REIT rules
The Securities and Exchange Commission of Pakistan (SECP) has passed regulations concerning capital market, insurance and corporate governance in its meeting. In this regard, the commission approved the proposed amendments to the Motor Vehicles Act, 1939, for public consultation and to be disseminated by posting them on the SECP's website as well as consultations with the stakeholders, including IAP, non-life insurers and insurance brokers to solicit their feedback. The commission also approved publication of the draft General Takaful Accounting Regulations, 2018, to elicit public opinion. These draft regulations have been formulated in exercise of the powers conferred under Rule 29 of the Takaful Rules, 2012, read with sub-section (1) and (2) of section 46 read with section 167(3) of the Insurance Ordinance, 2000.

The Benchmark KSE100 Index is being capped by a horizontal resistant region which falls on 50% correction of last bearish rally and a daily triple top. Momentum indicators are in mixed situation because daily Stochastic is trying to generate a bullish crossover to push index upward but MAORSI is trying to generate a bearish crossover to add pressure on index, therefore it’s expected that index would remain volatile between 42,300 and 42,900 points. For a spike on intraday basis index needs to open with a positive gap above 42,880 points during current trading session and if it would not succeed in doing so then gradually it would be pushed downward. As of now its recommended to wait for breakout of either 43,330 points for new buying or 42,089 for initiating new short positions. It’s recommended to stay side line during current trading session.