PSX Daily Market Review - 4th Oct 2019
Previous Session Recap
Trading volume at PSX floor increased by 142.90 million shares or 78.80% on DoD basis, whereas the benchmark KSE100 index opened at 32,426.22, posted a day high of 32,833.54 and a day low of 32,279.86 points during last trading session while session suspended at 32,752.25 points with net change of 388.9 points and net trading volume of 210.22 million shares. Daily trading volume of KSE100 listed companies increased by 86.65 million shares or 70.11% on DoD basis.
Foreign Investors remained in net selling positions of 12.47 million shares and net value of Foreign Inflow dropped by 609 million US Dollars. Categorically, Foreign Individual, Corporate & Overseas Pakistanis investors remained in net selling positions of 0.75, 8.83 and 2.89 million shares. While on the other side Local Individuals, NBFCs and Insurance Companies remained in net selling positions of 7.17, 0.035 and 3.26 million shares respectively but Local Companies, Banks, Mutual Fund and Brokers remained in net buying positions of 5.74, 0.24, 4.65 and 8.30 million shares respectively.
Analytical Review
Asia stocks up slightly in cautious trade as focus shifts to U.S. payrolls
Asian stocks edged higher on Friday, thanks to gains on Wall Street, but the mood was cautious before a key U.S. job report that could help determine whether the Federal Reserve cuts interest rates further. Investors have been caught out by a set of weak U.S. data this week, including surveys on services and manufacturing sectors, deepening fears the Sino-U.S. trade war is starting to hurt growth in the world’s biggest economy. “We’ll probably see a bounce in Asian shares, but then nervousness will creep into the markets as the day progresses,” said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.3%. Japan's Nikkei stock index .N225 lost 0.17%, but Australian shares edged 0.05% higher. U.S. stock futures ESc1 fell 0.15% in Asia on Friday, though that followed a 0.80% increase in the S&P 500 on Wall Street overnight on hopes that future Fed rate cuts will support corporate profits.
Meeting with COAS was cordial: industry leaders
A number of business leaders who met Chief of Army Staff (COAS) Gen Qamar Bajwa in Rawalpindi on Wedenesday told Dawn that the meeting “was held in a comfortable and cordial atmosphere” and its main purpose was to focus on areas where an economic revival could be brought about, as well as building confidence between the government and the business community. It all began with a dinner which started at 8pm, and the meeting continued till 1:30am. The meal was described as “bland” and “nothing special, basically mess food” by a couple of participants, during which the assembled delegates sat on a number of tables spread across the room. After food they moved to the auditorium, where the COAS sat flanked by the government’s economic team, Financial Adviser Abdul Hafeez Shaikh, Federal Board of Revenue Chairman Shabbar Zaidi and Minister Economic Affairs Division Hammad Azhar. The COAS spoke briefly in the beginning. “He was good humoured, was very well-informed,” one participant tells Dawn. “He had a very strong message that they are on the same page with the government, and asked the attendees to look ahead, not backward, and help sort out the economy.”
Strategy finalised to remove businessmen’s concerns: PM
In separate meetings with business barons on Thursday, Prime Minister Imran Khan assured them that a strategy had been finalised to address the concerns of the business community regarding the National Accountability Bureau (NAB). Prime Minister Khan chaired two meetings: one with the representatives of different chambers of commerce and industry, and the other with leading businessmen of the country. During one meeting, the prime minister told the businessmen that the government had decided to form a committee comprising senior persons of the industry. The committee will have the mandate to decide which cases regarding businessmen should be taken up by NAB and which should not. A source at the Prime Minister Office said that NAB would be bound to first refer complaints against businessmen and industrialists/investors to the committee, which would decide which case should be investigated by the NAB and which should not. The prime minister was quoted as saying: “A strategy has been prepared to remove the business community’s reservations about NAB.”
AOB issues warning to firm over manuplating list of audit engagements
To protect public interest in audit quality, the Audit Oversight Board (AOB) has issued a warning to an audit firm for failing to disclose complete list of audit engagements during its audit quality rating. Audit Oversight Board (AOB) has taken this action against Amin, Mudassir & Co after providing an opportunity to the firm to explain its position in writing as well as an opportunity of being heard. Audit Oversight Board (AOB) has also directed the firm to submit an action plan made up of substantive measures to ensure that the same mistake is not repeated. Audit Oversight Board (AOB) conducted an independent inspection of the work carried out to assign a satisfactory audit quality rating to the firm. Upon scrutiny of the list of audit engagements submitted by the firm, it was found out by Audit Oversight Board (AOB) that the firm failed to disclose five audit engagements.
Farmers for declaring agri and climate emergency
The Farmers Bureau of Pakistan (FBP), a representative body of progressive growers, has urged the government to declare agriculture and climate emergency to take the sector out of prevailing crisis. “Cotton, rice and corn crops have almost ruined because of erratic weather, heat wave, lose control on seed trade and lack of promotion of new technologies in the agricultural sector. We will see 40 per cent loss in rice and maize crops while cotton is also facing the same fate,” said founding members of FBP while talking to members of Agriculture Journalists Association (AJA) at Lahore Chamber of Commerce and Industry on Thursday. FBP founding members Dr Zafar Hayyat, Mian Shaukat, Aamir Hayat Bhandara and Imran Shah Khagga urged the government to intervene for saving the growers.
Asian stocks edged higher on Friday, thanks to gains on Wall Street, but the mood was cautious before a key U.S. job report that could help determine whether the Federal Reserve cuts interest rates further. Investors have been caught out by a set of weak U.S. data this week, including surveys on services and manufacturing sectors, deepening fears the Sino-U.S. trade war is starting to hurt growth in the world’s biggest economy. “We’ll probably see a bounce in Asian shares, but then nervousness will creep into the markets as the day progresses,” said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.3%. Japan's Nikkei stock index .N225 lost 0.17%, but Australian shares edged 0.05% higher. U.S. stock futures ESc1 fell 0.15% in Asia on Friday, though that followed a 0.80% increase in the S&P 500 on Wall Street overnight on hopes that future Fed rate cuts will support corporate profits.
A number of business leaders who met Chief of Army Staff (COAS) Gen Qamar Bajwa in Rawalpindi on Wedenesday told Dawn that the meeting “was held in a comfortable and cordial atmosphere” and its main purpose was to focus on areas where an economic revival could be brought about, as well as building confidence between the government and the business community. It all began with a dinner which started at 8pm, and the meeting continued till 1:30am. The meal was described as “bland” and “nothing special, basically mess food” by a couple of participants, during which the assembled delegates sat on a number of tables spread across the room. After food they moved to the auditorium, where the COAS sat flanked by the government’s economic team, Financial Adviser Abdul Hafeez Shaikh, Federal Board of Revenue Chairman Shabbar Zaidi and Minister Economic Affairs Division Hammad Azhar. The COAS spoke briefly in the beginning. “He was good humoured, was very well-informed,” one participant tells Dawn. “He had a very strong message that they are on the same page with the government, and asked the attendees to look ahead, not backward, and help sort out the economy.”
In separate meetings with business barons on Thursday, Prime Minister Imran Khan assured them that a strategy had been finalised to address the concerns of the business community regarding the National Accountability Bureau (NAB). Prime Minister Khan chaired two meetings: one with the representatives of different chambers of commerce and industry, and the other with leading businessmen of the country. During one meeting, the prime minister told the businessmen that the government had decided to form a committee comprising senior persons of the industry. The committee will have the mandate to decide which cases regarding businessmen should be taken up by NAB and which should not. A source at the Prime Minister Office said that NAB would be bound to first refer complaints against businessmen and industrialists/investors to the committee, which would decide which case should be investigated by the NAB and which should not. The prime minister was quoted as saying: “A strategy has been prepared to remove the business community’s reservations about NAB.”
To protect public interest in audit quality, the Audit Oversight Board (AOB) has issued a warning to an audit firm for failing to disclose complete list of audit engagements during its audit quality rating. Audit Oversight Board (AOB) has taken this action against Amin, Mudassir & Co after providing an opportunity to the firm to explain its position in writing as well as an opportunity of being heard. Audit Oversight Board (AOB) has also directed the firm to submit an action plan made up of substantive measures to ensure that the same mistake is not repeated. Audit Oversight Board (AOB) conducted an independent inspection of the work carried out to assign a satisfactory audit quality rating to the firm. Upon scrutiny of the list of audit engagements submitted by the firm, it was found out by Audit Oversight Board (AOB) that the firm failed to disclose five audit engagements.
The Farmers Bureau of Pakistan (FBP), a representative body of progressive growers, has urged the government to declare agriculture and climate emergency to take the sector out of prevailing crisis. “Cotton, rice and corn crops have almost ruined because of erratic weather, heat wave, lose control on seed trade and lack of promotion of new technologies in the agricultural sector. We will see 40 per cent loss in rice and maize crops while cotton is also facing the same fate,” said founding members of FBP while talking to members of Agriculture Journalists Association (AJA) at Lahore Chamber of Commerce and Industry on Thursday. FBP founding members Dr Zafar Hayyat, Mian Shaukat, Aamir Hayat Bhandara and Imran Shah Khagga urged the government to intervene for saving the growers.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index is not becoming able to give a clear breakout of an upward wedge in either side since last many days and right now it’s getting resistance from resistant trend line of that wedge along with a horizontal resistant region. While daily bullish momentum is losing its strength and it’s expected that index would try to bounce back in downward direction after posting a triple top on a rising trend line which fall on 32,500 points on weekly chart and this pull back would result in a correction which would try to lead index towards 32,200 and then 31,700 points.
While on flip side if index would succeed in penetration above 32,500 points then a sharp spike could be witnessed with a narrow range towards 32,800 and then 33,200 points. It’s recommended to post trailing stop loss on long positions and start selling on strength with strict stop loss of 33,200 points.
While on flip side if index would succeed in penetration above 32,500 points then a sharp spike could be witnessed with a narrow range towards 32,800 and then 33,200 points. It’s recommended to post trailing stop loss on long positions and start selling on strength with strict stop loss of 33,200 points.
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