PSX Daily Market Review - 2nd Oct 2019
Previous Session Recap
Trading volume at PSX floor increased by 14.68 million shares or 8.84% on DoD basis, whereas the benchmark KSE100 index opened at 32,084.66, posted a day high of 32,290.39 and a day low of 32,002.11 points during last trading session while session suspended at 32,254.32 points with net change of 175.47 points and net trading volume of 132.15 million shares. Daily trading volume of KSE100 listed companies dropped by 10.66 million shares or 7.47% on DoD basis.
Foreign Investors remained in net selling positions of 3.63 million shares but net value of Foreign Inflow dropped by 0.48 million US Dollars. Categorically, Foreign Individual & Corporate remained in net selling positions of 0.24 and 3.57 million shares but Overseas Pakistanis investors remained in net buying positions of 0.18 million shares. While on the other side Local Individuals, Banks and Insurance Companies remained in net selling positions of 2.66, 6.82 and 1.86 million shares respectively but Local Companies, NBFCs, Mutual Fund and Brokers remained in net buying positions of 2.88, 0.06, 7.45 and 4.44 million shares respectively.
Analytical Review
Global shares steady, investors pin hopes on U.S.-China talks
Global share prices ticked up on Tuesday as some investors clung to hopes that China and the United States could work towards reaching a deal on trade and other issues in the fourth quarter.Japan's Nikkei .N225 rose 0.6% while MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.11%. Chinese markets will be shut for a week from Tuesday to mark 70 years since the founding of the People’s Republic of China. U.S. stock futures ESc1 rose 0.16% in Asia, a day after the S&P 500 .SPX gained 0.50%. Technology sectors led the gains on Monday while U.S.-listed shares of Chinese firms bounced up a tad, after big balls on Friday, with Alibaba (BABA.N) up 0.75% and Baidu (BIDU.O) gaining 1.53%. During the July-September quarter, the S&P500 gained 1.21%.
Gwadar Port opens for transit trade
Gwadar Port has been opened for transit trade and the first ship in this regard is set to arrive next week, a sub-committee of the Senate Standing Committee on Maritime Affairs was informed on Tuesday. Officials of the Ministry of Maritime Affairs briefed the sub-committee regarding transit trade and transshipment. The body was informed that the Afghan Trade Transit (ATT) Module required some changes that have been applied and after initial testing it is ready for application. The senate body was informed that the first ATT shipment would arrive on Oct 8, next week at Gwadar port, which will gradually increase. Convener of the sub-committee Senator Kauda Babar, who hails from Gwadar, pointed out towards the lacunas in planning and development of the area.
Cabinet approves first-ever e-commerce policy framework
With a delay of more than three years, the Federal Cabinet on Tuesday approved the much-awaited first-ever e-commerce policy framework. While approving the framework at the cabinet meeting, Prime Minister Imran Khan remarked that e-commerce will add synergy to Pakistan’s Kamyab Jawan Programme and One-Woman, One-Bank Account initiative, while proving to be a driver of youth empowerment and employment generation through digital connectivity. The current size of the local e-commerce industry seems to have no ballpark number. The only barometer to quantify is from sales proceeds. As per statistics, e-commerce sales in 2017 were Rs20.7bn, which grew by 93.7pc to Rs40.1bn in 2018. Compared to this, the e-commerce sales in India is $33bn, while in China it stood at $1,526bn. The e-commerce sales are very high in developed countries.
Suzuki raises Alto, bike prices
The Pak Suzuki Motor Company Limited (PSMCL) on Tuesday announced second price jump in two variants of Alto660cc by Rs70,000-85,000 from Oct 1 followed by price hike of Rs2,000-6,000 in two-wheelers. Two-time price increase in Alto suggests the PSMCL is now fully cashing in on its burgeoning demand after losing sales on hot selling WagonR and other models. Suzuki began Alto production in June announcing VXR and Alto AGS models at a price of Rs1.101 million and Rs1.295m respectively. The company on Aug 1 came out with a price hike of Rs137,000 and Rs138,000. VXR and AGS models now sell at Rs1.308m and Rs1.518m. The company, in a circular to its authorised dealers, did not attribute any reason for the price hike. However, it said the price hike would not be for the old pending orders, which have been booked with partial advance payment, and/or for those orders in which customers failed to deposit their balance payments within the due requested time.
FBR chief for only 12.5pc GST on basic food commodities
Federal Board of Revenue (FBR) chairman Shabbar Zaidi on Tuesday said that there should be only 12.5 percent general sales tax (GST) on basic food commodities instead of standard 17 percent. He said that former finance minister Ishaq Dar had increased the GST to 17 percent on food commodities as it was 12.5 percent before the PML-N government. He was of the view that GST should be only 12.5 percent on food commodities. He made these remarks in a meeting of sub-committee of the National Assembly standing committee on finance and revenue. The Committee meeting was held under the convenership of MNA Dr Aisha Ghous Pasha. MNA Ms Hina Rabbani Khar and MNA Dr Ramesh Kumar Vankwani also attended the meeting as committee members.
Global share prices ticked up on Tuesday as some investors clung to hopes that China and the United States could work towards reaching a deal on trade and other issues in the fourth quarter.Japan's Nikkei .N225 rose 0.6% while MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.11%. Chinese markets will be shut for a week from Tuesday to mark 70 years since the founding of the People’s Republic of China. U.S. stock futures ESc1 rose 0.16% in Asia, a day after the S&P 500 .SPX gained 0.50%. Technology sectors led the gains on Monday while U.S.-listed shares of Chinese firms bounced up a tad, after big balls on Friday, with Alibaba (BABA.N) up 0.75% and Baidu (BIDU.O) gaining 1.53%. During the July-September quarter, the S&P500 gained 1.21%.
Gwadar Port has been opened for transit trade and the first ship in this regard is set to arrive next week, a sub-committee of the Senate Standing Committee on Maritime Affairs was informed on Tuesday. Officials of the Ministry of Maritime Affairs briefed the sub-committee regarding transit trade and transshipment. The body was informed that the Afghan Trade Transit (ATT) Module required some changes that have been applied and after initial testing it is ready for application. The senate body was informed that the first ATT shipment would arrive on Oct 8, next week at Gwadar port, which will gradually increase. Convener of the sub-committee Senator Kauda Babar, who hails from Gwadar, pointed out towards the lacunas in planning and development of the area.
With a delay of more than three years, the Federal Cabinet on Tuesday approved the much-awaited first-ever e-commerce policy framework. While approving the framework at the cabinet meeting, Prime Minister Imran Khan remarked that e-commerce will add synergy to Pakistan’s Kamyab Jawan Programme and One-Woman, One-Bank Account initiative, while proving to be a driver of youth empowerment and employment generation through digital connectivity. The current size of the local e-commerce industry seems to have no ballpark number. The only barometer to quantify is from sales proceeds. As per statistics, e-commerce sales in 2017 were Rs20.7bn, which grew by 93.7pc to Rs40.1bn in 2018. Compared to this, the e-commerce sales in India is $33bn, while in China it stood at $1,526bn. The e-commerce sales are very high in developed countries.
The Pak Suzuki Motor Company Limited (PSMCL) on Tuesday announced second price jump in two variants of Alto660cc by Rs70,000-85,000 from Oct 1 followed by price hike of Rs2,000-6,000 in two-wheelers. Two-time price increase in Alto suggests the PSMCL is now fully cashing in on its burgeoning demand after losing sales on hot selling WagonR and other models. Suzuki began Alto production in June announcing VXR and Alto AGS models at a price of Rs1.101 million and Rs1.295m respectively. The company on Aug 1 came out with a price hike of Rs137,000 and Rs138,000. VXR and AGS models now sell at Rs1.308m and Rs1.518m. The company, in a circular to its authorised dealers, did not attribute any reason for the price hike. However, it said the price hike would not be for the old pending orders, which have been booked with partial advance payment, and/or for those orders in which customers failed to deposit their balance payments within the due requested time.
Federal Board of Revenue (FBR) chairman Shabbar Zaidi on Tuesday said that there should be only 12.5 percent general sales tax (GST) on basic food commodities instead of standard 17 percent. He said that former finance minister Ishaq Dar had increased the GST to 17 percent on food commodities as it was 12.5 percent before the PML-N government. He was of the view that GST should be only 12.5 percent on food commodities. He made these remarks in a meeting of sub-committee of the National Assembly standing committee on finance and revenue. The Committee meeting was held under the convenership of MNA Dr Aisha Ghous Pasha. MNA Ms Hina Rabbani Khar and MNA Dr Ramesh Kumar Vankwani also attended the meeting as committee members.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 is caged in an ascending wedge on daily chart and right now it’s trying to bounce back after resistance from resistant trend line of this wedge and right now it’s expected that index would try to create an evening shooting star in response to previous morning star if it would not succeed in penetration of this wedge in upward direction and a cheat pattern would take place which would try to push index in downward direction. It’s expected that index would try to find some ground at 31,500 points which fall on crossover of a trend line with a horizontal supportive region. It’s recommended to adopt swing trading between 31,500 to 32,360 points until unless index succeeds in penetration of either side with strict stop loss on both sides. But it’s recommended to stay on selling side because if index would succeed in penetration below 31,500 points in coming days then it would try to target 30,700 points.
To Open picture in original resolution right click image and then click open image in a new tab
Disclaimer
Information and opinions contained herein have been compiled or arrived at by Us from publicly available information and sources that We believe to be reliable. Whilst every care has been taken in preparing this research report, no research analyst, director, officer, employee, agent or adviser of any member of Our Team gives or makes any representation, warranty or undertaking, whether express or implied, and accepts no responsibility or liability as to the reliability, accuracy or completeness of the information set out in this research report. This research report is for information purposes only and does not constitute nor is it intended as an offer or solicitation for the purchase or sale of securities or other financial instruments. Neither the information contained in this research report nor any future information made available with the subject matter contained herein will form the basis of any contract.
High Risk Investment
Trading foreign exchange, Commodities and Equities (Stocks) on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, Commodities and Equities (Stocks) you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss in excess of your initial investment. You should be aware of all the risks associated with foreign exchange, Commodities and Equities (Stocks) trading and seek advice from an independent financial advisor if you have any doubts.
Market Opinions
Any opinions, news, research, analyses, prices or other information contained on in this report is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Accuracy of Information
The content of this report is provided for the sole purpose of assisting traders to make independent investment decisions. We have taken reasonable measures to ensure the accuracy of the information on the website; however, it does not guarantee accuracy and will not accept liability for any loss or damage which may arise directly or indirectly from the content or from your inability to assess the report, or for any delay in or failure of the transmission or the receipt of any instruction or notifications sent through this report.