PSX Daily Market Review 11 Nov. 2016

The Bench Mark KSE100 Opened at 42203.63 and spiked directly in positive direction by keeping day same as opening and posted day high of 42772.21 points while session suspended at 42703.99 points with a net change of 500.36 points and net trading volume of 232.30 million shares. Daily trading volume of KSE100 listed companies dropped by 63.84 million shares or 21.56% on DOD bases.
Foreign Investors remain in net selling of 2.98 million shares and net value of Foreign Inflow dropped by 3.71 million shares. Categorically Foreign Individuals and Corporates remain in net selling of 0.19 and 4.25 million shares, while the Overseas Pakistanis remain in net buying of 1.46 million shares. On the other hand, Local Companies and Mutal Funds have tried to cover pressure created by Local Banks by remaining in net buying position of 19.02 and 10.81 million shares respectively against net selling by banks of 31.59 million shares. Local Individuals and Brokers also have supported positive trend by remaining in net buying position of 2.61 and 3.29 million shares respectively.
International Stocks closed with a mixed trend during last trading session as American Indices US30, S&P500 closed with net change of 1.46 and 0.38% in positive direction. However, Nasdaq closed in negative direction with net change of -1.64% on DOD bases, DAX30 closed slightly up with change of 0.12 and FTSE(UK100) closed in bearish momentum and dropped 1.40%. Precious Metals on COMEX(Commodity Exchange Incorporated) closed with mixed change as Gold closed -1.21% down but silver prices gained 1.09% on DOD bases. NYMEX WTI Crude Oil closed 1.88% down.

Crude Oil prices remained under pressure in Japanese and Chinese sessions. However, its getting support from its 61.8% correction on intraday bases around 44.10 USD/bbl. Reversal from supportive region of 44.10 can call for an expansion towards 45.89 and 46.90 USD/bbl. This would be a positive aspect for PSX as it will generate some positive sentiment in short term for intraday traders of Oil Sector.
MSCI broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 1.4 percent as U.S. bond yields continued to soar on views that Trump spending plans will push up inflation, possibly triggering more aggressive rate hikes by the Federal Reserve.
Demonstrators took to the streets across the country for a second day on Thursday to protest Donald Trump presidential election victory, voicing fears that the real estate mogul political triumph would deal a blow to civil rights.
The National Accountability Bureau (NAB) has so far made a recovery of Rs 3,593.295 million from nine Rental Power Projects (RPPs). However, the NAB failed to recover outstanding mobilisation advance from three companies, including Karkey, Piranghaib and Sharaqpur Rental Power Projects, according to a NAB report submitted to a sub-committee of the Public Accounts Committee (PAC) Thursday.
Domestic mills are buying good quality cottons increasingly for fear that higher grade lint will deplete in the market in the foreseeable future. Thus the tone of the cotton market was generally quite steady on Thursday as mills buying resulted in good turnover.
PKGS, NCL, DGKC, CSAP and AKZO are looking attractive on Intra-day and short term bases, they can lead the market in positive direction. On the other side, ENGRO, ATRL and PSO,will remain under pressure.

KSE100 Index is trying to overcome previous bearish sentiments and has tried to penetrate its resistant regions by closing above 42660 points. As of now, Weekly Closing matters a lot to determine whether market has changed its daily and weekly trend in bullish mode or it is still bearish. The current session will decide whether closing above 42660 was a false breakout or market has changed its momentum. Technically, Daily and Weekly charts are in a bearish mode. The only hope for bulls is Monthly charts, which is attracting technical traders.