PSX Daily Market Review - 9th Aug 2019

Trading volume at PSX floor increased by 43.80 million shares or 67.08% on DoD basis, whereas the benchmark KSE100 index opened at 30,220.84, posted a day high of 30,277.45 and a day low of 29,400.28 points during last trading session while session suspended at 29,737.98 points with net change of -539.47 points and net trading volume of 90.52 million shares. Daily trading volume of KSE100 listed companies increased by 36.97 million shares or 69.04% on DoD basis.
Foreign Investors remained in net long positions of 1.08 million shares and net value of Foreign Inflow increased by 0.55 million US Dollars. Categorically, Foreign Individuals, Corporate and Overseas Pakistan investors remained in net buying long positions of 0.03, 0.87 and 0.18 million shares. While on the other side Local Individuals, Banks, NBFCs and Brokers remained in net long positions of 12.78, 0.30, 0.18 and 1.11 million shares but Local Companies, Mutual Funds and Insurance Companies remained in net selling positions of 1.84, 12.83 and 1.30 million shares respectively.

Asia stocks inch up but gains capped by fresh Sino-U.S. trade worries
Asian shares caught the tail of a Wall Street rally on Friday, helped by China’s better-than-expected export figures but fresh concerns about Sino-U.S. trade ties are likely to limit gains in the region. Weighing on risk appetite was a report from Bloomberg that Washington is delaying a decision about licenses for U.S. firms to restart trade with Huawei Technologies. That sent U.S. stock futures down as much as 0.6% in early Asian trade. They were last quoted 0.4% lower on the day. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2% but was on track to lose 2.3% for the week. Japan’s Nikkei average advanced 0.6%, while Australian stocks stood flat and South Korean stocks gained 1.0%. On Wall Street, the S&P 500 registered its largest one-day percentage gain in about two months on Thursday, with the Dow and the Nasdaq also climbing more than 1%.
57,450 Pakistanis have $7-8 billion in foreign bank accounts: FBR
Chairman Federal Board of Revenue (FBR) Shabbar Zaidi on Thursday disclosed that government had received the evidence of Pakistanis who had $7-$8 billion in bank accounts of other countries. He said that Pakistan had signed an agreement with Organization for Economic Cooperation and Development (OECD) in 2016. The agreement had helped FBR to exchange data with 28 countries. The FBR had so far received data of offshore accounts of 57,450 Pakistanis. Among them, around 378 people had more than $5 billion in their accounts. However, overall, the government had received the evidence of Pakistanis who had $7-$8 billion in bank accounts of other countries.
‘IMF package to bring economic stability’
Resident representative of the International Monetary Fund (IMF), Pakistan Office, Ms Maria Teresa Daban Sanchez has made it clear that the harsh budgetary measures taken by the government of Pakistan in the recent budget are not part of the IMF fresh financial bailout package. While speaking in a meeting here at Sarhad Chamber of Commerce and Industry (SCCI), Ms Teresa Sanchez said that IMF is extending $6billion, the EFF program on the request of the government of Pakistan. However, she said the government’s reforms initiatives are imperative for sustainable economic growth and development of the country. The IMF resident representative, Ms Teresa Sanchez accompanied by a delegation include senior economist Zafar Hayat and M. Ali visited the chamber and held a meeting with the SCCI president, businessmen and other office bearers of the chamber, said a statement issued here on Thursday.
Govt committed to encourage investments: PM
Prime Minister Imran Khan said on Thursday that the government is committed to provide all possible facilities to investors and the business community in the country. Talking to Global Vice Chairman of American Company Procter and Gamble Jon Moellor here on Thursday, the prime minister said that special incentives are being provided on the export-oriented products being manufactured in the country. The prime minister said that a large consumer market comprising 220 million population, geographical location of Pakistan, cheap labour, and the pro-business laws and rules introduced by the government provide the most suitable environment for business and investment, which should be benefitted by investors.
Abraaj founder sentenced to 3 years in prison by UAE court: report
The chief executive and founder of the collapsed Dubai-based private equity firm Abraaj Capital Ltd, Arif Naqvi, was sentenced in absentia to three years in prison by a court in the United Arab Emirates, reported Bloomberg on Thursday. Naqvi was handed the prison sentence in a case involving low-cost carrier Air Arabia PJSC, the publication quoted people familiar with the matter as saying. The sentence comes days after the financial regulator of Dubai said it had imposed a record fine of nearly $315 million on two affiliates of the collapsed Abraaj group for unauthorised activities and misusing investors’ funds. According to the Bloomberg report, Naqvi’s legal representative declined to comment on the development, while Air Arabia representatives weren’t available to comment.

The Benchmark KSE100 index have moved below its major supportive region of 30,000 points during last trading session and have tried to penetrate a descending trend line which falls at 29,500 point in downward direction but before day end index succeed in recovering above said trend line. As of now index have supportive region at 29,200 and 28,700 points while on flipside it would face resistances at 30,200 and 30,800 points. As of now It's expected that index would try to start recover after a dip during current trading session therefore it's recommended to practice caution and index would remain under pressure until it would succeed in closing above 31,700 points.