PSX Daily Market Review 08 Dec. 2016

The Bench Mark KSE100 Index Opened at 44199.40, posted day high of 44545.19 and day low of 44107.82 during last trading session while session suspended at 44494.99 points with net change of 295.59 points and net trading volume of 244.96 million shares. Dailyl trdaing volume of KSE100 listed companies increased by 55.39 million shares or 29.21% on DOD bases.
Foreign Investors remain in net buying of 1.08 million shares but net value of Foreign Inflow dropped by 1.17 million US Dollars during last trading session. Categorically Foreign Individuals and Corporate investors remain in net buying of 0.05 and 1.11 million shares but Overseas Pakistanis remain in net selling of 0.09 million shares. While on the other side Local Individuals and Brokers remain in net buying of 16.6 and 2.37 million shares but Local Companies, Banks and Mutual Funds remain in net selling of 2.21, 8.34 and 6.97 million shares respectively.

Asian shares hopped to one-month highs on Thursday after Wall Street strode to another record and bonds rallied on wagers the European Central Bank would extend its asset buying campaign at a policy meeting later in the session. Risk appetites got an added boost when China reported upbeat trade figures with exports and imports both beating forecasts. Resource imports were very strong, a major reason prices for bulk commodities have been going gangbusters recently. The resource-heavy Australian market jumped 1.2 percent, as did MSCI broadest index of Asia-Pacific shares outside Japan. South Korea climbed 1.1 percent led by an all time-peak for heavyweight Samsung Electronics.
Pakistan Petroleum Limited (PPL) has achieved a major milestone in November with net PPL production once again crossing the 1 bcfe/day-mark, resulting in an overall production increase of more than 10 percent during the current year as compared to 2014-2015. This has been made possible largely due to the company structural reorganisation to an asset-based hybrid set-up in mid-2015, enabling renewed focus to optimise reserve replacement and production from mature assets and fields.
The slowdown in profitability may hamper the banks ability to plough back profits and support the capital base, which can put downward pressure on their capital adequacy ratio (CAR), said the State Bank of Pakistan (SBP) in its third quarterly report (July-September) issued on Wednesday. The report said the spread between lending and deposit rates is shrinking in the wake of easy monetary conditions.
The World Bank has cancelled a $100 million loan approved for a natural gas efficiency project citing a lack of interest on the part of a Pakistani gas distribution company. The project, which was to be carried out by Sui Southern Gas Company (SSGC) in its distribution areas in Karachi, interior Sindh and Balochistan, was aimed at enhancing the supply of natural gas by reducing physical and commercial losses of gas in the pipeline system.
Iran signed a preliminary agreement with Shell on Wednesday to work towards developing major oil and gas fields as it seeks to boost its output. The deals open the way for Shell to carry out assessments at the South Azadegan and Yadavaran oil fields, both in south-western Iran, as well as an offshore gas field near Kish Island in the Gulf.
SEARL, MUGHAL and AKZO along with Fertiliser Sector and Banking Sector can lead market in positive direction, but PIAA can be part of Laggards.

The Bench Mark KSE100 Index is trying to penetrate its cap of a trend line on daily and Intraday chart on its double top which is a very strong indication for a pullback as Intraday Stochastic also has created a crossover which can push KSE100 index back towards 43805 and further more. Daily Stochastic and MAORSI also have reached required level for a pullback. On daily chart Stochastic is trying to create a crossover which can be an end for current bullish rally. For current trading session, market has a gap till 44775 points. Trading with strict stop loss is recommended.