PSX Daily Market Review 05 Dec. 2016

The Bench Mark KSE100 Index Opened at 42907.36, posted day high of 43308.14 and day low of 42907.36 while session suspended at 4327.90 points with net change of 363.54 points and net trading volume of 88.32 million shares. Daily trading volume of KSE100 listed companies dropped by 87.43 million shares or 49.75% on DOD bases.
Foreign Investors remain in net selling of 1.33 million shares and net value of Foreign Inflow dropped by 0.73 million US Dollars. Categorically Foreign Individuals and Overseas Pakistani remain in net selling of 1.38 and 0.27 million shares but Foreign Corporates remain in net buying of 0.33 million shares. While on the other side Local Individuals remain in net selling of 14.49 million shares but Local Companies, Banks, Mutual Funds and Brokers remain in net buying of 1.86, 11.49, 4.5 and 2.13 million shares respectively.

Asian shares lost some of their recent gains on Friday, after lackluster sessions on Wall Street and Europe, while 10-year U.S. Treasury yields and crude futures pulled back from multi-month highs hit overnight. MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dropped 0.6 percent, but remained on track to end the week up 0.6 percent. Japanese Nikkei .N225, which jumped to an 11-month high on Thursday, slipped 0.6 percent on Friday. It is set for a weekly gain of 0.1 percent. South Korean shares .KS11 dropped 0.7 percent, extending weekly losses to 0.25 percent, after opposition parties said they would propose a motion later on Friday to impeach President Park Geun-hye over an influence-peddling scandal, with the intention of holding a vote on her impeachment on Dec. 9. Chinese CSI 300 index .CSI300 retreated 0.5 percent, shrinking gains for the week to 0.3 percent. Hang Seng index .HSI, which gave up 0.9 percent, is heading for a 0.2 percent weekly loss.
Pakistan State Oil (PSO) is reportedly again on the verge of default due to continuous pile-up of receivables against power sector which have reached Rs 220 billion in addition to Rs 7 billion of SNGPL against supply of RLNG as of December 1, 2016, well-informed sources told Business Recorder. The PSO has written a number of letters to the top brass of ministry of petroleum as well as ministry of water and power, besides having meetings for payment of receivables, but the commitments made have not been honoured.
The Sindh government has released Rs 4.5 billion arrears of electricity bills to HESCO and SEPCO as first installment of their total bills of Rs 27 billion. This was disclosed by Secretary Energy Agha Wasif and Secretary Finance Hassan Naqvi during a meeting with chief minister Sindh Syed Murad Ali Shah here at the CM House on Friday.
The government is to deregulate prices of compressed natural gas (CNG) countrywide and in this connection a proposal has been sent to all stakeholders for their input, Secretary Ministry of Petroleum Arshad Mirza has said. Talking to Business Recorder here on Friday after a meeting of the Senate Special Committee on Gas Infrastructure Development Cess (GIDC), Mirza said that the government is considering deregulating CNG prices, for which consultations with the different stakeholders are under way.
State Bank of Pakistan on Friday injected Rs 670.8 billion into money market for seven days through its open market operation (OMO).The rate of return accepted 5.82 percent per annum, said SBP statement. Copyright APP (Associated Press of Pakistan)
PSO, POL, MUREB and GATM can lead market in positive direction.

The Bench Mark KSE100 Index is capped by a resistant trend line on daily and Intraday chart on its double top which is a very strong indication for a pullback as Intraday Stochastic also have created a crossover which can push KSE100 index back towards 43155 points and further more. But a postive hope on technical side is still there as on daily chart KSE100 index have generate a bullish crossover along with a crossover of MAORSI and these both can push index upward in comming days.