PSX Daily Market Review - 9th May 2019

Trading volume at PSX floor increased by 47.87 million shares or 73.24% on DoD basis, whereas the benchmark KSE100 index opened at 35,666.78, posted a day high of 35,697.73 and a day low of 34,849.84 points during last trading session while session suspended at 35,035.03 with net change of -596.03 points and net trading volume of 86.78 million shares. Daily trading volume of KSE100 listed companies increased by 32.20 million shares or 58.99 on DoD basis.
Foreign Investors remained in net buying positions of 7.31 million shares and net value of Foreign Inflow increased by 5.15 million US Dollars. Categorically, Foreign Individuals, Foreign Corporate and Overseas Pakistanis remained in net buying positions of 0.07, 4.56 and 2.67 million shares. While on the other side Local Individuals, Banks, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 4.88, 5.06, 2.07, 3.95 and 0.62 million shares but Local Companies and NBFCs remained in net buying positions of 5.38 and 0.41 million shares respectively.

Asia shares sink to six-week low as clock ticks toward U.S. tariff hike on Chinese goods
Asian shares fell to six-week lows on Thursday as tensions rose ahead of last ditch U.S.-China trade talks which could sharply alter the direction of the global economy. Investors were on tenterhooks as they waited to see if Chinese Vice Premier Liu He can salvage a trade deal during two days of negotiations in Washington on Thursday and Friday, after U.S. officials said Beijing had backtracked on earlier commitments. An agreement could avert a sharp increase in U.S. tariffs on Chinese goods that President Donald Trump has threatened to impose on Friday, which Beijing has threatened to retaliate against in what would be major escalations in the countries’ bruising trade war.
Trump ‘happy’ to keep tariffs on Chinese goods; Beijing threatens retaliation
U.S. President Donald Trump said on Wednesday he would be happy to keep tariffs on Chinese imports, prompting Beijing to threaten retaliation, as the world’s two largest economies prepared to resume talks to end a trade war that has roiled global supply chains and financial markets. The United States and China have locked horns over trade since last year, when the Trump administration slapped levies on billions of dollars worth of Chinese goods and demanded the Asian nation adopt policy changes that would, among other things, make China’s market more accessible to U.S. companies. Beijing has responded in kind with its own tariffs on a range of U.S. goods including soybeans and pork products. While expectations have mounted that the two sides appeared to be nearing a deal, relations have soured in recent days.
Asad named chairman of NA’s finance panel
Twenty days after his removal from the office of finance minister, the government on Wednesday decided to appoint Asad Umar as chairman of the National Assembly’s Standing Committee on Finance. The decision was taken at a meeting of the parliamentary party of the ruling Pakistan Tehreek-i-Insaf (PTI) held at the Parliament House during which party leaders expressed concern over the appointment of technocrats and non-elected members on key positions. The committee is presently being headed by PTI’s MNA Faizullah from Faisalabad.
Move to withdraw Rs700bn tax exemptions, says official
With Pakistan and the International Monetary Fund (IMF) scheduled to conclude a staff-level agreement on Friday, the two sides agreed on Wednesday that the country would withdraw tax exemptions amounting to Rs700 billion within two years. During their discussions on Wednesday, the two sides worked out a financing gap of around $11 billion for the next fiscal year, 2019-20. Under the understanding, the government will start withdrawing exemptions offered in various taxes amounting to around Rs350bn in the budget for 2019-20.
Country can enhance revenue without imposing new taxes: ICCI
The Islamabad Chamber of Commerce & Industry (ICCI) has called upon the government to take strong measures for reducing tax gap in order to realize the actual tax potential of Pakistan and improve its tax revenue. In a joint statement issued here on Wednesday, President ICCI Ahmed Hassan Moughal, Senior Vice President Rafat Farid and Vice President Iftikhar Anwar Sethi said that Pakistan has substantial potential to enhance tax revenue without imposing new taxes or increase tax rates, but the only requirement was to take steps to reduce tax gap and create a conducive environment for tax compliance.

The Benchmark KSE100 Index have succeeded in penetration below its major supportive trend line during last trading session. But a positive element also have occurred that index have succeeded in a sharp pull back above 35,000 points before day end which have strengthen a hope among bulls. As of now it's recommended to stay cautious while trading during current trading session because supportive regions are far away at the momentum and falls at 34,600 and 34,300 points respectively while on the flip side index have resistant regions ahead at 36,200 and 36,500 points. It's expected that index would start the day with a positive momentum and after a volatile session it would also close on positive note. It's recommended to start buying on dip during current trading session.