PSX Daily Market Review - 9th Oct 2019
Previous Session Recap
Trading volume at PSX floor dropped by 149.13 million shares or 38.03% on DoD basis, whereas the benchmark KSE100 index opened at 33,740.52, posted a day high of 33,872.18 and a day low of 33,409.12 points during last trading session while session suspended at 33,476.62 points with net change of 160.20 points and net trading volume of 169.77 million shares. Daily trading volume of KSE100 listed companies dropped by 77.38 million shares or 31.31% on DoD basis.
Foreign Investors remained in net buying positions of 3.72 million shares and net value of Foreign Inflow increased by 1.84 million US Dollars. Categorically, Foreign Individual, Foreign Corporate and Overseas Pakistanis investors remained in net buying positions of 0.06, 2.54 and 1.12 million shares. While on the other side Local Individuals and Banks remained in net buying positions of 7.15 and 2.13 million shares respectively but Local Companies, NBFCs, Mutual Fund, Brokers and Insurance Companies remained in net selling positions of 1.95, 1.27, 3.44, 3.63 and 1.96 million shares respectively.
Analytical Review
Asian stocks swoon on signs of prolonged U.S.-China standoff
Asian stocks fell the most in a week on Wednesday as the United States and China’s broadening dispute over trade and foreign policy showed little sign of coming to an end, weighing on global economic growth. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.44%. Chinese shares .CSI300 fell 0.47% after briefly touching a five-week low. Australian shares were down 0.76%. The U.S. Treasury yield curve steepened in Asia after U.S. Federal Reserve Chair Jerome Powell signaled further interest rate cuts and the resumption of bond purchases to address a recent spike in money markets rates. Oil prices extended declines as U.S. visa restrictions on Chinese officials and the addition of more Chinese companies to a U.S. trade blacklist weighed on already slim hopes that Washington and Beijing could reach a truce at trade negotiations this week. The United States and China are engaged in a year-long row that has slowly expanded beyond trade policy, suggesting even more damage to an already fragile global economy.
Fashion, design industry has huge significance for development: Alvi
President Dr Arif Alvi said that fashion and design industry has huge significance for socio-economic development of the country. The President stated this while chairing 9th meeting of the Senate of Pakistan Institute of Fashion and Design (PIFD), Lahore, here on Tuesday. Various items of the agenda came under discussion and approval was granted accordingly. The President said that fashion and design industry had huge significance for socio-economic development of the country.
Azerbaijan offers LNG supply on long-term basis to Pakistan
Azerbaijan on Tuesday offered Pakistan to supply liquefied natural gas (LNG) on the long term basis and expressed interest in infrastructure development of the commodities especially oil and gas exploration activities. A delegation of Azerbaijan, led by Ambassador Ali Alizada, expressed the keenness during a meeting with Minister for Petroleum Omar Ayub Khan here. Country head state-owned State Oil Company of Azerbaijan Republic (SOCAR), Azerbaijan’s largest oil and gas company operating in many countries, accompanied the ambassador.
Chinese firm investing in Gwadar gets 23-year tax exemption
Federal Minister for Maritime Affairs Ali Haider Zaidi has announced that the government has granted tax exemption to the China Overseas Ports Holding Company (COPHC) for 23 years to facilitate establishment of its industrial units at Gwadar Port. Accompanied by COPHC Chief Executive Officer Zhang Baozhong and Minister for Economic Affairs Hammad Azhar, Mr Zaidi told a press conference on Tuesday that the COPHC that had already been operating at Gwadar Port would get tax exemption for installation of machinery and other equipment at the port. The initiative was a step towards relocation of the Chinese manufacturing industry in Gwadar and engaging the local labour, he said, adding that the move would ultimately boost Pakistan’s economy. The minister said the COPHC would also set up a desalination plant with the cost of Rs1.95 billion to provide 5,000 gallons of water per day to the people.
World suffering synchronised slowdown: IMF chief
Grinding trade disputes are undermining the global economy, which is set to see its slowest growth in nearly a decade, the new IMF chief said on Tuesday. Research shows the impact of the trade conflict is widespread and countries must be ready to respond in unison with cash infusions, Kristalina Georgieva said in her first speech as managing director of the International Monetary Fund. She also called for a ramp-up in carbon taxes to address the other challenge facing the global economy: climate change. “In 2019, we expect slower growth in nearly 90 per cent of the world. The global economy is now in a synchronized slowdown,” Georgieva said in a speech ahead of IMF-World Bank autumn meetings next week. “This widespread deceleration means that growth this year will fall to its lowest rate since the beginning of the decade.” She said the IMF is cutting its forecasts for growth this year and next. Previously, the world economy had been projected to expand by 3.2pc in 2019 and 3.5pc in 2020.
Asian stocks fell the most in a week on Wednesday as the United States and China’s broadening dispute over trade and foreign policy showed little sign of coming to an end, weighing on global economic growth. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.44%. Chinese shares .CSI300 fell 0.47% after briefly touching a five-week low. Australian shares were down 0.76%. The U.S. Treasury yield curve steepened in Asia after U.S. Federal Reserve Chair Jerome Powell signaled further interest rate cuts and the resumption of bond purchases to address a recent spike in money markets rates. Oil prices extended declines as U.S. visa restrictions on Chinese officials and the addition of more Chinese companies to a U.S. trade blacklist weighed on already slim hopes that Washington and Beijing could reach a truce at trade negotiations this week. The United States and China are engaged in a year-long row that has slowly expanded beyond trade policy, suggesting even more damage to an already fragile global economy.
President Dr Arif Alvi said that fashion and design industry has huge significance for socio-economic development of the country. The President stated this while chairing 9th meeting of the Senate of Pakistan Institute of Fashion and Design (PIFD), Lahore, here on Tuesday. Various items of the agenda came under discussion and approval was granted accordingly. The President said that fashion and design industry had huge significance for socio-economic development of the country.
Azerbaijan on Tuesday offered Pakistan to supply liquefied natural gas (LNG) on the long term basis and expressed interest in infrastructure development of the commodities especially oil and gas exploration activities. A delegation of Azerbaijan, led by Ambassador Ali Alizada, expressed the keenness during a meeting with Minister for Petroleum Omar Ayub Khan here. Country head state-owned State Oil Company of Azerbaijan Republic (SOCAR), Azerbaijan’s largest oil and gas company operating in many countries, accompanied the ambassador.
Federal Minister for Maritime Affairs Ali Haider Zaidi has announced that the government has granted tax exemption to the China Overseas Ports Holding Company (COPHC) for 23 years to facilitate establishment of its industrial units at Gwadar Port. Accompanied by COPHC Chief Executive Officer Zhang Baozhong and Minister for Economic Affairs Hammad Azhar, Mr Zaidi told a press conference on Tuesday that the COPHC that had already been operating at Gwadar Port would get tax exemption for installation of machinery and other equipment at the port. The initiative was a step towards relocation of the Chinese manufacturing industry in Gwadar and engaging the local labour, he said, adding that the move would ultimately boost Pakistan’s economy. The minister said the COPHC would also set up a desalination plant with the cost of Rs1.95 billion to provide 5,000 gallons of water per day to the people.
Grinding trade disputes are undermining the global economy, which is set to see its slowest growth in nearly a decade, the new IMF chief said on Tuesday. Research shows the impact of the trade conflict is widespread and countries must be ready to respond in unison with cash infusions, Kristalina Georgieva said in her first speech as managing director of the International Monetary Fund. She also called for a ramp-up in carbon taxes to address the other challenge facing the global economy: climate change. “In 2019, we expect slower growth in nearly 90 per cent of the world. The global economy is now in a synchronized slowdown,” Georgieva said in a speech ahead of IMF-World Bank autumn meetings next week. “This widespread deceleration means that growth this year will fall to its lowest rate since the beginning of the decade.” She said the IMF is cutting its forecasts for growth this year and next. Previously, the world economy had been projected to expand by 3.2pc in 2019 and 3.5pc in 2020.
Market is expected to remain volatile during current trading session.
Technical Analysis
The Benchmark KSE100 index is trying to bounce back after getting resistance from horizontal resistant region along with a rising trend line therefore it's expected that index would try to take a dip if it would succeed in penetration below 33,200 points on hourly chart. Daily and weekly momentum have lost it strength therefore it's recommended to start selling on strength with strict stop. As of now index have supportive regions standing at 33,200 and 32,860 points while in case of any bullish spike index would face resistances at 33,800 and 34,500 points.
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